When energy costs go up, the bills go up for consumers and it cuts into their discretionary spending. Consumers spend less on things like clothes and shoes. If gas prices escalate, that has the same effect. So retailers suffer as well.
More Quotes from Phil Flynn:
There are a lot of risks and a lot of things that could go wrong with this year's summer driving season that we've never really experienced before.Phil Flynn
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.
Phil Flynn
Last week it was 'buy the rumor, sell the fact' with all the conflict in Iraq. I think we're getting closer to the top, barring any catastrophes, with oil in the 38-42 a barrel range over the summer.
Phil Flynn
The main driver today is Tropical Storm Rita. We really can't afford to lose more production.
Phil Flynn
I may be in the minority, but I think there's a strong possibility that we're very close to the lows for the rest of the year. If we get the cold weather like some are predicting, the commodity funds will favor the long side of the market as we close out the year.
Phil Flynn
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.
Phil Flynn
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But time is yet another of God's creations, and as such, it has a life of its own.
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