jackie deangelis has more on the latest plunge in oil and just how low oil prices could really go. >> rep is $50 a barrel the new $100 a barrel for crude? that's reflected in the price action. down 10% this week alone and under $60, the market is forecasting more downside. >> unless you see something happening geopolitically to make this market go higher, unless you see anything happen in terms of technicals, some sort of turnaround, i don't see it going uprig right now. >> reporter: the national average for a gallon of gas is now $2.60 according to aaa and experts call for $2.50 by the end of the year. there's a mixed reaction in the stock market. mixed energy producers seen their stock prices drop which makes investors change their stock strategy for 2015. the focus now on rail. rail shipments of crude gone from 20,000 barrels a day in 2009 to an expected 1.1 million barrels this year. and since pipeline capacity can't keep up with production, rail is expected to continue to sell the gas. >> we are seeing an increase in rail shipments, principally, due to the growth of north america

jackie deangelis is live at the new york mechanicrcantile. >> reporter: bruce springsteen says we'reaking it down. 55.20, down 1.60. and brent now back under 60 bucks a barrel. traders are saying look, it may be too soon to say we've stabilized. the sentiment is also to go lower. also the supply/demand economics have not changed. that picture is stable. having said that you mentioned the issue about bank leverage to oil companies and a lot of traders and analysts are saying the fed may not be speaking honestly about it or necessarily understand the kind of domino effect that we could see in the credit market in 2015. they're worried about it. and i'll also pose this question to you. a lot of people are worried if the fed can reach its inflation target if oil prices do go down from here. we are still talking about that four handle in oil coming just around the corner. if that happens, can they reach their inflation target? last point on gas prices, we are under $2.50 at this point. and that was very, very significant move. traders were thinking that we would see that by christmas. but

jackie deangelis has more on today's volatility in oil and the outlook for crude. >> reporter: oil prices are plummeting, but this time traders say it's different. it could get ugly. a north american production boom fueled by oil from u.s. shale producers has thrown the balance out of whack. and opec, the cartel that controls international production, digging in its heels, refusing to cut production at last week's meeting. all this sending oil into free fall, a decline of more than 10% in one day on friday, $66 and change, a five-year low. the last time we saw significant oil price collapse was 2009, a more than $100 swing to the down side but amidst a different backdrop. strong demand from china and the u.s. wasn't producing like it is now, so supply was not as robust. >> in 2008, when the dollar saw its weakness to the down side and was at its lowest levels in a long time, crude oil went to $140. in 2009 when the dollar picks its head back up and got really strong again, we fell all the way back to 33 without north american shale production and without the chinese demand we had back the

jackie deangelis reports on how lower oil prices are changing companies' plans. >> low crude prices are causing oil companies to rethink their operations in 2015. this week bp announced it would speed up job cuts in the u.s. and overseas because of recent price drops. others suspending the building of three drilling rigs. and it doesn't end there. research firm is expecting to see oil and gas exploration in 2015 take a hit as well. as a matter of fact, the firm said that we could see one-third of projects being cut accounting for $150 billion of investment. where can we expect to see cuts? in the highest areas of cost operations including arctic russia, canada and alaska but also in other complicated deep water projects. shale oil could be impacted but sees more flexibility if crew sings over $60. many looking at the credit markets where money was raised for these projects wondering if there will be increased bankruptcy risks for smaller shale drillers. the analyst i spoke to said he thinks most of these companies will survive by cutting spending on drilling to balance cash flo flows an

i'm jackie deangelis. >> here's a question. will low oil prices make some energy companies attractive takeovers in to 2015? we'll explore that later. >>> the dow broke its eight-session winning streak but record closes for the s&p 500 as well as for the russell 2000 and the dow utilities index. blue chip stocks were down 15 the nasdaq rose by a fraction and the s&p added 2 points. with all the major averages at or near record highs, dominic chu takes a look at the range of stocks that help send the markets to hit new milestones in 2014 and whether the upward trend can continue. >> reporter: 2014 turned out to be another banner year for u.s. stocks with large, mid, and small-cap indices all reaching record highs, but it was the sharp move higher in stocks in just the last couple of months that really propelled the market to rarefied air. since mid-october the s&p large cap indeck has risen 12%. the midcap index has risen by nearly 14% in that span and that russell's small-cap index has also risen by that same amount. some think

