Oil Price Trend Down

The price of oil continued declining today as investors bet on a long recession. Despite OPEC’s plans to scale back production, oil dropped below $34 per barrel in light of a glut on the market and no increase in demand foreseen in the immediate future. That will help the USA ease its economic woes, but bodes ill for the global economy (via Instapundit).

Oil prices fell below $34 a barrel Tuesday on the continued gloomy outlook for global energy demand and as traders sold the expiring benchmark contract due to a lack of space at a key U.S. storage facility.

By midday in Europe, light, sweet crude for February delivery was down $3.14 to $33.37 a barrel in electronic trading on the New York Mercantile Exchange.

The oil producers are caught in their own trap. They ran up so much debt when oil was spiking, that now it takes massive production(overproduction?) to satisfy the payments. Sorry guys, you didn't buy into the T Boone Pickens joke we will never see oil below $100 a barrel again, did you? Shame.