Crude oil bounced back Monday after falling by as much as four percent to the lowest levels since the start of the financial crisis. Bobbi Rebell reports.
Oil prices recovered from near 11-year lows on Monday. But there are many signs the downward trend will continue. Caprock Risk Management's Chris Jarvis says it is a perfect storm for oil prices. SOUNDBITE: CHRIS JARVIS, FOUNDER, CAPROCK RISK MANAGEMENT (ENGLISH) SAYING: "Twenty dollar oil could certainly happen. I mean, if we see a global slowdown and demand starts to come off." Jarvis expects volatility to continue. Before rebounding Brent had fallen below $35 a barrel on Monday. The biggest issue weighing on the markets: a global glut of oil that shows no real sign of ending. Todd Colvin of Ambrosino Brothers trades oil at the CME in Chicago. SOUNDBITE: TODD COLVIN, SENIOR VICE PRESIDENT, AMBROSINO BROTHERS (ENGLISH) SAYING: "You have that little group in the middle east called OPEC, who just came out of a meeting last week, who said they are not going to put limits on production, and you are going to have Iran coming online, and they are going to start adding to the supply glut. Not to mention here in the U.S., we are talking about lifting the oil export ban that we've had since the mid 1970's, so you are going to continue to see oil prices have supply pressures." Add to that- the weather. The fall has been unusually warm. And, of course, the Fed. A rate hike would support the U.S. dollar, which in turn would put more pressure on energy prices.