On Sep 19, 2006, at 5:12 PM, Chuck wrote:
> Doug Henwood wrote:
>> On Sep 19, 2006, at 4:48 PM, Charles Brown wrote:
>>> Gasoline prices are falling very fast. Is this a supply and
>>> demand thing ?
>> Not really - it's some of the speculative froth getting blown
>> away. One big hedge fund has already taken losses in natural gas,
>> and no doubt there's more to come. The supply/demand situation
>> has been tight, there was Katrina, and there's a lot of what
>> markets call political risk, but all that together would justify
>> a crude price of maybe $50/barrel, not the $75 we saw a few weeks
>> ago.
>
> Any predictions about when prices will go up again?
Ha. If I knew, I'd be sitting at a trading desk and not giving the info away!
I think it's not impossible that we've seen a peak in oil prices for a while. If the hedge funds start selling, we could see another $20 come off the oil price in a matter of weeks. But who knows.
Of course, if the U.S. attacks Iran, the scratch the previous two paragraphs.
Doug