Magazine article Modern Trader

Is Crude Rally Over?

Magazine article Modern Trader

Is Crude Rally Over?

Article excerpt

The mere volume of bullish news over the last year supporting higher crude oil prices had many analysts declaring a paradigm shift in oil pricing. Crude oil futures prices had never been able to sustain $30-plus levels for very long, but some analysts now believe it will never dip below $30 again.

That said, crude oil has dropped $14 from the high above $55, and some analysts see much more to come. Kyle Cooper, energy analyst at Citigroup Global Market, is targeting $30 to $35 crude oil by the second quarter. Cooper says the rally overshot because the market was reacting on fear.

"Fear is what got us to $55," Cooper says.

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IFR Pegasus energy analyst Tm Evans agrees.

"We enjoyed being afraid. We worried about everything," Evans says.

To be fair, there was a lot to be worried about. Venezuela, Nigeria, Iraq, Russian oil producer Yukos and a string of hurricanes hitting the Gulf Coast. …

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