Now we get the extreme calls for Oil again – though to the downside

As we had the 200 and 250 calls close to the high in Oil, w e can expect typically extreme calls for lows close to the lows. Today we got that even $20 is possible call. Last week, the almighty Goldman oil analyst who had insisted for so long that we might get prices of $150 turned bearish and now sees even down to $50 prices coming. My experience says we are due for the rally up to $80 as soon as CRB makes a weekly 13. We should be up for an upside correction in commodities very soon- as a possible trigger point for a brief stock rally. More easing from central banks on top of ample liquidity will be a little more inflationary anyway.

Beutel: Crude Could Hit $20 A Barrel

Sectors:Industrial Goods and Services | Utilities | Oil and Gas
By CNBC.com | 27 Oct 2008 | 08:13 AM ET
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A fast and furious as the crude oil market sell off has been, it’s far from over, says one expert.

“The pendulum does swing much faster than we give it credit for,” says Peter Beutel of Cameron Hanover.

Beutel says $37 a barrel is likely, even $20 a barrel isn’t out of the question.

“If we look at every bear market over last 30, we always cut the high by four,” says Beutel, which is how he gets the $37 number.

Crude neared $60 Monday, having traded near $150 in July. Beutel warns that though consumers and investors may welcome cheap oil again, we need to not repeat our mistakes of the past, when low prices yielded a lack of investment in new technology and alternative fuels.

“We’re going to get too low,” he warns. “We’re going to kill a lot of alternatives.”

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~ by behindthematrix on October 27, 2008.

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