Piracy stocks down too?
Hire costs for very large crude carriers, each able to haul 2 million barrels of oil, are at the lowest level in 10 years. Oil-tanker stocks in New York fell as the threat of a second U.S. recession in three years increased the risk that energy imports into the world’s largest economy may fall. The stock market is discounting problems ahead,” Manager of the world’s biggest shipping hedge fund, “It will be very bad for tankers.”
Oil settled below technical support at both $82.87, its low from last week, and $83.85, the 61.8 percent retracement of the rally from the 2010 lows in a Fibonacci study. Breaching those levels would send crude to test $76.17, a price that corresponds with the 76.4 percent retracement level on the Fibonacci chart.
Goldman Sachs Group Inc. maintained its 2012 forecast for Brent crude to average $130 a barrel and recommended investors hold a “long” trading position on December 2012 contracts.