If prices jump another 5, I think it will give the Saudis a stronger hand, but continued weakness will give OPEC hawks more power.
We seemed to see some flight-to-quality buying in the bonds and gold, which seems to indicate traders' uneasiness with the (Iran) situation.
Refineries are squeezing out every gallon of gasoline possible, and theyre doing a good job of it. The problem is, its coming at the expense of the other products like heating oil.
These are very strong numbers. This is very good for the stock market. We saw it rally. It looks like it will continue to do so.
There is a lot of incompetence in the government and in the oil companies. There is a clashing of heads.
Of course doing nothing must be bullish as oil continues to head higher.
We can't get too comfortable about inventory levels because of the geopolitical situation. Demand is growing, which leaves us vulnerable to a disruption. If we lose output from a major source these ample inventories will soon be history.
This is going to be the most confusing rollover in the history of the gas market.
We're seeing crude build up in the U.S. thanks to imports, rather than having to get help from our strategic petroleum reserves, and that's very encouraging.
Gasoline demand, while down from pre-Katrina levels, continues to improve.
There's a lot of interest in trading these commodities, but it used to take too much money. Now, it gives the little guy a way to get in the game.
Maybe Iran, Venezuela and Russia need to get some fresh air as the fumes from their oil profits continue to cloud their better judgment. Oil power intoxication with an endless stream of oil profits seems to cause a feeling of extreme and all-encompassing power.
You're seeing some back and forth movement because after three straight up days, there's a strong tendency to take profits. But any prolonged labor disruption in Nigeria would be devastating.
The market thought that, with extremely warm temperatures in the Northeast and refiners pumping near capacity, heating oil supplies would go through the roof. Now we're left wondering what would happen if it really set in, if it actually got cold.
Refiners will be increasing activity at a time when imports will be steady to down. That should give us a draw in crude stocks.
The market is reacting to new threats out of Nigeria and some strike rumors in Europe. But for this time of the year, this is nothing new. As we approach the summer driving season we tend to play out the worst case scenarios in our heads.
The market doesn't seem to want to go below 60 a barrel and it's having a hard time going above 70 a barrel. The question is, which way do we break out
The big question is how long the demand destruction will last. If it is short we could be back to all- time high prices by the end of the year.
This is a triple whammy. The EIA report points to higher prices because we have a draw on gasoline and not any build on crude oil stocks...at the same time distillate stocks are also running behind, when they should be building too.
It reminds us how reliant we are on imports, and with the geopolitical climate and tropical storms, we could not afford to be down for any extended period of time to meet demand.
The main driver today is Tropical Storm Rita. We really can't afford to lose more production.
There's a strong demand for gasoline and that's part of what's driving the market today.
This market has been like a firecracker out in the sun. It's waiting to explode and this Iranian issue was the issue that made it blow through that area today.
It still seems the threat of losing Iranian oil is a far out issue. Today it appears traders are preparing for what could be a bearish Department of Energy weekly supply report.
Demand is starting to improve and distillate supplies continue to fall. It will have to get cold at some point and we will be in trouble.
Picture Quotes to Inspire and Delight
Picture Quotes to Inspire and Delight