The laws of economics still apply and higher prices call forth more supply while dampening demand. The long view of the market's history, filled with booms and busts, is on our side.
More Quotes from Tim Evans:The bulls are trying to put up a fight here, trying to make a case that the build in stocks and the drop in price over the past month haven't really hurt all that bad.
The markets are all doing their best spin jobs off the latest round of DOE data, but there were really no significant surprises. The overall economic importance of the data is still bearish.
Profit-taking was the most widely employed term for what (happened Friday), but we see the potential for this simple turn to develop into a much more substantial decline, as the fundamentals behind the push higher were not all that strong to begin with.
To put that offer on the table for the next three months, it's clear to me that they're willing to steer the price lower, ... They really don't want every U.S. consumer to park their SUV and buy gasoline-electric hybrids -- they don't want to trigger that kind of consumer response.
The OPEC demand revision is more of a reminder than anything else. Between the high level of crude stocks and the downward revisions to demand, the price should have trouble climbing like it has done this week.
The weather outlook remains a potential fundamental support for these markets, but it has been so well advertised and has failed to boost prices to such an extent as to suggest that it is still too little winter, too late in the season to matter.
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