Oil prices... With regards to factors that are continually publicized regarding oil price movers... OPEC announces production cuts Nigeria announces aggression towards facilities Oil company announces facility disruptions Bush announces confrontational policies Chavez announces prospective cuts to US Russia announces quotas...price changes.. Iran announces possible aggressions Saudi Ministers announce supply messages Demand actually changes up or down Hurricanes...weather announcements... ............................................................................................ All of these issues weigh in on the price of oil from time to time....however it is the true fuel supply bottlenecks and real demand that matter... However at any given time...an oil announcement can happen that moves nervous money... What is interesting is that the oil producers do want one thing...the most money that they can make... Very interesting the tools that are used to keep oil prices high... What is telling are the numbers that are actually used by these countries in government planning...Venezuela for example uses $29 in their budgeting policy planning... One thing for sure...one can expect higher than usual oil prices as long as Bush is in office...
Dont forget. Oil prices have been very cheap for sometime and have not really gone up. In 1996, I was paying less then 1.25 per gallon. In 1999, I remember paying 99 cents a gallon. In 2002-2003, I was paying 1.25 per gallon. In comparison, everything else has gone up. Oil is just catching up to where it should be. Gas and oil is still very cheap when compared to how other products have gone up in price.
The magic number is 60. As long as oil prices can remain over 60, then the oil/energy stocks will do well. The Arabs need at least 60 to finance their growth operations. Somewhere between 60-65 is the sweet spot for everyone involved. Over 70, kills the economy. OPEC wont let the price fall under 60. American oil companies wont let it fall under 60. They all got used to the sweet profits the last year. As we all know, its hard to work for less. These guys wont do it.
Excellent Commentary... Most of the world lives at $200-$800 monthly...and is far more sensitive than the US to price movement... The current numbers are extremely high relatively.... And whatever the oil price is...the production states are not going to like a cheap dollar...which will add to the Euro convert question... One thing for sure... We are going to find out.....