right to jackie deangelis, live in the oil pits. what is happening with crude? >> reporter: seeing steep losses, not as bad as earlier in the session. down about $1.87. session low today, $57.34. next level to watch is $56.12. haven't seen it since may of 2009. still almost a 4% decline on the day. you mentioned gas prices when you opened up. aaa saying the national average for a gallon of regular now $2.60. we were looking to see $2.50 by the end of the year. but saying we could see $2.43 by christmas day. of course, important to consumers. also tells me look at the spot prices in the marketplace, because they are leading indicator where oil prices are going. look at canadian select crude, $41, $42 a barrel. and if that's an indication prices are headed down. traders told me when we broke the $60 level, that's it. when the technical momentum piled and an we could see buying on the dip action next woke but they think the prices are going lower. the question that i'll live you think here is in 2015, is $50 oil the new $100 oil? >> thank you very much. jackie dean

let's bring in jackie deangelis with more. how closely is the oil market watching this? potentially have an impact here. let me give you more context. you mentioned the king is in the hospital getting tests. he is over 90 years old and been frail for quite some time and has had some health issues in the past. for a long time when i lived in the middle east there was no successor for king abdullah but in 2012 he appointed his half brother to be his successor. he is also fairly old and frail at this point. so a lot of people are wondering sort of what is the plan for the succession plan. they are looking at the oil minister saying he is on the oil side, as well. so they are weighing this a couple of different ways. if weaudi arabia you could see oil prices go higher because of uncertainty. if we get what we are expecting maybe prince next year things could stay the way they are if we don't see cut in production. there is also another piece to this that people are bringing to my attention which is the relations between u.s. and saudi arabia which have always been friendly p

jackie deangelis, what are we looking at? settle for wti of $63 just around 15 cents. we did push under 63 for the first time since june -- pardon me, july of 2009. very significant there. traders saying if we close under 63 that would add a lot of pressure to the down side. flirting with the 63 level is pretty significant. we are looking at brent crude around 66.20. near $3 slides in both commodities today. we have a weaker dollar but there is fear about dollar strength longer term. what saudi arabia said about oil stabilizing that is trickling and weighing on the markets. part of this is technical pressure. when you hit five-year lows and break through them the market wants to go lower. the flip side is there is good news for consumers. aaa saying it thinks we will hit five year lows. we are at $2.67 for the average. some saying we can see $2.50 before the end of the year. >>> why goldman sachs says it is time to bet big on burrito bowls. >>> lows of the dow down about 118 points sitting at 17,840. dow 18,000 is not on the

we are looking at wti flat and a loss of brent at about 1%. >> thank you very much jackie deangelis.ig drop in oil prices must be bad news for environmentalists who want to get the u.s. off oil. it is hard to get people to invest in solar and wind and gas is $2 and change per gallon. joining us is bob deans from the defense council. thank you for joining us. how do you see this from the environmental perspective? >> i think most americans have gotten used to these kinds of cycles. oil prices go up and down and back up again. what it means always is that american families, workers, our whole economy is held hostage to global market conditions we can't control or predict. that is why eight american presidents going back to richard nixon have called on us as a nation to reduce our reliance on oil, to break this costly addiction to oil. let's invest in efficientancies so we can do more with less waste. let's make workers more competitive. let's get more power from the wind and the sun. let's build in this country the best hybrid and electric cars anywhere in the world. let's keep our eye

jackie deangelis joins us now from the nymex. no skaters, jackie, down there, but plenty of action in the p pits. >> that's right. look at the prices, nat gas at 322, when i was reporting it was under $4. we thought that was a big deal. when it dropped under 3.50, what a drop. now at 3.22 traders are saying technically we're positioned to go lower from here and you touched on it. this is not tied to the dollar. this is not tied to crude oil. this is a supply/demand story that and the demand side is tied to mother nature. last time this year we were dealing with polar vortex and cold winter. this time we're talking christmas day could be 60 degrees and that is what is sending prices down. i want to touch on a couple points. last year at this time we were seeing a pattern of withdraws that was much steeper and we also had our stocks about 5% lower than where they are right now but because we're not expecting that cold winter to materialize we'll probably balance out and be okay. i want to bring this back to gas prices. retail gas pr

jackie deangelis. >>> apple upped by citi this morning.r analyst jim sueva says there are things missing from consensus and joins us from 30 rock. good to have you again. >> good to see you today. >> sounds like you're talking about purchasing trends in terms of memory. people graduating up to the 128 where they might have bought the 64 before. >> that's exactly right. with a better camera, better resolution people are finding it more suitable to buy the 64 and 128 gig models. this means higher sales and profitability for apple. we think the shares go higher. >> walk us through -- give us numbers. how much does that benefit them versus what we pay at the store. >> very important question. so it's at least $200 more on average we believe from the low end to the high end and we believe apple has over 50% gross margins for this trade up. therefore you can see if you instead buy the higher instead of lower end models it's profitable for apple. >> are you sure this isn't priced in? because we saw when they came out with these models the way the

