Rising inventories are keeping a lid on prices. Inventories are back at levels we last saw in 1999, but the price is still a couple times higher. The market has been remarkably resilient because there are fears of supply disruptions.
Although the U.S. weather remains relatively bearish, the market is moving higher. There seems to be little fundamental reason for the move as Russian gas supplies to Europe are resuming. However, fear of a possible future disruption is probably a driver.
This market has moved higher on fear and sentiment and Bush may have succeeded in reducing some of the concern. Gasoline is getting whacked right now, which is pulling crude lower. His statements will have a psychological impact on the market but the physical impact is limited.
The market continues to move higher with concern now mainly focused on Nigeria.
The Iranians are going ahead with their nuclear program and saying the heck with what the rest of the world thinks. They didn't say anything about cutting supplies but the market is still nervous.
The market (has) a slightly lower bias. Production curtailments in the Gulf remain supportive, while demand factors must now be considered.
The market is lower as weather forecasts are considered rather bearish through the middle of the month,
The last time inventories were this high was in early 1999 when prices were below $20 a barrel. OPEC wants prices to fall. Saudi Arabia and other members remember that when prices spiked in the 70s there was a rash of investment and they lost a lot of market share for a long time.
The last time inventories were this high was in early 1999, when prices were below $20 a barrel. OPEC wants prices to fall. Saudi Arabia and other members remember that when prices spiked in the 70s there was a rash of investment and they lost a lot of market share for a long time.