On Oct 7, 2006, at 11:22 AM, Marvin Gandall wrote:
> Who knows? Goldman Sachs was a) either speculating that energy
> prices would
> fall because of geopolitical, cyclical, and seasonal reasons or b) it
> genuinely fears the Democrats more than the Republicans.
Chuck Schumer has been raising buckets of money from Wall Street for the Dems this election cycle. As is often the case, WS sees the handwriting on the wall and wants to back a potential winner. In any case, there's not much fear of the Dems on the Street. And at least a substantial minority of Wall Street is not happy with the Bush regime.
On the original topic, I don't get how changing the weighting of gasoline in the GS commodity index would affect the crude oil price, which is $15 off its highs. It might affect the relation between gas and crude prices, but no more. Maybe I'm missing something.
Doug