jackie deangelis for us this morning. >> good morning.lling pressure in the pits today as we go into new year's eve. wti at 52.64. brent prices near $56. seeing a lot more selling as we head into 2015 here. two things to add to this in addition to the regular supply/demand story everyone is worried about. some china numbers trickling into the marketplace yesterday about the factory sector shrinking. that has people worried about demand going into next year. also, that inventory data. we get the api data out the night before. we saw a build, and people are expecting the department of energy to report the same thing. this is very significant. it is the first december since 2005 that we could potentially see a build in crude inventoryies in december. that's really sort of upsetting a trend that we haven't seen in many years. but again, people are going to be watching these numbers very closely. we do think we're going to stay over 50 but see more pressure in january in terms of the wti price. this brent price is really on a roll here. but pr

jackie deangelis has more. >> reporter: natural gas prices continue to plummet, a near 30% drop since last year and another leg down today closing in on $3. the action in nat gas is a supply -- demand story. but mother nature controlling demand and so far she's been on our side. this time last year we were talking about the polar vortex, now we're talking about 50-degree temperatures on the east coast on christmas. >> everything comes down to weather in natural gas. it's been very mild. they're predicting in the short-term future here that it's going to stay mild, and with the north american shale production predominantly the appalachian gas, there is a lot of it. there's a big glut of it right now. >> reporter: the natural gas story with declines in propane in ten year lows and consumers will be paying a lot less to heat their homes this winter, then there's the decline in retail gas prices. consumers getting a big gift from the energy complex this year. aaa saying the national average 2.35, 89 cents lower than a year ago. low prices for gasoline are helping consumers to save more th

so with us, don shoe and jackie deangelis on energy. happy holidays, welcome. don, sum it up in a few seconds. >> with the market, we've hit record highs upon record highs. so as we look at what's happening in 2014, the bull run was in tact but this time around, it wasn't so much a lot of the technology names we talked about before. it was health care that was a real driver for the market this time around. those stocks, biotechnology, pharmaceuticals alike, a lot of deal making like you said drove that to be the best performing in the s&p 500. with the record highs, a lot of investors calling to question whether or not they can sustain that going into 2015. of course, the trend has been positive for a lot of them so far. >> when you look at the sectors, almost all of them higher except the one you follow most closely which is energy and were not for oil prices -- >> a huge drag, of course. >> huge drag. a lot of factors we talked about in the piece. is it as simple as that? >> it really is as simple as that. i don't think investors were expecting energy to be t

thanks so much, jackie deangelis.n we come back, auto nation ceo mike jackson on the sales picture for the country's largest car retailer as we head deeper into holiday shopping season. later this morning, a big summit meeting. the president will address the ceos of the business round table on the state of the economy. we'll bring you live coverage and the q&a when "squawk on the street" continues. (vo) rush hour around here starts at 6:30 a.m. - on the nose. but for me, it starts with the opening bell. and the rush i get, lasts way more than an hour. (announcer) at scottrade, we share your passion for trading. that's why we've built powerful technology to alert you to your next opportunity. because at scottrade, our passion is to power yours. because it helps me skip the bad stuff. i'm good. that's what i like to call, the meta effect. 4-in-1 multi-health metamucil now clinically proven to help you feel less hungry between meals. experience the meta effect with our new multi-health wellness line. ♪ my baby drove up i

jackie deangelis. oil one factor in the struggling russian economy. earlier today, russia prime minister warning of a deep recession and standard & poor's put them on credit watch negative. >> joining us now from what it may mean for the u.s. and markets, eamon javers and a visiting fellow at the peterson institute, as well. gentlemen, welcome. eamon, news on that, as well. announced the creation of this eur-asian economic union. comes inauspicious time, i guess. >> reporter: that's right. one of the ironies is the white house is criticized over a couple of months here from folks saying that the sanctions we put on russia haven't had any impact and now you see washington start to do is think about the possibility of catastrophic success here with those sanctions. that is the goal of sanctions is to get putin to change his behavior vis-a-vis the crew ukraine and every everywhere else but will he do that or radicalize him? do you get the outcome that you were looking for putting the sanctions in in the first place and that's a thing to think about here

