TELL ME SOMETHING GOOD...PLEASE!

Prices across the energy complex keep tumbling as participants cast their votes in the negative about potential recovery's effect on demand growth; in short, it will be minimal. Where every bit of data was spun in the affirmative in Q1 '09, just the opposite is true now casting a pall over the entire market.

Call it "double-dip" or deflation there are few painting a rosy picture. Price have fallen by 8% in the past two weeks acknowledging sluggish global economic growth. A slight rebound on Tuesday was followed by disappointment as stockpile reports disappointed, and the market hardly looked back.

A rising dollar, which makes oil more expensive for non-dollar denominated economies, and less than hopeful economic data complete a dismal picture. The increase in supplies may prompt OPEC to clamp down on members exceeding their quotas.

Prices significantly below $70 may prompt them into making real cuts in production. But the market needs good news on the economic front, and fast, before a realistic hope for demand growth can take hold.

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