"We're going to start to see how solid the economy is," said PFGBest analyst Phil Flynn, who believes oil prices could fall below $60 before the end of the year.
SHOOT: The 'rebound' is most certainly in doubt. The economy is not solid, but the caveat is oil prices will remain above $60, I believe, in a range of around $60-$80. Any 'recovery' will be restrained by increased energy prices which are now very sensitive to changes in demand/consumption. There's also inflation, which is devaluing the value of the dollar, and the value of wages, including worldwide.
NEW YORK (AP) -- Oil prices tumbled Friday as unemployment hit a 26-year high, sowing more doubts about the strength of the economic recovery and crude demand.
The unemployment rate hit 9.8 percent in September, the highest since June 1983, as employers cut a worse-than-expected 263,000 jobs.
All told, 15.1 million Americans are now out of work, the Labor Department said. And more than 7.2 million jobs have been eliminated since the recession began in December 2007.
Crude has about doubled in price since February, pulled higher in part by the hope that the economy is coming back from the worst recession since World War II, a six-month rally on Wall Street and a battered dollar.
But the jobs figure and recent reports on manufacturing show the economy is still weak. The Commerce Department on Friday said that new orders to U.S. factories fell in August by the largest amount in five months. The 0.8 percent drop was much worse than the 0.7 percent that economists expected.
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clipped from finance.yahoo.com
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