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

To: SilentZ who wrote (404578)	8/5/2008 10:12:24 PM
From: tejek	Respond to of 1576588

>It didn't seem to affect prices till Bush said he would lift off shore drilling bans. Coincidence, mostly, I think, because most speculators have to know that, best case scenario, there's no way the removal of that ban increases supply any time within the next couple of years. Even thought driving and gas consumption has been down YoY for the past 7 months, gas inventories kept declining. That stopped three weeks ago when for the first time in a while, gas inventories increased, reflecting the lower demand. That's when crude prices starting coming down. It had little, if anything, to do with what Bush was saying about OCS drilling. In addition, its never been clear what percentage of the price for crude was based on supply/demand factors, and what percentage was based on speculation and hoarding. To date, crude is down 20% from its high of three weeks ago, and it looks like it could drop another $10-20. That suggests that speculation was a much bigger factor than many believed including me. Right now, oil traders are starting to get margin calls....so I bet the next $10 down will go pretty fast.