It will be higher next year but I would not be shocked if it went lower now. I think we will have to cry at the pump longer before we get a real reversal. China and India are growing fast.
"But the magnitude of the day's price decline suggested to some analysts that the bullish momentum that pushed prices over $135 as recently as one week ago may be running out of steam. "This was the first time we've had a bearish reaction," to news that in the past would surely have driven prices higher, Cordier said." great quote from this article: http://news.yahoo.com/s/ap/20080529/ap_on_bi_ge/oil_prices_114;_ylt=An.ogWbfIFbffzspoV5deXuAsnsA
CL 20 Day MA of $125.90 about to be breeched....look for more downside if dips and even closes under this number...bearish set-up...
Everyone keeps talking the same BS, "China & India, blah blah blah". If China and India eliminate their import subsidy, then they will have to pay $4 a gallon like we are. These countries have per capita incomes of 25% of ours, so how will they afford the gas? Michael Masters has proven this is all speculation. The Libyan oil minister laughed and said these prices are nuts, there is no more demand than last year, and plenty of supply. STOP LISTENING TO GOLDMAN SUCKS, etc. I think all the recent calls of $200, $500, $140 etc. are all bagholder "buy" barking, so they can dump!!! Oil is going to $50 and staying there for years!!
The US has one of the Cheapest gasoline rates in the world. look at this table 1. Eritrea $9.58 2. Norway $8.73 3. United Kingdom $8.38 4. Netherlands $8.37 5. Monaco $8.31 6. Iceland $8.28 7. Belgium $8.22 8. France $8.07 9. Germany $7.86 10. Portugal $7.84 108. United States $3.45 Where gasoline is cheapest Rank Country Price/gal 1. Venezuela 12 cents 2. Iran 40 cents 3. Saudi Arabia 45 cents 4. Libya 50 cents 5. Swaziland 54 cents 6. Qatar 73 cents 7. Bahrain 81 cents 8. Egypt 89 cents 9. Kuwait 90 cents 10. Seychelles 98 cents 44. United States $3.45 BTW: Increasenow, supebr call!!!
Its Friday May 30th 10:49 PM New York Time... The 5 and 20 day CL moving averages are providing support and resistance..watch for breakthroughs of either...but...I remain bearish Oil... 5-Days 129.21 20-Days 125.94
obviously a break of the 20 day MA is more profound as there are more days (20) to get this number than (5)...