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As WTI crude continues its protracted descent, now -1.4% to $86.55/bbl, oil is now officially in...

As WTI crude continues its protracted descent, now -1.4% to $86.55/bbl, oil is now officially in bear territory, BMO's Sal Guatieri says. Deutsche Bank also joins the sliding sentiment, as "physical fundamentals are also weakening with crude oil inventories on the rise." How low can oil go? "Following the 2008 credit crisis and global downturn, it bottomed at $31,” Guatieri recalls.
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Comments (12)
  • wapiti
    , contributor
    Comments (711) | Send Message
     
    Then maybe SocGen's analyst is right saying we are going to S&P 500 @ 666 MArch 09 low?? If that happens, we'll all be hunting rabbits and squirrels..no one will ever buy into the market again as a retail investor
    31 May 2012, 11:57 AM Reply Like
  • Whitehawk
    , contributor
    Comments (3129) | Send Message
     
    The sharp plunge and reversal today was clearly linked to action in the USD index. That isn't always the case. This is a fast changing market, and I hesitate to make any long-term projections, instead looking to profit on the shorter-term volatility. If pressed, I doubt oil will trade lower than 75-80 given all the factors.
    31 May 2012, 04:35 PM Reply Like
  • untrusting investor
    , contributor
    Comments (9973) | Send Message
     
    whitehawk,
    Oil could very easily drop lower than $75/barrel if world economies worsen significantly more. China and India are weakening by the day now as the EU issues become more problematic.
    31 May 2012, 08:01 PM Reply Like
  • orange1688
    , contributor
    Comments (39) | Send Message
     
    Sell 30 put , it eont go below that imho
    31 May 2012, 05:10 PM Reply Like
  • Jan Von Braun
    , contributor
    Comments (69) | Send Message
     
    Even with a Euro blow-up, there is no way that oil will sink below 80 USD.
    31 May 2012, 05:25 PM Reply Like
  • Ocean Man
    , contributor
    Comments (589) | Send Message
     
    The possibility of oil going to $31 shows how ridiculous it is for some oil stocks to have dropped 50% on the oil move from $106 to $86.

     

    Or it could just be an opportunity for a savvy investor to catch a double on the retrace when Bernanke prints to save his job.
    31 May 2012, 07:33 PM Reply Like
  • TruffelPig
    , contributor
    Comments (4108) | Send Message
     
    Oil demand has not gone done, just production in the US etc. up. OPEC will not allow BRENT to go much below 100, so I say $80 is the likely bottom if Eurozone doesn't completely blow up. Easy oil is getting scarce - oil price will go up because of more and more supply limits and more difficulties getting to the oil. If it goes down more, buy oil stocks and wait like 2 to 3 years. Then, read this paragraph again and say: Truff saw it coming. Also, never underestimate the stupidity in the near east.
    31 May 2012, 07:55 PM Reply Like
  • Aristiphones
    , contributor
    Comments (1327) | Send Message
     
    ooops! this is good news right?
    31 May 2012, 08:53 PM Reply Like
  • TruffelPig
    , contributor
    Comments (4108) | Send Message
     
    For bears it is always bad news, regardless whether oil goes up or down. For me it is both - good and bad news. Bad because I hold oil stocks; good because I hold tech stocks.
    31 May 2012, 11:11 PM Reply Like
  • brachiosaurus
    , contributor
    Comments (237) | Send Message
     
    Once Obama and his army of tree-hugging middle-bone-lickers leave the White House, then oil will resume its upward march.
    1 Jun 2012, 02:12 AM Reply Like
  • TruffelPig
    , contributor
    Comments (4108) | Send Message
     
    Shouldn't it be exactly the other way around?
    1 Jun 2012, 06:12 AM Reply Like
  • mitrado
    , contributor
    Comments (2019) | Send Message
     
    Panic about the Oil prices!? Time to buy some stocks, then! :-P
    1 Jun 2012, 04:08 AM Reply Like
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