We have been getting a massive injection (of investment fund money) in the energy markets. It is very clear from the price action that they haven't stopped.
People dare not price in the surpluses they see.
We continue to see fund action. They are coming in across the basket of commodities.
The question is organizational control.
The Iranian situation is making us all very nervous... We don't seem to be getting anywhere on the diplomatic solutions.
This week, it's a gasoline story.
We've gone from comfortable U.S. gasoline stocks to average and seem to be heading very clearly toward the low of the range. The market is worried about that.
The question is where to set our sights next. The only cap I see coming up is on the order of $85 a barrel -- something equivalent in real terms to the highest we saw.
It is pretty clear that we can break $70 without too much problem.
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