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Oil's Slide: A Result of Capitulation Selling?

Good article, clearly illustrating that the recent oil price is determined not only by actual supply and demand, but is either heavily sentiment driven, impacted by commodities speculation, or both.

The 2 year chart for oil makes interesting viewing: finance.yahoo.com/q/bc...= . Perhaps oil is overshooting on the downside, just as it overshot on the upside.

One additional factor to take into account: Obama's team has stated that a chunk of the fiscal stimulus will be used to cut energy consumption, specifically consumption of heating oil (see seekingalpha.com/user/...). That will exacerbate the impact of the recession on the price of oil.