Andy Sutton

Barron's Banks on $100 Oil

Barron's argument loses a lot of credibility when they talk about the Fed's pledge to fight inflation. This is laughable. The Fed creates the inflation. Willingly and without pause; moral or otherwise.

There is an awful lot of talking going on right now with regards to oil and the Dollar. Neither is having much of an effect as of June. US demand has not decreased by even a significant amount, and if we were to see a crash in US demand, our problems would be much larger than oil.

The only problem I see with Valero's CEO assessment is that if he is right, then we should be seeing a glut in the producer areas since refineries aren't stockpiling. We aren't seeing that reported anywhere..

Count on an increase of shenanigans, but unfortunately, I'm dubious of a sustained decrease in prices.