We are starting to see a change in consumer behavior. Consumers are cutting back because of high prices, rising interest rates and signs that the housing bubble is ending. Prices have probably begun the long steady process of grinding lower.
Repairs are proceeding apace. Discretionary driving can be cut back but you have got to heat your house. Heating oil will soon lead the market.
There was a lot of panic yesterday as we all thought about the worst possible scenarios. The likelihood is that the worst won't occur.
The mild weather and contracting demand are continuing to send us lower. Crude oil will soon test $56 and the products $1.50.
These two guys are never going to admit in a million years they killed anybody.
I can't see the lost production being restored fast enough to reverse prices.
The weather is cooperating and helping us replenish supplies. The speculative frenzy that followed the hurricanes has cooled down. Lower refinery operating rates have led to rising crude-oil stocks as products have arrived from elsewhere.
The effects of Katrina will be felt throughout the economy, reducing demand and keeping a lid on energy prices. The federal government is ready to release barrels from the Strategic Petroleum Reserve and there is significant help coming from abroad.
Copyright © 2024 Electric Goat Media. All Rights Reserved.