There was a late wave a selling at the end of the day. |
There were very weak fundamentals before this sell-off. The failure to make above $10 generated a lot of selling. |
There's conflicting weather models on that (approaching storm), |
There's no telling how high prices of gasoline prices could go, at least for a time. Four dollars or higher is not out of the realm of possibility. |
There's pre-holiday buying taking place. In Iraq and elsewhere things are percolating. The market will be shut four days, and in this geopolitical situation it makes sense to cover positions and bets. |
There's too much uncertainty, |
These are newer, bigger worries for the energy market. |
They are going to be record, blockbuster, huge, given the fact of where these commodity prices are going. |
This condition will last through the New Year and has given the technical picture a decidedly negative bias. Any bargain hunters have certainly been given pause by yesterday's action, although the low volume probably exacerbated the downdraft. |
This is a very nervous market that needs every single incremental barrel the market can put out and produce, |
This isn't enough to break the back of high oil prices. |
To the extent that those reports disappoint us, you may see rebounds. |
Tropical Storm Arlene helped spur the rally. As the storm passes, prices will fall. It's not headed for the main producing areas and it's not that powerful. |
We are at levels that in the past several years had caused gasoline prices to approach the $1.70-type national average record levels. |
We are in assessment mode right now. We are still trying to get a better picture of when refineries will be back up and production in the Gulf is restored. |