barring a real demand spike this winter, my hunch is that crude's done. the gangsters have gotten out the business in russia (I should say, the current gangsters), and cashed out so huge that they'll never be short of whores and coke again. they cornered supply for the past 5 or so years and if they had any sense now they'd sell everything they could here. however, "sense" isn't what they have: muscle is. but that only gets you so far so long. the new management is bound to screw things up and may in that event start allowing increased assistance from those who really know the industry to develop production. in spite of itself, it may become more fairly priced. and I'll add this: the entire civilized world -- all of it -- depends on crude oil. if there was ever a strategic asset worth fighting a war over, crude is it. keep your eyes on the den of thieves known as russia.
============== Could be; oil company sector however is still strong ,long. and for quite some time long & strong.
The President has urged Americans to reduce their driving. "We can all pitch in by being better conservers of energy. I mean, people just need to recognize that the storms have caused disruption and that if they're able to maybe not drive when they -- on a trip that's not essential, that would helpful . . . We can curtail nonessential travel." He continued, "We can encourage employees to carpool or use mass transit." typical Bush bumbling delivery... Could that be the start of a worldwide drop in oil demand?
Pull up a chart of the Dow and overlay XLE on it. Recently they had huge divergence, and now appear to be converging. Some have suggested that Dow Transports have recently rallied in anticipation of this type of thing (crude dropping)
I can't see how crude can be done now that heating oil is taking the lead as winter arrives. Gasoline also won't be much of a lugger. Oil prices may ease a bit but strong seasonal demand and the problems with refining capacity, supply constrain and political uncertainty, in Iran, Irak and Venezuela,....not to mention China's growing need for oil... .....let's face it, there's no much bearish news around. That's no reason in my view for energy not to continue to be one of the leading sector again for the course of next year.
Most everyone I know is starting to limit their driving, due to high prices. Some have traded in gas guzzling SUV's for smaller, more fuel efficient models And who really wants to send all their hard earned money to Saudi Arabia? I think energy conservation will quickly become a growing concern in the next year.
Geo-politics plays a big role in creating risk premiums, eg, higher prices. Don't overlook Iran saying they'd consider using oil as a weapon and withholding supply. And anyways, crude isnt the issue - product is. Many guys just trade crude as its more familiar than gas or heating oil
if demand remains the same + Iran Cuts Production -------> Oil is Up?... I don't think so... Oil will crash at the near Year... I would strart a dealer ship for big cars take a look and GL <img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=857212> [/B][/QUOTE]
good site for info.... http://www.eia.doe.gov/oil_gas/petroleum/data_publications/wrgp/mogas_home_page.html (links) for info on right http://tonto.eia.doe.gov/oog/info/twip/twip.asp