It looks like the perfect storm to drive prices up. |
It's a lingering fear [in Nigeria], so even though it is sort of old news, the market is concerned about it. |
It's a little pullback from the record last Friday. |
It's not only the suspension of production that's causing concern, it's the fact that we could see potential damage to the platforms, which would cause longer disruptions to production. |
It's possible that as the summer driving season gets closer, just like last year, traders will focus more and more on products. |
It's reacting to the US energy department report. |
It's the geopolitical fear factor that's driving the market now, |
Louisiana refineries can process that, but they are shut down. |
Natural gas is shooting off the charts. We are entering into winter and refineries need to build up heating oil inventories but its a problem when storms keep key facilities shut. |
Natural gas pricing is an immediate telltale sign of the winter situation: it is fairly mild, and this is likely to impact heating oil and crude demand as well. |
Nigeria and Iran are the main driving concerns ... the correction in the market today is likely to be limited because of lingering supply concerns. |
Nigeria and Iran are the main driving concerns. |
Nobody knows what to expect next. That's why the crude market is apprehensive. |
Once the psychological level of 70 dollars was breached, there was momentum which spurred fresh buying. Passing the 70.85 dollar level is inevitable. |
Overall pricing is still high... but it's not going to surge to 70 or beyond just yet. |