Posted on 05/10/2006 8:51:30 AM PDT by LexHoskin
MAY. 10 10:59 A.M. ET Crude futures fell Wednesday after U.S. government data showed an increase in oil and gasoline supplies and higher refinery output.
Prices continued to be supported, however, by concerns about the outlook for Iran's oil exports amid the country's diplomatic confrontation with the West over its nuclear program. With global demand strong and the supply cushion thin, traders also remain worried about output losses in Nigeria, Iraq and the Gulf of Mexico.
Light, sweet crude for June delivery fell 64 cents to $70.05 a barrel on the New York Mercantile Exchange, where gasoline futures fell 1.66 cents to $2.03 a gallon.
(Excerpt) Read more at businessweek.com ...
It's remarkable how long they have maintained the house of cards. Peak Oilers are borderline criminals. Instead of going after the oil companies I say go after the Peak Oilers, they are the real perps of the excess prices.
Speculators and Green extremists are in bed. The Speculators love all the talk of Peak Oil ( http://www.dieoff.org ) and a new "age of limits to growth" because it spreads fear. And the Green extremists love the artificially (emotionally driven) high prices because they can point to them as "evidence of Peak Oil" and because it drives behavior in their cherished European direction. A real "win - win" between two entirely different breeds of snake oil salesmen. Both groups thirve in an economic environment where emotions, fear and knee jerk reactions trump logic and long term views.
Yeah...and when prices back fall two bucks to an obscene $70 a barrel, the macro crowd loves to exclaim "see the free market works!".
We've all been desensitized to $70 a barrel oil. Next stop $100 with a fear premium of $45.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.