About 6 seeks ago we were looking at $135 crude and peaked in the high $140 range. Natural gas peaked nearly $14.00 and it appeared the world as we know it would end. Today oil touched below $120 and now is trading $120.81. Natural gas is trading $8.625. I predict news shows throughout the evening will blather to no end as to why or why not and everyone will be happy something appears to be making a difference. I'll listen and I think just assume it's mental masturb..... Of course these are still seriously high prices and given all the info over the wires today I really don't see any meaningful reasons for the downturn in the energy complex. I do see hidden little nuggests of the Futures Trading Commission (CFTC) bearing down on speculators trading as non spec traders as well as quarterly profit reports showing some huge losses and Semgroup of course losing billions as reported a few weeks ago. I also heard a rumor Iran will issue a letter of response tomorrow to the Western Nations on their Nuclear issue. This faint and likely not reliable rumor indicated they may be willing to negotiate, or at least tone things down some. Crude specs HATE to see that kind of rumor. Nigerian Rebals indicated they want to blow up some more oil lines, and that's not good for us as we import a lot of Nigerian crude. Worst thing though is if prices for gasoline fall too hard demand will pick up and if year over year consumption begins to go flat, in other words no reductions in demand, pricing will go up and go up hard. I have not read all the stories yet about Obamas plans, re: strategic reserve as well as off shore drilling, but that certainly didn't hurt todays fall in pricing. Although none of these ideas will help us in the near future. I'll count this bull run over if I see crude trade under $100. That's just a gut feel right now. It will be good for consumers if crude could trade and hold under $120 in the next couple of days. Wednesday inventory reports come out for crude, gasoline and diesel. Hopefully the inventory numbers don't show another 3 million drawdown in gasoline like they did last week. The real driver I think to traders taking a bath today is economic news, which isn't too rosy. When both crude and the Dow are down that's not too good. Hopefully demand stays in check, Iran chooses to pause enrichment and investments in aternatives continues to grow. For us East of the Mississippi, weather over the next two weeks looks almost cold. That's good for natural gas pricing. You poor suckers in Texas though are baking like apple pie. No end in sight for you poor souls in the Southwest.