Tuesday January 09, 2007 Oil prices fall below $55 a barrel Posted by news.yahoo.com     Oil prices today slid to their lowest level in 18 months. Expectations of more mild weather and the large previously bullish investment funds now selling. $55 was a key support level now broken through                  Winter in the Northeast (the world's largest heating oil market) has been warmer than normal - which has curbed demand for heating fuels         Expect to see larger U.S. petroleum inventories in this week's government report         The front-month contract (February) hasn't been that low since June 2005         Large funds that held long positions - those that expected prices to rise - have been exiting the market since prices began their downward spiral, exacerbating the decline         Those are the same investment funds that helped drive oil to record highs in 2006. The front-month contract topped $78 a barrel in July         The market is still in a liquidating mode - there has been a jump in short positions in the market         Full article at news.yahoo.com

Permalink | Add a comment

Previous:

Monday December 25, 2006 Natural gas trouble down the line? The country is awash in natural gas inventories, and mild temperatures have kept demand in check. But the price of this home-heating and power-generation fuel is still soaring above historical norms.

Read full post | Permalink | Add a comment

Tuesday December 19, 2006 Commodities to watch for in 2007 = The rising stars from 2006 Analysts think uranium, corn and oranges will likely take the spotlight in 2007. Here are some predictions:

Read full post | Permalink | One comment