In more ways than one
Jan ’09 crude oil futures expire today, so you can expect a bit of volatility. Nevertheless, a low of $33.44 is more exemplary of the market price itself expiring…
Less than a month ago the same contract was trading in the high $40’s – at a midday price of $35.29, crude is now off 76% from it’s summer highs. Further, the price for delivery nine years hence is but half of what the near term was last July! All this in the midst of rising gasoline inventories, and despite OPEC’s promise to cut production by a few million barrels a day. When’s the last time oil spiked lower on a big production cut?
The holidays may seem a bit a dreary this year, but it could have easily been a whole lot worse. The bursting of this bubble is the reason for a few less lumps of coal in the stockings.
Data points and chart compliments of Barchart.