I agree. Speculators have been driving up commodity prices but the the recession hits the excess capacity will cause prices to come back down. But low oil prices will not save housing.
On Jim Puplava it was mentioned that OPEC could easily defend $60 by cutting production, which is running at 98% of capacity anyways. Not sure if that’s true, but I agree that $40-$60 is possible. Anything in this range might be a good buying opportunity again, if one believes in the longer term commodities bull-market like Jim Rogers does. After reading “Hot Commodities” I know that Jim also allows for a recession which will create intermediate-term corrections. His long-term prediction arises though from the shortage in supply, where it will take several years to bring on new capacity. While a recession in the US can take longer and the dollar might cave, other countries might emerge and recover fast, and fill up the demand with their stronger currencies.
BushCo is still selling oil out of the Strategic Reserve due to decreased shipments from Alaska’s North Shore. (Thanks BP for the fine corrosion surveillance work by the way.)
And yes, as Dana Carvey’s Church Lady would say, “isn’t that convenient.” Just in time for November elections.
I’m afraid oil prices CAN be manipulated in the short term, just as gold prices can.
Who’s got those figures and charts showing the amount of gold held by central banks and others as above-ground bullion plotted against both 1]price and 2]mine production?
Seems there’s quite a few different opinions on this… If you’re not getting enough mixed messages, here’s another from a brokerage with BS in their name…
Occidental Petroleum Seen As Attractive
The 17% decline in Occidental Petroleum’s stock price since Aug. 25 makes it a good time to buy the stock, an analyst at UBS Investment Research believes.
“We believe it is a particularly attractive (and contrarian) time to build a position in the stock,” wrote UBS analyst William A. Featherston in a recent report.
Oil may temporarily settle in the $50s but it is highly unlikely that it will go below that. Most peak supply theorists posit significantly higher prices over the next 10 years. I would take this opportunity to fill up with $2 gas.
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