Oil? What's Oil?

With our financial system in turmoil, no one is paying attention to the fact that oil is down another $5 and change.  As shown in the chart below, after being up 51.38% at the start of July, the commodity is now down on the year.  As oil skyrocketed, so many companies lowered guidance recently after factoring in a large increase in energy costs.  With oil now back to break even for the year, corporate profits should benefit.

click to enlarge

Comments

[phdinsuntan...:]

no liquidity, no leverage, no contract roll over, see you @ 70/barrel

2008 Sep 15 12:34 PM

[waterlily57:]

So does anyone know who got their fingers burned?

2008 Sep 15 12:36 PM

[Brian Pursley:]

Deflation.

2008 Sep 15 02:17 PM

[jim m:]

speculation had nothing to do with it

2008 Sep 15 03:20 PM

[Alan von Al...:]

200979: Merrill

2008 Sep 16 01:08 AM

[john s. gordon:]

speculation had everything to do with it. the speculators & hedgie funds are even as we speak dumping their overleveraged positions.
> jack

2008 Sep 16 08:35 AM