Cameron Hanover – Daily Energy Hedger – August 13, 2010

Oil markets were crushed again on Thursday, with crude oil prices falling another $2.28, to bring the two-day loss to more than $4.50 a barrel. The Dow Jones Industrial Average (DJIA), the bellwether equities average, dropped 58.88 points to 10,319.95. The weakness in equities was once again a major contributing factor to the weakness in oil prices. The euro was also lower on Thursday, but hardly to the extent it was on Wednesday (see chart next page). We now have losses of $5.74/barrel in crude since Monday night’s higher close, which is the largest three-day decline since May, Dow Jones News noted in its daily roundup. Thursday’s losses were also propelled by another increase in unemployment.