With the recent spike in prices in crude oil over the current geopolitical concerns in Nigeria and Iran, many believed that the recent price move may be over done and unjustified.
The real culprit is certainly the unforeseen supply disruptions that could develop out of the Middle East, so the crude-oil markets will remain on the defensive and prices will probably stay above $60 for the remainder of the first quarter.
If the core rate shows lower inflation than expected, it will give a hint that the Federal Reserve is close to the end of its rate hikes, and this would give equity markets a boost overall,
Traders are more focused on Hurricane Rita as this weather event could have a longer-term devastation on the infrastructure of our nation's oil industry's ability to provide energy to citizens.
Traders and investors feel the new era of rebuilding the Gulf Coast states will be a double whammy causing higher spending deficits,
The demand factor is strictly ruling this market -- supplies are available but are commanding higher prices due to the uncertainties that plague the market -- Iran, Nigeria and global demand is to say the least more of an issue now than ever before.
We should start to see those who are long take money off the table.
Crude oil tumbled in the final minutes of trading as traders are taking an attitude that prices may not see a substantial gain based on supply disruptions from Hurricane Katrina.
The targets of $600 to $625 are more and more a reality and mostly justified as concerns on inflation, geopolitical pressures in the Middle East and now with rates at comfortable levels, central bankers are stuck in a rock and a hard place.
Demand is up mainly as it has a dual role as a food and bio-fuel product.
As long as prices hold above the $520 to $540 range, I feel more comfortable remaining bullish.
This is big news. This is a good step forward for Hewlett-Packard. With her departure, the company will look forward to having new leadership ... so the market is looking at this as a positive for stocks, especially the tech sector.
This move will have a short-term negative impact on the equity markets. However, it is longer term, a positive.
This market is not close to being finished for higher prices.
Inflation fears, monetary policy around the globe is changing and investors' sentiment toward owning gold has improved -- and that continues to spark demand.
If prices accelerate too far over $600, people will feel the market is a little overburdened from the long side.
If the market is truly in a bearish trend, it will close below its open.
For prices to advance much further from the $11-to-$12 level, we will need to see a boost in consumption, or a setback in getting pipelines operational.
The market needs at least a minimum of three 350,000-barrel-per-day refineries to comfortably meet and keep up with the pace of demand here in the U.S.,
