Demand is better than expected. A gallon of regular unleaded gasoline is now under $2 a gallon in some areas, which is a nice drop from over $3 not long ago. This is improving sentiment and giving folks a few more dollars to spend on the holidays. |
I don't know where the rally ends. There's nothing on the horizon that points to a substantial fall in prices. It takes time for a supply response to occur. |
The geopolitical situation and the switch to ethanol are aligning to keep prices high. If prices drop by a third we'll be looking at $50, which wouldn't have been a bargain a couple years ago. |
The reaction to the IEA report points to how jittery the market is. Given what the system went through you can expect these moves. Supplies are still pretty tight. |
The reaction to the IEA report points to how jittery the market is. Given what the system went through you can expect these moves. Supplies are still pretty tight. |
Underlying the rise in prices is a strong world economy. The IEA is showing that demand continues to grow. We haven't seen the demand destruction that was expected to occur after prices jumped. |
Underlying the rise in prices is a strong world economy. The IEA is showing that demand continues to grow. We haven't seen the demand destruction that was expected to occur after prices jumped. |