If we were able to reach a 'comfortable unease' on the Iranian situation, I think we'd see prices drop into the low $50s.
In fact, there is still quite a bit of inflationary pressure that producers need to mitigate to remain profitable.
In terms of expectations, the crude build was a bit of a surprise.
In terms of expectations, the crude build was a bit of a surprise. In theory, it should be mildly more bearish but right now with distillates it is the cold weather.
In the near term, the overall health of inventories is likely to be important.
In the short run, people's consumption is essentially fixed for gasoline. The biggest evidence of this is despite the fact we've got prices at $3, $4 or $5 a gallon, we've got consumers lining up to pay for it.
Is inflation dead? Not yet. If this moderating of inflationary pressures were to appear in the other reports, it could bode well for the economy.
It is conceivable that we could see $3 this summer.
It is typical to see a slight drop in utilization in the first week of the year. This slight drop, coupled with imports, could allow for a slight crude-inventory build.
It's going to hit consumers hard.
It's tough to blame (OPEC) for higher oil prices. I think they're doing what they can,
It's tough to blame (OPEC) for higher oil prices. I think they're doing what they can.
Markets were caught off-guard by a blow-out trade deficit, ... This could affect growth.
Massive inventory declines in crude oil are part of a three-month trend, heating oil prices continue their relentless rise, and the supply disruption premium is in full effect. This may only be the beginning; the winter oil bull run has begun.
mitigated some of the upward pressure on crude oil prices.
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