WTF-Crude Fell from 62.20 to 57.38 in one hour

Discussion in 'Commodity Futures' started by himself, Jul 7, 2005.

  1. himself


    This morning August crude suddenly fell from 62.20 to 57.38 between 5 and 6 Eastern time.

    Don't think it was caused by London bombing, but then what??
  2. comment excerpt

    -A terrorist attack has ``a huge impact on the psychology of consumers,'' said Frederic Lasserre, the head of commodities research at Societe Generale SA in Paris. ``They become reluctant to spend, it has an impact on air travel, and at the end on oil demand. Today's price drop is explained by the reaction to the September 11 attacks.''-

    does anyone know how much oil demand suffered
    as a result of the madrid attacks in march 03?

  3. himself


    Thank you for your prompt response.
  4. mokwit


    Alternatively, now we can see how much of the buying in oil was purely speculative. If it was really demand related it would have gone up on fears of other actions in e.g Saudi, but it went down most likely because the hedgefunds shifted all their capital into safe haven bonds which went up.
  5. drop was to be expected, not to 57.50 though !!
  6. mokwit


    Isn't that where the hedgies locked in their profits with puts while they worked who was the greater fool who would take them out of their positions.
  7. Ebo


    $60.20 Last sale.
    What a surprise!
  8. wOg


    I agree. Technically, both oil and oil stocks looked vulnerable.
  9. mokwit,

    nice to see someone else understands the game.
  10. What was even more crazy is the sell off after the report :confused:

    The only thing good to say is that, at least this market gives you a chance to get in on the swings!
    #10     Jul 7, 2005