Kezorm

Insiders Preparing for Major Drop in Oil Prices

Forgive this paltry submission to an otherwise worthy pile of messages, but if you look at long term crude oil demand in the USA versus season, there are strong variations and we are at a local minima (third week of July) and set to see demand climb as refiners build inventories and increase demand until the end of September. Surely this is only one variable among many, but didn't the Saudi's, Libyans and other promise or threaten to slash supply if crude neared $100? And didn't the Russians just increase their export tariff to $70/bbl? Another factor is this. IF gasoline prices fell to $3.50/gallon, there would be alot of folks "escaping to Wisconsin" in their SUV's. That is the flip side of destroyed demand - it comes right back if prices fall.