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Crude Oil and Gasoline Prices: Like Déjà Vu All Over Again

You might want to check out some of this writer's previous articles. Looks as if he is "well acquainted" with oil production and this industry and more informed than others I have read on this site.


On Oct 08 07:04 PM Saildog wrote:

> This is article was written by somebody not well acquainted with
> oil production. All the usual stuff is in their about price, markets
> and technology; and its all rubbish, since oil production has already
> peaked. Now the rules are different. With a supply curve that is
> completely inelastic, price is determined by demand only; and that
> in turn is driven by economic activity. The oil price and economic
> activity will settle into a new relationship that will remain tightly
> bound. As oil production drifts down and absorbs ever more inputs,
> our economies will shrink accordingly. Of course it will be patchy
> and variable around the world. Some places with energy resources
> will do better and others without will do worse. But overall, Business
> As Usual is finished. Welcome to The Longest Recession.

Prepare for a Drop in Diesel and Gasoline Prices

Looks like we have a bunch of bulls in oil. At some time fundamentals will trump the "investment" money chasing this space and Bob's forecast will be a reality.

Hoping Regions Financial Runs Up Again

RF is up 30% from last Thursday and over 100% from the middle of July. The market is anticpating that Congress will approve this bail out so I beleive that "sell the news" will be the reaction.

RF will see $10 before it sees $17. And that is without the shorts in the market.