Re: Transformation problem
On Sep 19, 2006, at 4:48 PM, Charles Brown wrote:
Gasoline prices are falling very fast. Is this a supply and demand
thing ?
Not really - it’s some of the speculative froth getting blown away.
One big hedge fund has already taken losses in natural gas, and no
doubt there’s more to come. The supply/demand situation has been
tight, there was Katrina, and there’s a lot of what markets call
political risk, but all that together would justify a crude price of
maybe $50/barrel, not the $75 we saw a few weeks ago.
Doug