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Energy Blog

Afternoon Energy Update - 11/20/2008 12:00 AM - BAL 4:30 PM EST

There was a negative tone and direction to the market all day but as the DOW tanked this afternoon the energy markets turned sharply lower and the $50 support level in crude went by the wayside. Long term charts provide a target now of $46.20 in crude oil but in this environment I’m not sure it matters. Suffice it to say that global demand destruction has occurred in energy and any forecast of returning to $100 crude oil in the foreseeable future seems rather ridiculous. $30 to $50 trading range is much more realistic. Today’s story of Iran having enough material for an atomic bomb had virtually no impact. Wow. Of course we’d enjoy this if it wasn’t ripping all the markets apart including the grains (and my retirement). At this time crude is down 5.10 at 49.00 on the Jan option, gasoline is 10 cents lower and distillate is 9 cents lower. Propane also traded 4-5 cents lower today on the pipeline.

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