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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Road Walker who wrote (401061)	7/23/2008 4:39:25 PM
From: tejek	Read Replies (1) \| Respond to of 1577883

Crude has dropped to $124 and change. What do you think is the bottom on this counter move? Its believed that the speculative portion of the price for crude is around 20-25%.......that would take the price down to below $120.....probably between $100 and $120.......you know how they overshoot. Oil stocks started to correct before crude and seem to be stabilizing roughly between 25-30% below their respective highs. Part of their large price decline is due to the fact that no one's reported earnings. Most oil drillers won't report until the first week in August. What I am hoping for is that crude will plateau at this new price for a while. Many think the drop is related to Bush's desire to start offshore drilling. I think it has more to do with the fact that gasoline inventories have risen every week for the past three weeks. Gas is the major derivative from oil in this country. The fact that people are cutting back on its usage voluntarily I believe has spooked the hedge funds holding oil futures. If we can get oil to plateau for a year at these lower prices, I think the world can play catch up and a serious global recession can be prevented. China has signaled very openly that it is slowing its growth. I think that's key to slowing crude's price growth. What do you think?