More and More Crude
Posted On Wednesday, September 9, 2009 at at 11:04 AM by Finance FanaticDespite massive deflation in most every consumer demanded product (housing, cars, commodities, food), crude continues to find ways to climb higher. Crude futures top the $70 mark again, which as a result, does not weather well for the consumer. All beaten down consumers need now, is increasing oil prices to boost up the price of gas and rob them more of their discretionary income. We already know consumer credit is down with record rates, saving rates are record high, and income is getting less and less. With increasing oil prices, there will be no more money left to circulate in the actual money supply, thus boosting the overall economy. I can only see this recent blast in crude prices lasting for a very short period. We saw oil futures get massively manipulated in 2007 and 2008, so we should not forget its easy vulnerability.
Volume remains critically low in market trading today as investors are finding it difficult to find things to buy these days. I don't expect volume to remain low for very much longer as we are heading into the busy season for hedge funds and Investment Banks. Considering that 200,000 jobs are still getting slashed every month, I don't see consumer income improving anytime soon. Thus, continued struggles into 2010.