This transcript is automatically generated
Thank you very difficult -- wouldn't -- -- prices taking a plunge in late day trading after hitting 100 dollars a barrel last week.
Prices dropped nearly five dollars.
And just a few minutes of trading today to -- below 95 dollars a barrel.
Perfect guy to join us on this today Andrew without president of without oil associates thanks for joining is sandy.
Now thanks for having me can you explain this what happened today.
Where -- I think the market sentiment is changing and it when you look around there was a lot of euphoria last week in QE3.
They did the Fed going -- -- unlimited mortgage backed security purchases.
Driving the dollar weak are driving commodities hi there.
And then people look around and go well -- -- really gonna make a difference as far as demand.
Then when you look over in the Middle East and we do see all this.
Unrest and a lot of that -- our demonstrations against America.
But what it really is is that we're not gonna impact this -- the flow of crude oil out of there are so the marketers think and the supply stays the same demand is going to be an issue.
Maybe we got over enthusiastic.
Anyone a couple of things out there for viewers -- -- just seeing that this actually happened today because again this was a very sharp sell off.
In a matter of minutes just for the for the close of pit trading.
I'd today we didn't this -- a coordinated selloff it wasn't just oil it was the rest of the energy complex as well natural gas heating oil.
Our Bob gasoline also took a tumble the CME group in Chicago's that there is no technical issues involved that the move but the market's performed as designed.
But you're saying that this sell off in the last few minutes of -- treating.
With a lot of that a piled into the alongside of this market gotten nervous because all the geopolitical -- the talk of the White House and the SP RX -- -- Well I think so -- we've seen this big run up in crude oil prices over the last couple of months people -- either take profit or get out and then.
A small selloff -- generates a bigger one is people are trying to liquidate all at once head to the exit -- -- As -- as they see the market sentiment changing.
So let's look -- what happens tomorrow and the rest of the week the rest of the year when we have this fed policy on the table where they're willing to stimulate.
This economy until like gets up and going what does that end up doing long term to this oil market.
Well on a longer term basis I expect that the oil price would rise because you would see a weaker dollar.
And as a result people pile into commodities but the other side of me says when I look at demand especially in Europe which is declining.
I see that the after affects of hurricane eyes -- over oil production has returned.
Gasoline supplies are increasing I think that's bearish for the market.
We already saw -- 95 dollars earlier today I think we'll go below that to 9392.
OK and that being said everyone at home wonders about their gasoline prices.
Obviously we're an election year this is a political issue is well the folks around the country are still paying well over four dollars a gallon for gasoline -- -- a lot of talk about possibly prices are peaking at these recent highs what do you think.
Well I think prices are peaking or have peaked in fact we're now making the winter grade of gasoline.
You're gonna see that distributed throughout the northeast over the next week prices will be coming down.
Around fifteen cents a gallon I expect the national average to go below three dollars and seventy cents.
Alright Andy let outlook our associates thank you so much for joining us on that very important -- finally it.