Blog > Oil and Energy > OPEC prez: “Crude oil might drop as low as $70 a barrel!”
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OPEC prez: “Crude oil might drop as low as $70 a barrel!”

Posted July 29, 2008

“Investors became net sellers in the crude oil market last week for the first time since mid-February 2007.”

by Jad Mouawad, International Harald Tribune

Baltimore — (TFN): “Commodity prices remain extraordinarily high by historical standards. But with the economy weakening amid a housing crisis and a credit squeeze that show few signs of improving, many traders have begun to believe demand for oil and other commodities will soften worldwide. Investors became net sellers in the oil market last week for the first time since mid-February 2007, according to Barclays Capital.

“‘The market’s expectations have changed very rapidly and unexpectedly,’ said Edward Morse, the chief energy economist at Lehman Brothers. ‘The market went out of control on the upside. But market participants realized there was much more demand destruction than had been thought even a month ago, that inventories are building up quickly, and that, in fact, more supplies are coming onto the market.’

“As a result of looser market fundamentals, many analysts believe energy prices could keep falling through the end of the year. The president of the OPEC oil cartel, Chakib Khelil, said Tuesday that oil might drop as low as $70 a barrel.”

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