Friday, July 25, 2008

Oil Down Again: "Demand Destruction" is the Cause at Last

Finally "demand destruction" has come into the equation after so much crap was propping up oil prices. Now we won't see some threats from a Nigerian terrorist group moving oil prices back up $8 as the froth seems to have left the market.

Many analysts say the market's momentum points to further declines. Crude has fallen in seven of the last nine sessions, and is down more than 16 percent from its peak above $147 a barrel earlier this month.

"There's just nothing sufficiently bullish coming into the market right now to sustain a rally," said Jim Ritterbusch, president of energy consultancy Ritterbusch and Associates. "We're just seeing a new theme in which demand has become a very important part of the equation."

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