Hi again Ray. Crikey, look at this. Even good quality oil is heading for $40 a barrel. Already.
<Light, sweet crude for January delivery fell $3.64 to $45.49 per barrel on the New York Mercantile Exchange -- the lowest settlement price since Sept. 16. Prices climbed above $55 a barrel in October.
"There are some people out there with red faces who locked in some incredibly high prices," said James Cordier, president of Liberty Trading Group in St. Petersburg, Fla.
The last time oil prices fell so fast in one day was after the Sept. 11, 2001 attacks as traders anticipated the coming economic shock. On Sept. 24, 2001, Nymex crude futures declined by $3.96 to close at $22.01 per barrel.>
For ease of reference, I have excerpted some recent comments to you:
< <The only way that the world will again see $40/bbl oil is a decline in demand, i.e., a global recession.>
Ray, I'll bet $10 to a knob of goat poop that we see $40 again.
At $40 there are still all sorts of altervatives which are economic. Oil at $40 will lose market share. Saudi Arabia, Iran, Iraq and Russia won't stand for it. They'll boost production, open the spigots and regain market share. They are making a fortune at anything over $40 and the more they can sell, the better they'll like it. >
I suggested to Jay a while ago that he switch to a short of oil at about $52 a barrel I think it was. Message 20625878 In 2004 dollars, oil is simply not worth $50 a barrel over several years as competition will displace it.
Mqurice |
