Oil Record High, Broken Economy
April 21st, 2008, 10:19 pm. Posted under Market Commentary by AppleOption.
Below is a movie clip from Bloomberg.com
OPEC Secretary-General Abdalla El-Badri talks with Bloomberg’s Francine Lacqua in Rome about factors influencing oil prices, the outlook for market volatility and the need for oil-market guidelines. Crude oil fell after surging to a record above $117 a barrel in New York on speculation recent supply disruptions won’t be enough to keep U.S. stockpiles from increasing. (Source: Bloomberg)
This New York Times article states, “Members of the Organization of the Petroleum Exporting Countries consider the global market well stocked with oil — that there is no shortage anywhere — and that prices are being conditioned more by market psychology than fundamental factors.
Saudi Arabia’s oil minister, Ali al-Naimi, suggested last week that the current oil prices had little to do with global supplies. “I am not going to pull back, I’m not going to dump crude on the market,” Mr. Naimi told reporters last week, according to Reuters.
OPEC’s latest monthly report states that the expected global demand will fall 1.4 million barrels a day in the second quarter.
The Department of Energy states that crude supplies have now increased in 11 of the past 14 weeks.
There is a disconnect between supply and demand… other factors are influencing the price of Oil!
There will be a collapse of Oil… the only questions is when?