Oil falls below $50 a barrel for the first time since April 2009
Source: Reuters
The selloff in oil continued with little pause into the new year with U.S. crude futures tumbling below $50 a barrel on Monday for the first time since April 2009 on fears of a global supply glut.
U.S. crude's front-month contract fell to $49.95, down 5 percent from Friday's close, before recovering to $50.20 by 11:36 a.m. EDT
Brent crude for February also hit a fresh 5-½-year low, falling as low as $52.66 per barrel before rebounding back above $53.
The two crude oil benchmarks have now lost more than half of their value since mid-2014.
Read more: http://www.cnbc.com/id/102308102#.
Wellstone ruled
(34,661 posts)With most of the Stock Trades done as computer algorithmic trades,once below 50 we go to 40. And the folks that get slammed are the 401k's and anyone who has ETF's in their IRA's. Margin calls will be big time starting at close today. This is just the tip of a major wealth transfer that is about to take place. Can you imagine the grins on CITI Corps face today. We got or asses covered baby,thank you Mr. President and Mr. McTurtle,sure do like that new Derivative Protection Bill.
jakeXT
(10,575 posts)http://business.financialpost.com/2015/01/05/revamped-oil-hedges-may-test-opecs-patience/?__lsa=9d75-3a84
Fred Sanders
(23,946 posts)wordpix
(18,652 posts)The oil cartels are manipulating the price, maybe to compete with natural gas. Just hope the price stays down.
FBaggins
(26,757 posts)The last time around was a demand collapse caused by the weakest global economy in decades. This time it's caused by surplus supply .