Tuesday, July 22, 2008

Shortin' Crude Oil Yet?

Don't look now but last week's sell-off of crude oil futures has resumed in full force this morning. Currently futures are down another $4 per barrel sitting around the $127 per mark. Remember that a week ago we were knock-knock-knockin' on one-fifty's door.

Of course there will be folks long on commodities that will say it's just time to buy on the dip. Is it? Or is it time to see if a support around $120 will hold this week. Break down through that and you just might see a plunge that will make the last week's drop look tame.

In a related area, the 'Darts have never paid $4 a gallon for gasoline. We bought one tank of gas at $3.89 and that was the high to date. Our local stations got to $3.99 last Friday but are now already down to $3.74. A short drive from here the prices were down to $3.67. How strange it is to think $3.67 for a gallon of gasoline is cheap. But we might still escape this without ever buying the dreaded $4/ gallon gasoline. We find our entertainment in odd places.