Filed under: International markets, Middle East, Commodities, Oil

Today, oil prices have continued yesterday’s sell off, falling $1.13 down to $79.11 as more profit taking is hitting the market.

Today’s selling comes after prices dropped by $1.42 yesterday as traders seem to believe current market prices are unjustified based on current fundamentals. After the steep run up in prices last month, we should not be too surprised to see prices retreating a bit, but I would urge you not to read too much into the past couple of days of trading. It would be unwise at this point to assume prices will head too much further down over the next few weeks.

We will get a good indication of just where the market wants to head tomorrow when weekly inventory data is reported. Based on the recent trend, I would not be surprised at all to see inventories have fallen more than expected last week. Analysts are expecting to see a draw of 400,000 barrels last week, and if we see any additional declines, prices are going to be back over $80 a barrel fast.

Continue reading Oil prices continue to retreat, but don’t expect them to decline much further

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This entry was posted on Tuesday, October 2nd, 2007 at 3:20 pm and is filed under Stocks Money News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.