Oil Getting Pounded Again This Morning

Look for even more bankruptcies

NEW YORK (Associated Press) – Oil prices plummeted Tuesday in Asia, falling briefly below $92 a barrel as investors feared the U.S. credit crisis that brought down brokerage giant Lehman Brothers will drag on global economic growth and restrain demand for crude.
Light, sweet crude for October delivery tumbled $3.59 to $92.12 a barrel in electronic trading on the New York Mercantile Exchange midafternoon in Singapore. It briefly fell as low as $91.54. Overnight, the contract dropped $5.47 to settle at $95.71, the first time oil closed below $100 since March 4.

A lot of hedge funds are getting slaughtered by the fall in oil, and I’ve got a bad feeling that so are far too many pension funds, whose managers got sucked in to the commodities markets that were such powerhouses this Spring.
It would not surprise me to hear that some state pension funds are seriously underfunded now.

7 Responses to “Oil Getting Pounded Again This Morning”

1. Retread says:

   September 16, 2008 at 8:51 am

   And futures are taking a beating, again. Goldman announced, and disappointed according to the seers.

2. Ken S, Fifth String on the Banjo of Life says:

   September 16, 2008 at 9:57 am

   It would not surprise me to hear that some state pension funds are seriously underfunded now.
   Well, that’s been true for many years now.

3. tree hugging sister says:

   September 16, 2008 at 10:18 am

   And they’re factoring in a 25 basis point rate cut at today’s FOMC meeting, where two days ago there wasn’t a whisper of it.
   Everyone needs to read HotAir’s post on a NYT piece from FIVE years ago, and then blink their eyes and continue reading this piece. Both will be useful should you have to shout down an Obama type screaming Bushisms.
   They won’t make any DIFFERENCE to the screamer, mind you. You’ll just feel better.

4. major dad says:

   September 16, 2008 at 10:33 am

   I don’t feel sorry for any of the greedy bastard Wall Street types. I do for pensioners though.

5. Retread says:

   September 16, 2008 at 11:19 am

   THS, I saw that piece at HA a bit earlier this morning but hadn’t seen the IBD piece. Thanks for the link.

6. The_Real_JeffS says:

   September 16, 2008 at 12:23 pm

   I do for pensioners though.
   In the long run, that’s who will hurt the most. A point that Wall Street whackjobs and Congresscritters tend to forget.

7. tree hugging sister says:

   September 16, 2008 at 5:23 pm

   Live to serve, retread!