Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Two Ways To Play: Crude's Worst Quarter in 17 Years

By

Strengthen your portfolio in good times and bad.

PrintPRINT
Bloomberg reports crude's 28% plunge this quarter is the worst in 17 years as concerns of slowing global growth will hurt its demand.

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.
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

PrintPRINT
 
Featured Videos

WHAT'S POPULAR IN THE VILLE