Gasoline continues plunge; crude tumbles below $60

HOUSTON (AP) — Retail gasoline prices dipped for a 17th week since July 4, falling below $2 a gallon in a number of states and approaching $1.50 at some service stations. The price of crude fell again too, hitting a 20-month low.

I'm trying to explain to myself the reason for the persistent decline in the price of Falcon and for sure the falling gas prices has to be factored in and whether the costs associated with an unconventional play makes the project more risk-adverse in light of current market prices. Associated to that, one can attribute the the scarcity of liquidity, withdrawal of hedge funds on the market etc to explain the reluctance of new investors to the Falcon project.

However Burlingame asset management is accumulating its investment in the company together with the russian investors from their vehicle in Switzerland. I believe these guys are no amateurs and in reading the analyst report from Macquarie this play has immense potential for the long term.

So the question is whether to accumulate at these low prices or hold still which I believe many are doing. Anyone care to add their comments to this ?