When we consider Iran, Nigeria and now the tape from Bin Laden, the terror premium must be put back into the price. |
When you put that all together, I think we may have weathered this storm, ... But another hurricane would be nerve-wracking. |
With another blast of cold weather headed to us this week, we may have seen the lows (in crude prices). |
With Iran, Nigeria and now the bin Laden tape, it definitely increases the risk to be long on oil. |
With less than 2.0 million barrels of spare production capacity, even with higher-than-average supply of oil, the margin of error in the world oil market has never been thinner. And with worries about possible supply disruptions in Iran, Nigeria and Venezuela and another hurricane season ahead of us, traders are betting that it's likely something is going to go wrong. |
With the economy being strong and prices gradually going higher, when we see three dollars a gallon, it's not going to have that same detrimental effect. |
With the economy bouncing back, there's good demand for energy. |
Worries about the weather are so last year. Now the focus is turning to tight gasoline supplies. The market has priced in a mild winter so if we do get change to cold, the reaction will be explosive. |
Yesterday was a mad rush, and today, cooler heads are prevailing a little bit. Obviously the market is extremely concerned about potential of Rita to cause damage, but she hasn't caused any yet. |
Yesterday we had the big sell-off and we tried to come back a little bit. |
You are going to see gasoline prices higher than you saw with Katrina, ... Enjoy the prices that you have while you can. |
You worry about the oil that's going to feed that spurt. |
You're not going to fall down dramatically overnight - gasoline prices will start heading back down in a couple of weeks. |
You're not going to worry too much about supplies. You're going into the summer season with record storage. |
You're seeing some back and forth movement because after three straight up days, there's a strong tendency to take profits. But any prolonged labor disruption in Nigeria would be devastating. |