I've been working hard trying to finish today's blog but I'm still stuck in research muck. What I shall post tomorrow are the best ways to play the falling price of crude. Many experts feel that oil is vastly overpriced and expect to see it settle somewhere in the $45 to $60 a barrel range. This morning OPEC cut its 2009 growth estimate by 100,000 barrels a day. On top of that, the weekly MasterCard Spending Pulse report said gasoline consumption last week was 10% lower than a year ago and likely to remain low. The news precipitated a $5 drop in the price of crude, ending the day just below $74. I think this is the beginning of another leg down giving us the opportunity to profit from some type of short trade. But the question is, what trades will be the most profitable while also affording some degree of safety?
That's the question I'm in the middle of answering. I thought this would be a simple blog to write but I kept uncovering interesting and heretofore unknown facts while researching and it's changed my perspective on how to best play this sector. Tomorrow I'll share what I've found along with my recommendations. Stay tuned!
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