Friday, 5 December 2008

So High So Low – LaVerne Baker (1959)

The Oxford Princeton Programme awards a prize each year to one of our e-newsletter readers who come closest to the December 31st NYMEX closing price of a barrel of light sweet crude. Last year's guesses around the correct answer of $95.98 were both bearish and bullish though someone actually missed the mark by just 11-cents short and was declared the winner.

This year it's anyone's guess.

As of this posting, oil prices continue to lose their value since the summer's highs of over $147/barrel as turbulent times persist globally. Light sweet crude for January sank below 45 dollars to 44.25 dollars per barrel. Last time we were in this territory was January 2005. The contract later stood at 44.61, down 2.18 dollars.

With just a few more weeks left in 2008, there is nothing immediate that warrants a buoy in pricing. But if things really do deteriorate, the Organization of Petroleum Exporting Countries (OPEC) may step in when it meets again on December 17th in Algeria (OPEC decided last weekend not to cut production and it had already done so last September and October as concerns mounted over a recession).

So, still care to take a guess?

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