k9s-4-k8

Back to the Future for U.S. Oil Refiners

"Crude oil prices should not go below $40 a barrel for the time being without the threat of an oil workers strike looming over the horizon."
I think you meant to say 'above $40'

60 Minutes on Oil: Did Anyone Verify Anything?

Your post reads as one who has had one too many beers.


On Jan 12 12:45 PM CaptainJJack wrote:

> That should have read "BETTER" rather than "beer", although beer
> ideas are good, too

60 Minutes on Oil: Did Anyone Verify Anything?

Exactly! Its not so much about current supply and demand as it is about what speculators expect going forward regarding supply and demand. Current supply and demand only figures in as far as how it affects expectations for the future. This is why we can see such a swing with only small to moderate changes in the actual reported current supply and demand picture. We can expect over correcting both ways which lends credibility to a partial reversal with every big move.


On Jan 12 08:51 AM huangjin wrote:

> Markets work on expectations, not the current supply and demand.
> People believed supply would not meet demand, and the price reflected
> their beliefs. This is why current supply and demand is not always
> the whole picture. Was oil at $147 ridiculous, and a bubble? Sure.
> But speculators cannot control reality, and they lost billions with
> their bets. And the reason oil fell so far is because the economy
> has imploded. Oil speculators lost because they pushed prices too
> far, and they failed to consider a massive drop in demand.
>
>