Tropical Storm Edouard posts

Feed

Oil falls to $118 as bearish sentiment grips market

A psychology reversal may be occurring in the oil market - a shift in sentiment that may be good news for U.S. consumers. That was how one trader characterized oil's $3.41 fall to $118.00 per barrel Tuesday in premarket trading.

Tuesday's early morning negative catalyst was a report that Tropical Storm Edouard will leave U.S oil rigs and refineries without significant damage, but energy trader Jim Dietz said bearish sentiment has been on the rise for about 10 days.

Beginning of psychology reversal?


"Tropical storm or not, a psychology reversal is starting to occur in the oil market. There's a real concern now that a global economic slowdown is occurring and it will be reflected in oil demand figures for August and September," Dietz said. "We've had two days of a storm in the Gulf of Mexico and negative rhetoric from Iran and oil rallies couldn't hold. That's a sign of a bearish market."

Dietz said he is presently flat, or has no open energy trading positions, but added "that may change later today if the bearish trend persists."

Continue reading Oil falls to $118 as bearish sentiment grips market

Symbol Lookup
IndexesChangePrice
DJIA-37.1910,741.98
NASDAQ-16.872,374.41
S&P 500-5.921,159.90

Last updated: March 20, 2010: 08:22 AM

Hot Stocks

General Electric

18.07-0.12(-0.66)

Alcoa

14.26-0.04(-0.28)

Apple Inc

222.2499-2.4001(-1.07)

Google Inc 'A'

560.00-6.40(-1.13)

Bank of America

16.82-0.26(-1.52)

Wal-Mart Stores

55.34-0.60(-1.07)

Exxon Mobil Corp

67.04-0.35(-0.52)

Ford

13.29-0.44(-3.20)

Citigroup

3.90-0.12(-2.99)

IBM

127.71-0.67(-0.52)

Yahoo

16.44-0.12(-0.72)

Starbucks

24.97-0.05(-0.20)

Microsoft

29.59-0.02(-0.07)

Home Depot

32.36-0.04(-0.12)

DailyFinance Headlines

WalletPop Headlines

AOL Business News

BioHealth Investor Headlines

Sponsored Links

My Portfolios

Track your stocks here!

Find out why more people track their portfolios on AOL Money & Finance then anywhere else.

BloggingStocks Partners

More from AOL Money & Finance

CNNMoney Headlines

More CNNMoney.com

Financial Times Headlines

More Financial Times

CNBC Headlines

More CNBC.com

SmartMoney Headlines

More SmartMoney

Fox Business Headlines

More Fox Business

Engadget Headlines

More Engadget