G. L. Turner

Oil to Retest $40/Barrel by Year-End?

Let's go back to Fundamentals, GUYS!

Remember last mid-spring in Congress, the top US OIL Execs adn Shell and BP US, testified that they were quite pleased with oil at $65...they coule drill and refine adn make money...OIL was @ $90-95 at the time, and climbing. (In later hearings, when the Reps really didn't want the Spot Limits and sunlight to fall on Gov Sachs' actions, they raised the price range to about $90..."cause of Iran tensions and the dollar".

60 to 90 days later, it was headed back to the $65 range...

The Saudis told Bush in January 2008, when oil was moving through $75 towards $90, (round 2), that he needed NOT to ask them to pump more - there was not a shortage! Rather, it was "OUR FINANCIAL SPECULATORS" that were driving the prices up...BUSH scoffed, and they rightly sent him home, empty-handed. You got that, the Saudis told us that we had already run the price up too much...adn that if we didn't turn the problem around, we were headed for a global recession (geez, how many times that I write that?) --- But, now, only housing could cause recessions....

Iran, Russia and Bush played a 'comment/speculation' game using 'threatening comments' on the world stage all spring, when things were quiet, CBNC, a shill for the Reps and GS/JPM, taking their cue from Gov Sachs, kept telling us the dollar was weak and that OIL needed to be higher. That China and India, who statistically did not 'move markets' were moving them in earth shakeningly ways...

So, we let these Greed Meisters wet the appetites of OPEC, Russia and Vene, and we trained them to like the taste of $75 - $80 OIL. So, now, by using our only tool - a torn and battered economy, can we wean them of those price ranges, and get the reality of $65 OIL back into the global economy...

When we stop letting those who 'control' without regrds to the damage their greed causes, we will see our economy rebound and prosperity return...In the meantime, it has/is relocating to the East!
GT

Fed Dampens Summer Crude Trade

Stephen,

You seem to omit the effects of manipulative trading that the US Big Oil cartel and the Government Sachs 'analysts'/traders/sto... have on this spring's overzealous oil and RBOB futures. They tried to once again "create a bubble"...since they got away with it so well last year and think that it will be next year before the Obama Admin gets any amount of regs in place, therefore they see this as an area that they can control and win at on many levels...

The reality is, though, they have turned the recovery around quickly, and to their own detriment, as demand, already soft, has fallen even further due to much of a price run-up. At some point, they, or those they suck into these false trades, will get burned enough, that they will go away and leave the oil/gas market to the producers and users...and sanity and reasonable pricing will return.