Each problem is just a reminder as to how close to the edge we are running. The refiners have been running a marathon for two years, they are exhausted.
Other than the weather, and hurricanes, and refineries going down, and Saudi Arabia and Iran, and strong economic statistics, there really is no reason why crude oil prices should be so high. It must be speculation, don't you think
The question is organizational control.
The weather has become increasingly mild and the forecasts are for now much above normal, for example 17 (degrees Celsius) in Los Angeles -- this is extremely warm for the end of December.
The knee jerk reaction to this sort of headline is to think of the Middle East as a powder keg.
The United States doesn't have to worry about gasoline lines. But consumers need to worry about the price they pay this week. They should be prepared for a short-term shock. Only time can fix that.
The market is reacting today as if oil at less than 74 a barrel is a bargain.
When the oil market notices that China is back, and remembers the fire that China's exploding oil demand lit under prices last year, the 'China factor' alone should be sufficient to floor near-term prices.
We have been getting a massive injection (of investment fund money) in the energy markets. It is very clear from the price action that they haven't stopped.
Maintenance seems to be extremely high and there are spec changes in the United States. It's not that there are absolute shortages of products, but there is a concern about how much there is going to be.
It was scary but we had each other so we kept our sense of humor,
Even if there's no damage, it's going to take at least two weeks for refineries to come back. It's at least as serious as Hurricane Ivan, which we had last year. And it took six months to get production back to normal in that case.
Most of us had known days ago that the U.S. would loan oil but some people interpreted the headline as a release of oil, possibly of products. Then the market realized and started buying it back.
Internationally, I've seen the interest in New Zealand art is huge, ... but we have never had an event to showcase it.
We've been rallying on the weather and on short-covering ahead of Thanksgiving in the States.
It is not at all surprising that with the clumsy handling of the Yukos situation we started to see production falls last October. But now as things are getting back to normal we may see a production recovery back on track.
The IEA is doing what it can to talk the market down. The spin is don't worry too much, we've made this release, there might be another and demand is slowing down.
It is not unusual to lose Nigerian supplies but headlines of armed men attacking facilities explains this little rally.
The IEA release has thrown some water on prices. But what remains to be seen is how strong the fundamentals are and whether there will be any more hurricanes.
People can spend 3000 on an artist whose work isn't worth the material it's painted on, and there's no CV, no certificate of authenticity, no guarantees the work is original,
We continue to see fund action. They are coming in across the basket of commodities.
Refiners are exhausted, like runners in midmarathon. They've been pushing very hard since last year. As a practical matter, these things have limits. If you push too hard, capacity drops.
If we are seeing China back to growth, that is another stress factor back in the oil market.
OPEC has been extremely accommodative in its policy in the last one and a half years.
We notice oil has been rallying at the same time as copper and gold. That we think has to do with the funds.
The uncertainty in the Russian tax regime is definitely a problem. In my view however it is not greatly surprising. As barrel prices are far higher than anyone expected to expect these kind of deals - between companies and government - to remain stable isn't really possible.
Today, everyone has moved off those two stories a bit. We're expecting a build in crude, so it's hard to simultaneously say crude is desperately short and U.S. stocks continue to build.
The market was pricing mild, mild, mild and now winter is here and the market has rallied on that,
OPEC is keeping it from going any higher. But we've risen on Nigeria. Nigerian crude is light, sweet crude. It tends to be in short supply.
The chance of all that being met the entire winter is zero.
More Deborah White Quotations (Based on Topics)
Weather - Time - Running - People - Art - Winter - Product - Jokes & Humor - Energy - Worry - Business & Commerce - Accident - Light - Fire - Change - Actions - War & Peace - Statistics - Gold - View All Deborah White Quotations
- - - - - - - - - - - - - - - - - - - -