The potential supply disruption risk premium has already been built into the price and because there really is no immediate threat to supply ... prices are correcting downwards. |
The pullback appears to be due to profit-taking, which is not surprising considering prices have really surged in the past few days. The decline will not be large because the Iranian issue is keeping a high floor under prices. |
The release of crude out of the Strategic Petroleum Reserve is not as critical as making sure that there is enough refined product supply and that there are refineries to process the crude. |
The threat to supply disruption is keeping traders edgy. |
The traders are simply taking profits. They want to lock-in their gains before the inventory report comes out on Wednesday. |
The tropical depression is certainly within the radar screens of traders, though it seems to be too early to tell whether it would develop into a storm, and its direction. |
There is certainly the possibility (of prices hitting 70 dollars). The recent events have attracted speculators and oil has become a lot like an investment. |
There is certainly the possibility (of prices hitting USD70). The recent events have attracted speculators and oil has become a lot like an investment. |
There is momentum for a retreat in the oil pricing as the focus of the market is on the bearish fundamentals. |
There is no fundamental reason driving prices back up. Market participants felt that the 60 dollar level is an important mark and dropping below 60 is too much of a fall. |
There is quite a bit of uncertainty [in Iran] that could go either way. It's not going to be settled anytime soon, so it's providing a high floor to pricing. |
There's a lot of market talk about whether we're going to hit the psychological 65 dollars a barrel mark or even 70 dollars in the near future. I think it will depend on how the geopolitical problems are played out. |
There's not a whole lot of movement in the market today. I think the crude market will watch for the two meetings this week. |
These elements will keep attracting speculative elements into the market and keep a high floor for crude. |
They must have worked out some agreement between them to resolve the pricing dispute. |