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Strategies & Market Trends : Ask Vendit Off-Topic Questions -- Ignore unavailable to you. Want to Upgrade?

To: DOUG H who wrote (4814)	2/10/2005 8:33:18 PM
From: Walkingshadow	Respond to of 8752

I think OPEC has made it very clear they will do whatever it takes to maintain an orderly market. They have said they won't cut production unless oil dropped to $37. I think they would be happiest with either a trading range or a moderate uptrend that is not driven by speculators. I think that is exactly what we have---a moderate uptrend. Its also possible that oil will settle into a trading range soon, but gasoline prices evidently will be rising sharply soon (20% or so increase to $2.50/gal range predicted). I still maintain that eventually the steady rise in fuel costs will have significant repercussions. You can only pretend it has no effect for so long. Now that the election is over, we may very well see people willing to face facts: fuel prices have exerted inflationary pressure, and this will very likely persist and get worse, especially if oil remains in an uptrend rather than a trading range. I think some of the things the FOMC has said are kind of laying the groundwork there, but they don't want to spook the markets. T