Energy Prices Struggle to Find a Bottom, Brent Slides to 27-Month Low

2014-10-10

Levels in crude and natural gas continue to slide as the U.S. dollar strengthens, despite an escalation in global conflicts and winter weather on the horizon. Luke Rahbari of Stutland Volatility Group explains to TheStreet’s Jill Malandrino commodities are priced in dollars and dollar strength looks like it's here to stay which is a major factor to pressure on oil prices and related energy stocks. In addition, EIA data were released earlier Wednesday showing a strong build in supplies which means market psychology and supplies will continue pushing prices lower. Rahbari says volatility in the oil markets is high due to the drop in prices and wild price swings, and he would wait for more stability in the underlying commodity before trying to find a bottom in stocks.