Oil: No Reason to Rally

Video: No Reason for Oil to Rally

Oil Deepens Losses Below $40, Eyes on Economy
By: Reuters 22 Dec 2008

"Oil prices extended their sharp fall to drop further below $40 a barrel on Tuesday, weakened anew by growing signs of deteriorating world oil demand.

Final third-quarter U.S. gross domestic product data due later in the day is likely to underscore the ailing state of the world economy as a steady series of stimulus measures and policy moves -- including China's fifth interest rate cut -- fail to halt a slide towards the worst recession in decades.

U.S. crude for February delivery fell 49 cents to $39.42 a barrel after diving 6 percent on Monday, with volume particularly thin as traders seek to close out the worst-ever year for oil futures, which are now down 57 percent from January...

Deepening losses for U.S. stocks and the most dramatic decline ever in Japanese exports heightened anxiety on Monday about the condition of the world economy; signs that oil demand is likely to contract for the first time in a quarter century has already knocked oil prices over $100 off their July peaks."

How low can we go, watch the video above,
Aloha, Brad