Stock Trader Larry

Falling Oil Prices: The Bright Side of the Meltdown

Add to that the current lower gasoline prices are a much needed end of year/Christmas gift. I heard Dennis Gartman mention this morning that even though gas and oil prices are down, consumers are still cutting back on driving. With unemployment rising and layoffs continuing, demand may still have further to decline. I was one of the bright ones who purchased a superduty pickup in 2003, with a diesel engine no less. At the time diesel fuel was cheaper than regular gas, and always had been. As soon as I purchased the truck, that all changed and diesel fuel has been higher ever since. I guess we'll have to see what happens in the coming months before we have reason to celebrate.

$25 Oil Could Happen Before a Return to $100

I agree that Oil may be going towards $25 before $100 also. With U.S. unemployment rising; continued consumer pessimism in the economy; global demand slowing; and the current possible false market support based on a hope for a market bottom around Holiday and winter seasonality; continued consumer debt problems will cause them to continue to cut back on driving to pay for basic necessities first.