jackie deangelis at the nymex. >> before the market opened, we did see crude prices higher.llar today. seeing technical buying. after we hit five-year lows and saw a dramatic sell-off yesterday. you have a steep decline in the bough today. oil prices are down. wti trading $62.78. some traders saying we could potentially go higher from here. if we get over $63.10 we take off to $64. if we close under $63 today, that will be significant to the down side. brent prices now $65.83. watching the overnight low of $65.29. some issues adding pressure here of what we are seeing overseas, rumors hitting the market iraq discounted its oil to asia by $4. saudi arabia discounting last week. opec not cutting supply it's not a surprise to see price discounts. there was talk this morning, have we hit a bottom? we could see a few volatile weeks ahead. i want to talk about gold prices. last i checked we had a $25 pop on our hands. over 1,200 today. a six-week high for gold. concerns over europe are getting buyers back in. you see people rotating out of equities and crude. gold seems to be a sa

i'm jackie deangelis from the nymex.as inventories, withdrawal of 64 billion cubic feet was on the high side of estimates. prices $3.75 before the report. last year this time we saw withdrawal of 256 billion cubic feet. a lot steeper. remember last year was a lot colder. we had a polar vortex on our hands. cold temperature is not materializing the way people thought they would by this point of the year. demand is picking up slowly. these prices are depressed. down 14% in the last month alone for nat gas. unless it gets colder from here, we probably won't see these prices above $4 any time soon. mother nature could be cruel around christmas time. back to you. >> we know that too well. thank you so much. it's about an hour into trading. oracle is the biggest gainer on the s&p up 8%. the company posting better than expected quarterly results led by strength in its cloud business. conagra the biggest loser down 4% on a quarterly miss. hurt by weaker demand for branded foods. average rate on the 30-year fix fell last week to

let's check in on the oil and jackie deangelis. >> a very volatile session.e are looking at wti up nine cents. we have a bid at 53.71. it is not that significant in the scheme of everything we have seen. most traders are saying this is just a technical bounce. this is normal and we see this selling pressure for such an extended period of time. at the end of the day this still continues to be a supply and demand story. at the same time supply is still robust and demand is not materializing the way that we thought it to be. the geo political rift we saw in libya and earlier photos of protests in russia showing traders aren't taking events too seriously. it will have to be really significant to get the oil price higher. we are looking at brent price under 60. remember a while back saudi arabia said we will let it drop to 60. that doesn't seem to be the case. you ha we are not cutting production. prices are dropping. they will try to force u.s. shale producers to cut their production and we are seeing evidence of that anecdotally just the other day. we are seeing

jackie deangelis has the details. >> seeing strength across the board. more than 1% bounce for gold getting over the crucial mark. seeing silver copper and platinum up. a couple of things happening. first uncertainty in greece and larger eurozone bringing safe haven buying into play. we saw pictures of the protests in russia. that is bringing buyers into the table here. short covering coming out of asia. last minute window dressing, as well. you have a little bit of a weaker dollar against a basket of currencies helping to traders saying this is probably a short-lived rally. back to you. >>> we are down 51 points on the dow. let's get a market flash from dominic chu. >> let's keep on that gold theme. the miners are following gold prices even as the post of modest losses. the 4% gain today. barrick gold so again very big strength or a lot of strength for gold miners. back over to you. >> let's have a look at where we are on the bond markets. just pick up the argument. last week we were at 2.3% on the ten year. we have fallen substantially in just three tr

i'm jackie deangelis.h session lows today after the department of energy released its inventory report. we got a build of 7.3 million barrels last week in crude. we got a build in gasoline of 4.1 million barrels. obviously very bearish numbers, sending crude to 55.26 right now, down almost $2 on the session today, guys. so watch these numbers as we head into the holiday. could see a little bit more selling pressure. back to you. >> all right, jackie. thanks so much. about an hour into trading. some of the stories we're watching this morning. shares is of cal-maine foods down 6%. the nation's largest egg producer posting a quarterly earnings miss. novo nordisk rising 2%, getting fda approval for its injectable obesity medication. and the 30 year now at 3.83. also, it is a shortened trading day today. the nyse and nasdaq will close at 1:00 p.m. eastern time. >> sony delivering an early christmas present to comedy fans, deciding it's going to release its controversial film "the interview" tomorrow in more tha

