West Texas Intermediate crude oil hit about $38.50 per barrel this morning, though it is up about 18 cents since. Even at the higher price this is still a new low in this cycle, which topped out, intraday, at about 109 dollars a year ago - a 65 percent loss.

Over the same period of time, copper has lost about 30 percent of it's value. The comparison is important, because as engergy costs fall, profit margins for miners rise.

What's behind this drop? Saudi's announced this morning they are removing oil production limits. Sounds like desperation to keep the revenue flowing at all costs, profit or not.

I can't see the price of copper falling too much from here, if at all, but as I posted in recent weeks, some analysts are looking for oil to drop into the upper 20 dollar range, another third down from here. ...don't know if that will happen, but if it does, that's another third down from here.

VP