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Politics : President Barack Obama -- Ignore unavailable to you. Want to Upgrade?

To: tejek who wrote (100878)	9/6/2011 11:28:33 AM
From: Wharf Rat	Respond to of 149317

westexas on September 6, 2011 - 8:20am A Trip Through an Alternative ("Alice in Wonderland") Oil Price Reality on CNBC This Morning This morning, Joe Kernen and Peter Beutel were discussing oil prices, and Kernen noted that "oil prices" were well below $100, in contrast to many predictions to the contrary. Mike Jackson asked about the WTI/Brent price spread, and Beutel attributed the Brent price to traders, saying that the WTI price better reflected fundamental supply & demand factors. Of course, then why are the Alaska and Louisiana prices so high? I guess Beutel would say it's because they are dragged higher by the people trading the Brent price. Based on the Bloomberg links that Undertow provided, the average global closing spot crude oil price on Friday was about $114, excluding WTI. Brent was $112.48 on Friday. It's trading at about $111 this morning. It seems to me that where producers have access to global markets, the actual average spot price is in excess of $110, but that doesn't fit the narrative that they are presenting on CNBC. Edit: The 9:00 Eastern Time gang on CNBC is continuing with the "WTI Price is Right" theme. Cramer suggested that there should be an investigation as to why the price of gasoline has not fallen in tandem with the decline in WTI. This really is an "Alice in Wonderland" moment. These guys are asserting that a landlocked oil price, which relates to about 5% of global crude oil production, is a more accurate indicator of global supply & demand factors than the price of numerous grades of crude oil that have access to global markets. == The global average crude oil price of about $114 (as of Friday) is in conflict with their view that the worst case for oil supplies is an "Undulating Plateau" many decades from now. So, they have to develop a theory to explain why a landlocked oil price, that is relevant to about 5% of global crude oil production, is the best indicator of global supply & demand factors. I suppose it's basically a good example of cognitive dissonance, but I call it CPSR (Cornucopian Primal Scream Response): [new] Darwinian on September 6, 2011 - 8:42am Listen to it here: Trading Block The Beutel comments start at about 2:45 into the video. The Beutel comments are really unreal. You must listen to it to believe it. Beutel blames everything on "Ivy League traders". Unbelievable! where should oil be? i think it's probably headed to around, somewhere between 74 and 78 near term. where it should be longer term depends on all kinds of things but, i mean, long term and for the economy to move, to improve, i honestly think it should be under 50 and the startling truth of the matter s-we've never had an economic recovery with oil over $30. so, i'm not saying we're going under 30. but where does it really belong? well, before qe2, we had oil at 74. we had gasoline at 188.91 which is about 95, 90, 95 cents lower than where it is right now. so, i think that gasoline should be about 90 cents lower. theoildrum.com