Meanwhile, for the Pollyannas among us, there is some good news in a down market. Just remember that crude oil prices, at least according to some, have an inverse relationship with the stock market. When oil goes up, it filters into every consumer and transportable product, so consumer costs rise and the stock market drops on fears of inflation. When demand is down (as is the case now), oil drops. So for all of us waiting for the bear market to end, remember: When it does, crude prices will rise. So read this from Penn Energy, and weep, or smile, depending on your perspective:
HOUSTON--Crude prices fell for the fifth consecutive session Nov. 20, pulled down by a tumbling stock market, with the expiring December contract dropping below $50/bbl to its lowest closing in 3 years on the New York market.
However, analysts in the Houston office of Raymond James & Associates Inc. said the new front-month January contract climbed above $50/bbl in early trading Nov. 21 on news that crude supplies from the Organization of Petroleum Exporting Countries will be down 3.8% in November as recent production cuts begin to show.
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By Bonnie Erbe