Crude on the Slide

Judging by the equity markets reaction yesterday to the proposed U.S. bank bailout plan by Treasury Secretary Geithner, the market doesn’t approve. The bank bailout was largely hyped by the media, but Wall Street’s reaction has cast a heavy shadow on the financial markets. The plan was intended to provide stability to a weakened U.S. financial system. Without added stability, an economic recovery could begin to take place. Now that the markets have crushed this proposal, crude oil may continue to head lower.It is not difficult to be bearish on crude oil, given the price in crude dropped from $147 in July to yesterday’s close of $38.All the talk of bank bailouts, TARP plans, and the economic stimulus plan arouse feelings of a quick economic turnaround. However the market had a different view as the Dow Jones Industrials Average was sent lower by the tune of 4.6% while crude oil was punished 4.5%.Crude oil may slip to the $35 price level by the week’s end on poor market sentiment and negative oil inventories figures that are expected to be released later today at 15:00 GMT. U.S. crude oil stockpiles could potentially increase into March, adding additional downward pressure to the price of Oi