Oil Drops Below $80 to 8-Month Low on U.S. Supply, Europe – Bloomberg 06-21-12

Salient to Investors:

Oil tumbled below $80 a barrel for the first time in eight months. U.S. stockpiles at the most in almost 22 years.

OPEC crude supplies at the highest level since October 2008. Saudi Arabia pumped crude at the fastest pace in at least 23 years.

Predictions:

Eugen Weinberg at Commerzbank sees negative momentum in the market, accelerated by inventory data, bad economic sentiment and a stronger dollar. Expects prices to slip further and bottom in late summer.

Rich Ilczyszyn at Iitrader.com sees no catalyst to spike the price, demand will continue to be relatively weak and there is plenty of supply.

U.S. oil demand in the U.S., will drop for a second year in 2012. European oil consumption will fall both this year and next.

Read the full article at http://www.bloomberg.com/news/2012-06-21/oil-drops-below-80-to-8-month-low-on-u-s-supply-europe-crisis.html