Re: Transformation problem
On Sep 19, 2006, at 5:12 PM, Chuck wrote:
Doug Henwood wrote:
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.Any predictions about when prices will go up again?
Ha. If I knew, I’d be sitting at a trading desk and not giving the
info away!
I think it’s not impossible that we’ve seen a peak in oil prices for
a while. If the hedge funds start selling, we could see another $20
come off the oil price in a matter of weeks. But who knows.
Of course, if the U.S. attacks Iran, the scratch the previous two
paragraphs.
Doug