Monday, October 27, 2008

Thought for the Day

Brent Crude hit $59.00 a barrel today. Does that mean global oil consumption has fallen to less than half? So much for speculators not being a major driver of meteoric oil prices.
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5 comments:

Henry Louis Gomez said...

I've come to the conclusion that the high prices were driven largely by a weak dollar. Now that other world currencies are tanking the dollar is relatively stronger.

October 27, 2008 at 10:05 PM
Henry Louis Gomez said...

Check out this chart.

LINK

October 27, 2008 at 10:07 PM
Henry Louis Gomez said...

Now look at this chart:

LINK

October 27, 2008 at 10:10 PM
rsnlk said...

My bad. I hadn't thought of the dollar. It still doesn't account for the degree of the drop, however. Speculation was big. Even pension funds were in on it.

October 28, 2008 at 6:19 AM
Henry Louis Gomez said...

Read this article:

LINK

It was published in Barron's in June predicting a decline in the price.

Yes there was a degree of speculation jacking the price up but there were other factors as well. Also consider that many American HAVE cut back on driving and thus somewhat on demand.

October 28, 2008 at 1:48 PM

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