jackie deangelis standing by. ly strong day for oil today, jackie. >> absolutely right, mandy and short covering lifting prices today and bob mentioned the expiration. you have the january contract come off the board. member closing over $57. a dollar to the upside actually just in the last hour of trade. and what traders are thinking about right now is are we starting to stabilize here? at least temporarily. you know, a month ago, the saudi arabians said they thought oil, brent that is, would stabilize around $60. the levels we are seeing right now and yesterday said the price declines temporary, as well and boosted the market and seems to be a little bit of confidence here in some buying into that february contract. at the same time, on the flip side, traders say you have a dollar index at 89 and continues to strengthen. that could present a little bit more downside for crude and not out of the question that we could stabilize temporarily here. meantime, bob mentioned the keystone pipeline comments from the presi

i'm jackie deangelis reporting from the floor from the nimex.eekly crude inventory report. the department reporting a build of 1.5 million barrels. not too shocking considering the fact that the api data last night was bearish as well. prices right now 61.60 on west texas intermediate, down $2.25. looking at brent prices. under 65. 64.85, down almost $2. a couple things to think about. some nuggets out from opec. first of all, revising downward its 20 15 demand estimates. bearish for crude. you have the eia trimming its u.s. production forecast for 2015. a slight trim. still over 9 million barrels. that's a strong, robust number for u.s. production next year. i also want to talk about the idea that we've got goodrich petroleum saying it's selling part of its shale assets to boost lick wiquiditliquidity. look for other small producers to make similar moves. again, the prices right now, 61.70, down more than $2 on wti. back to you. >> all right. thanks very much, jackie deangelis. i want to stay on energy as well. my next guest runs the largest pr

jackie deangelis with a special report on energy coming up. >>> live poll is now open.f you have a holiday gift budget to stick to this year. we roowant to know. find out why someone says it's okay, encouraged even, to overspend for gifts. overspend. controversial advice for sure when we come back. in this accident... because there was no accident. volvo's most advanced accident avoidance systems ever. the future of safety, from the company that has always brought you the future of safety. give the gift of volvo this season and we'll give you your first month's payment us. outside of the nasdaq, where we bring you live daily market updates. and today, we have a very special free gift for you. so many viewers e-mail us wanting to know our secrets on how we trade options. so we put our secrets into a new book. and if you're one of the first 250 people to call in right now and just cover shipping and handling, we'll send you a copy for free. look at the rate of return we've made on some of our recent options trades, versus what we would have made had we just bought the sto

jackie deangelis at the nymex. >> that's right. of news impacting oil prices, head of opec out over the weekend talking about production levels, saying that there was consensus among ministers when they did not cut production, perhaps setting the stage also for the march opec meeting. so everybody's watching that closely. but that sent brent crude down to fresh five-year lows, just about $60. we are rebounding now, 62.23. on this side of the atlantic, having a tough time staying positive, 57.45 where he are now. do want to talk about gasoline, national average for gas, according to aaa, 2.54 close to that 2.50 mark. back to you. jackie deangelis. coming up, dick weil on luring bill gross into the field. an exclusive with bill gross, the manager's first television interview since leaving pimco. brian sullivan 2:00 p.m. eastern time. dow's up 86. you trade with fidelity. one you won't find anywhere else. one-second trade execution. guaranteed. did you see it? in one second, he made a trade, we looked for the best price, and the trade

let's get to jackie deangelis. are people talking about a potential bottoming process?: let's get to that in a moment. $67.28 down $1.72. we had a 4% plus move yesterday. when that happens you will get momentum and get technicals selling to the down side. that is what we are seeing. yo ahave a dollar index 88 handle in change and that will impact oil prices to the down side, as well. with respect to your question about a bottom we have a lot of different views but the traders in the pits who have watched crude prices are looking back to 2009. they are looking at that low of $33 and saying this time it could potentially be worse. of course, the question would be how quickly we do get there. i do want to talk about the pump prices that you mentioned. mandy mentioned it $2.76 for a gallon of regular. that is the national average down 50 cents from a year ago. i want to highlight that 42 states are under $3 at this point. that is just an average. you look at certain states like florida they are down 68 sents from last year. virginia down 61 cents. there is going to be a tri

jackie deangelis is covering this story for us. >> that's exactly right.rail conversation coming at a time when oil prices are collapsing here. investors are looking for ways to play energy right now to the down side for 2015 if these price declines continue. in terms of rail ihs is estimating we see shipments of 1.1 million barrels of crude per day for 2014. that would be the average. that is a staggering increase from 2009 when we were shipping 20,000 barrels a day on rail. that gives you a little perspective of how far we have come. analysts really like the rail industry because as u.s. production is ramping over 9 million barrels a day, very close to saudi arabia's output the rail plays are better than pipeline plays because pipeline capacity just isn't there. plunging crude prices good for them because it brings costs down and those who say energy companies shipping will ask for discounts. the analysts say margins can withstand it. when you consider what we are seeing with big producers right now the price declines year to date almost 20% on some of t

