by Wolf Richter
“It will be hard to find investors that are willing to go long.”
“The worst is over.” That has been the meme in the oil business in the second quarter. Folks in Houston’s and Calgary’s office sector, companies that supply the oil patch, and everyone else associated with the industry, including hundreds of thousands of employees, are counting on it. But markets are deteriorating at breath-taking speed, with the recovery hype leeching out of it, in face of the enormous obstacles of oversupply and flagging demand.
Oil dropped again today, with WTI skidding 2.4%, settling at $43.13 a barrel on the Nymex, the lowest close since April. It is now down 16% from its oil-bust recovery peak of $51.23 on June 8.