Energy Markets May Have Good News
Oil prices break to new lows, then bounce back.
Bryce Knorr
Published: Nov 14, 2008
If a bear market is over when the market refuses to go down on bad news, bulls in the energy trade may at long last have something to cheer about.
To be sure, not all the news this week ways bearish. Members of OPEC continue to rattle sabers about additional cuts in production, but so far any new moves are just talk, however likely they are to happen. But the big news was a pair of reports on energy demand. On Wednesday, the U.S. Energy Information Administration released its short-term outlook for November - something akin to the crop reports USDA puts out. Simply put, the agency slashed its demand outlook for oil, with the lowest growth rate since 1980. That's good news for consumers, of course, though it comes with the pain of a serious recession. The EIA now projects average prices of $63.50 in 2009 for crude, with gasoline at $2.37, on-road diesel at $2.73, and retail propane at $1.61 a gallon.
Read the rest of this week's Energy Report HERE.
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