Falling Oil Prices: Fact or Fiction?
Early in the the year oil prices were high and oil stocks were poised to pop. Now analysts are saying different. Media is telling us that oil is going to drop, but where is this reasoning coming from? Is there legitimate information to back up these predictions? Timothy Siegel give some explanation for these assumptions, but also disagrees with them. …The price of crude has recently bumped downward by a good 15%. This is likely due to four factors: 1. Rise in absolute inventory levels in this week’s EIA Inventory Report(released Wednesday at 10:30 AM EDT). 2. The killing of Osama bin Laden. 3. Word from a variety of sources, including MasterCard and the EIA that gasoline demand has fallen relative to its levels of last year. 4. Commodities speculators reducing positions because they have been put under pressure from declining silver and gold prices. Find additional research here: http://turnkeyoil.com/2011/05/19/falling-oil-prices-fact-or-fiction/
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