Crude Drops below $40
Posted on 13. Jan, 2009 by admin in Crude Oil, Forex News
Crude Oil continues to head lower for the 4th day in a row. The driving factor is concerns of the slowing global economy. Rising supplies and lower demand has pushed the price of Crude below the $40 level. This was a support line that many analysts said could not be broken.
The end to a gas feud between Russia and Ukraine did little to lower the risk tolerance in the market and traders continued to move out of equities and riskier commodities throughout the day. This spat was the start of the Crude rally at the beginning of the year. Now the price of Crude Oil stands below this psychological mark. Many of the concerns are on the demand side due to a global recession.
Some are calling for Oil to be priced at $25; however this figure may be a bit to bearish, even for the most skeptical of Crude Oil traders. A $35 mark could be reachable by the end of today’s trading.
