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

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