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Gold/Mining/Energy : Big Dog's Boom Boom Room

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To: Tomas who wrote (34605)	8/22/2004 7:58:41 AM
From: Tomas	Read Replies (1) of 206107

High crude here to stay - Experts say oil may never dip below $40 Calgary Sun, August 21 By Jon Harding, Business Editor Oil dipping almost $1 doesn't signal the beginning of a major retreat, say commodities experts who suggest crude might never fall below $40 US a barrel again. "Some see a correction happening to $30 US a barrel but that's just not going to happen. We're in a market fundamentals situation -- basic supply and demand -- indicating a high-price environment for ... basically forever," said Peter Linder of Calgary's DeltaOne Energy Fund. "I don't think we'll see a sustained price under $40 again." The price of crude futures backpedalled 84 cents and settled at $47.86 US yesterday. Oil charged above of the $49 US mark earlier in the day. Speculators -- fixated on conflict in Iraq and the short-term effects geo-political issues could have on world supplies -- drove oil to a record settling price of $48.70 on Thursday. Until yesterday, oil had hit had a new all-time high in all but one of the previous 14 trading days. Linder believes a sudden outbreak of peace in Iraq would push crude prices lower but not significantly. "This war premium on prices is not temporary, it's permanent, so get used to it." Oil and gas analyst Martin King of FirstEnergy Capital Corp. agrees the "big picture" offers no hint oil will ever drop much below $40 US a barrel. "I don't think $40 US is a stretch, it's certainly going to sustain in the 30s -- the big picture issue is suggesting that. Which isn't to say it won't hit $60 US, either," said King. canoe.ca

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