We are at levels that in the past several years had caused gasoline prices to approach the $1.70-type national average record levels.
We're forecasting oil will grind higher up to $33, ... with an ultimate spike up to $40 a barrel on the outbreak of hostilities.
Worries about gasoline supplies during the summer driving season are fading.
With winter speeding by, there isn't much time left to generate significant demand.
Remember, the power outages are what bedeviled recovery efforts after Katrina,
To the extent that those reports disappoint us, you may see rebounds.
We're stuck in a little bit of a range right now ... we're still in a pronounced downward channel.
We will be looking to see if we can get below $59.30, which is key support. In the near term $56.30 is the target. It's close to the July low and if we can break below that we will next be looking at the $46 area, which is the May low.
A significant amount of refined products will remain off the market for some time to come, and will prevent heating oil and gasoline stockpiles from being replenished, at least for the next few weeks,
There's pre-holiday buying taking place. In Iraq and elsewhere things are percolating. The market will be shut four days, and in this geopolitical situation it makes sense to cover positions and bets.
There was a late wave a selling at the end of the day.
There's no telling how high prices of gasoline prices could go, at least for a time. Four dollars or higher is not out of the realm of possibility.
Prices are going to be driven directly by the projected path of the storm,
Demand was down nationwide, partly because drivers were off the road in parts of Louisiana and Mississippi because of Katrina, and obviously because high prices are helping to discourage demand.
Demand destruction fears are trumping fears about damage to oil facilities. It's not just Katrina that is hurting demand. High prices have strained economies, especially in Asia, and demand is being curtailed as a result.
Apparently, the market does not believe a turn to colder temperatures will boost heating demand enough to make a significant dent in supplies. Obviously some other supply disruption may have to occur to take the pressure off prices.
The moderate weather is really helping push prices lower, ... There are no signs that OPEC will cut back on output, which has jumped to near records. As long as the oil keeps coming and demand languishes, I see no reason for prices to rise.
This isn't enough to break the back of high oil prices.
This condition will last through the New Year and has given the technical picture a decidedly negative bias. Any bargain hunters have certainly been given pause by yesterday's action, although the low volume probably exacerbated the downdraft.
As much as Katrina has taken (the oil) supply off the table, there's also demand it has taken off the table.
It's a silver lining, but it's not positive enough to get traders to stop staring down Rita.
It's the uncertainty on the storm's track. We're still quite a nervous market, and a substantial fear premium has already been priced in at this point, ... We're hanging on every report.
The biggest disappointment is that oil is not getting out of the north which is supposed to be Kurdish-controlled.
The sentiment has changed from worries over supply to worries over demand.
This is a very nervous market that needs every single incremental barrel the market can put out and produce,
If there is a direct cost of the Iraq war to consumers besides the impact on the federal budget, it's certainly being seen at the gas pump,
The hangover from the damage done by Ivan is still on everybody's mind. We're still in that mode where any bullish news is tremendously bullish even if it's slight.
The IEA report reminds us that there could be a supply problem in the fourth quarter. Storm damage and the chemical workers strike in France are going to hurt supply. Given the levels we have fallen from, prices are beginning to look like a bargain.
The LOOP is incredibly important right now. If it is not up soon there will be a spillover for refineries in the Midwest, which could run out of crude quickly. This could lead to gasoline shortages in the weeks ahead.
