At a certain price, Americans say, 'Okay, I'm not going to drive anymore' or, 'This is getting too expensive to heat my home this way. I have to switch to another fuel.' ... When that does happen, demand will curtail and prices will retreat. |
Nov. 15 through April is 100% about demand. |
Supplies seems absolutely adequate, but political problems are not. As you get closer to the weekend, people are more concerned about geopolitical issues. |
That's how the average person is getting involved (in oil futures). You don't see the dentist from Des Moines buying 100 contracts. It's like buying shares in a mutual fund. |
You have to look at the trend, not weekly data. One cargo hits the shore and can skew the numbers by 5 to 7 million barrels. |