Oil prices fell 2.2 percent on Thursday as deepening economic gloom and soaring crude inventories in the United States eclipsed geopolitical tensions that have put world supplies at risk.
The decline followed Wednesday's 12 percent drop, which marked the biggest daily percentage decline in the price of crude oil in more than seven years.
Oil prices have dropped more than $100 a barrel since July as a global financial crisis has cut consumer and business energy demand, threatening to shrink total world oil usage for the first time in 25 years.
What’s next for oil?
Joe Terranova recommends taking a hard look at the moves in oil prices over the last 3-months. “Use oil as an indicator to tell you when speculative risk is willing to be assumed again.” He says patterns in this chart lead him to believe that oil will not move higher anytime soon. “We’re not ready yet. We have to work off the supply glut.”
However, if you want exposure to the energy space he says you might consider Suncor , ConocoPhillips , National-Oilwell Varco as well as the Canadian Dollar ETF “because it remained resilient,” Terranova says.
To see our entire conversation with Joe Terranova please watch the video.