Seeking Alpha

yank » Comments » CME

  • Prepare for a Drop in Diesel and Gasoline Prices [View article]
    Bob:
    Wow. You are trying real hard to talk oil prices down. Unfortunately it will take a lot more than that to reduce the price of crude. One point to remember is that crude prices are not determined by what demand WAS during this past summer, this past Labor Day, blah, blah, blah. Crude prices are moving higher because traders believe we have turned the corner on this recession and 2010 will see growth returning to our GDP. That may or may not prove to be the correct call. The other part of the rise as you know is due to US Dollar (USD) weakness. Once again we are surrounded by "hand wringers" that forecast continued deflation and a flight to safety, thereby bolstering the USD. Sad to say it, but that trade is getting a bit old. Investors have decided that the USD is the new "carry trade" replacing the Japanese Yen. Continued monetization of US debt (as foreigner's appetite for US Treasuries wanes) adds even more weakness to the USD. All in all, I think your dream of $40 oil is nothing more than that. A dream.

    Yank
    Sep 21 09:54 am |Rating: +3 -3 |Link to Comment
More on CME by yank
Comments by Ticker
AA, AAPL, AAV, ABB, ABX, ACE, ADS, AEM, AGG, AGU, AHC, AIG, ALTH, ALU, AMAT, AMSC, ANW, APA, APC, APD, APL, ATW, AU, AUY, AXP, BA, BAC, BGC, BHI, BHP, BIREF.PK, BJS, BK, BMO, BMY, BND, BNPQY.PK, BNS, BP, BPO, BRE, BRK.A, BTE, BTU, BWX, C, CADX, CAF, CAT, CF,
yank's
Comments Stats
226 comments
Rating: 178 (306 - 128 )