Crude Trades Below $85 and There is not Much Stopping it From Continuing the Slide

Crude slips below the $85 level and Peter Amandio tells TheStreet’s Jill Malandrino it can go lower, a lot lower. Amandio references oil and the U.S. dollar in 2008, especially when we have a different supply situation in terms of North America significantly dialing up production. In addition, Kuwait's Oil Minister said there is no chance OPEC would reduce production and Iraq said it would discount, but not cut back either. Malandrino points out that out of the 8.5 million jobs that have been created since 2008, 1 million of them are in the oil and gas sector, if oil gets to that $80 level, or lower, companies with over-leveraged balance sheets and underperforming assets will not make it. Amandio agrees and cautions on the producers and refining stocks because the spread between prices at the pump versus crude oil price are key to their profitability.