jackie deangelis is with us. >> good morning.e're lower on both sides of the atlantic this morning. looking at prices at 55.08 right now, off of session lows today. intraday low was 54.21. yesterday's intraday low, 53.60. sentiment right now according to the traders is downward. we did get a bearish api report last night on weekly inventories. we're waiting for that d.o.e. number at 10:30. that's what traders are watching right now. as long as there's no change in the supply/demand equation, we're expecting these prices to go down. of course, the opec daily basket price, 55.91. that's a bit of a leading indicator. meantime, gas prices continue to fall. according to aaa, $2.51 today, down 71 cents from last year. substantial move there. of course, it's a fed day. we're going to be watching the fed, what it says and what impact that has on the dollar. guys, back to you. >> all right. thanks very much, jackie. let's now head to the bond pits. rick santelli is at the cme group in chicago. >> thanks, david. i don't know if study is th

jackie deangelis joining us with your trade and why oil has been sliding so much lately. >> good afternoon to you. several reasons for this. let's review our price action. we are looking at wti at 60.73. we hit 60.43 today. we haven't seen that since july 16 of 2009. part of the problem is opec trimming demand forecast for 2015. we know from the last opec meeting they didn't cut production. meantime the doe reported this morning that we saw build in crude oil inventories 1.5 million barrels. gasoline build 8 million barrels going back to crude saying there is not a lot of demand for pruk. energy department saying it is expecting retail gas prices to average $2.60 next year. aaa saying we are at an average of 2.63 right now. let me bring this back to you to the crude oil picture. traders in the pits were bottom fishing saying the bottom was at 70. now we are almost at $60 and people are saying i think we are going to hit 50 by january sometime. right now the sentiment is downward direction. we are definitely going lower. we may see pops on technicals within the next few days because people

let's go to jackie deangelis. part of the issue also for the kmacommodities sector.s a lot in play. >> absolutely. let's start with pricing right now. very deep slides driving the equity market down. we are looking at wti and brent. wti trading at 63 and change. brent 66 and change. a lot of traders telling me they do not want to be caught here trying to call a bottom because the momentum now that we have hit technical levels is to the down side. this could get pretty ugly. morgan stanley saying it is bringing the target down to 70 for 2014. you are absolutely right to point to the dollar, too. back to you. >> thank you very much. >>> the nasdaq took a dive just a few minutes ago. art cashin putting in his note that it kind of fell off a cliff. let's goto bertha coombs. >> you look at some of the usual suspects often the most volatile. when it is time to sell people hit the sell button. go pro now off 6.25%. tesla, netflix, these are names that when there is a sell off get hit hard and are leading the way down. apple is the big one with its massive market cap and des

let's get to jackie deangelis. a big part of the story -- going together like peanut butter and chocolate. >> not just yet for a bottom is what they are saying down here. we saw very volatile swings today. selling pressure in the morning and intraday low and traders saying options expiration had something to do with that. then we saw buying on the dip mentality. we did go back into positive territory. now we are off of session lows 55.78 down about 13 cents. brent crude is holding on to the five handle 59.75. pretty remarkable action here. in terms of how low we think we can go at this point traders are saying they are starting to look at 40s in january potentially. it could be rough going for oil. it is really difficult to say right now. bob brought up the fomc meeting. the action we see from the fed could impact the dollar. the dollar impacts the crude trade. i want to talk about gas prices because we are at $2.52 according to aaa. one saying he thinks we can see $2.39 by the end of the year. that is the national

even natural gas, jackie deangelis. >> we are seeing a little bit of bounce today. too excited. we are only talking about 47 krentz on wti. hanging around 55.97. brent crude slightly under 60. expect to see these levels throughout the end of the year. what's really interesting about this rebound is clashes in libya are spurring it. that's the one wild card to the whole supply demand that's geopolitical. we did see an attack on one of the main export terminals in libya, endangering a couple of days of supplies for them. people are worried we could see more conflict in the new year. you would think something like this would send prices up a little bit more. also traders are telling me we are seeing a little short covering here. you did get the reduced growth number for china. the thought of this is that china might inject liquidity. that could move oil prices to the up side in the new year. these are the caveats the changes to the geopolitical climates and the change to the supply demand equation that could move these prices around. you talked about gas prices before.