Oil Goes Limp

One would think that oil would have had a great week since many are predicting a smaller scale replay of Hurricane Katrina in the Gulf early next week. While oil did finish the week up nearly a dollar, the action in crude can hardly be considered healthy. As shown in the intraday chart below, in four of the five trading days last week, crude oil gapped higher in the morning but failed to hold its early gains every time.

Comments

[NOWHEREMAN:]

Keep it simple, we have an economy teetering. A Hurricane hitting the Gulf might be the catalyst needed to give the economy the necessary Recessionary push.

This translates into further demand destruction in the economy which consumes the bulk of the World's oil on a per capita basis.

Surprise, surprise oil goes down. Meanwhile, another Tourist area will probably take a hit next week in the form of Hannah and Ike lurks a bit further out. Short term GDP will reflect the damage later this year.

Oil is reflecting the presumed additional slowdown.

2008 Sep 01 07:44 PM

[Pipo:]

Sooner or later OIL will be a good buy. Jim Rogers said in Malaysia:

"Commodities market can frequently correct 40% to 50% even during a bull market.”

Visit a Jim Rogers blog at: jimrogers-investments....

2008 Sep 02 06:22 AM

[watching lines:]

jjason, You contribute nothing.

Take your Spam elsewhere.

2008 Sep 02 07:50 AM