Two Ways To Play: Crude's Worst Quarter in 17 Years
Strengthen your portfolio in good times and bad.
Crude oil reached a record $147.27 on July 11 and dropped to as low as $90.51 a barrel on September 16 as recession worries overshadowed concerns of dwindling long-term supply.
Just yesterday analysts at Deutsche Bank cut its 2009 target price for oil by 23% to $92.50 a barrel because of economic concerns. This follows OPEC's move on September 16, when the cartel, which supplies over 40% of the world's oil, cut its forecast for 2009 oil demand.
From the Bull Pen: For those in the hyperinflation camp, expect the oil ETF (USO) to bounce back strong. Sell stops can be placed near $80 in the short term.
From the Bear Cave: For those that believe crude oil will resume its downtrend, double short oil and gas (DUG) is an option. Consider sell stops in the $35-37 range.
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