Friday, April 08, 2005

Hot Commodity or Hot Potato?

Up to $58, then nearly straight down to $53 as "Oil falls for fifth day."

Quotes from article above:

Fitzpatrick said that while a "major top" on crude prices may be in place, there's still not a "wholesale shift" in the market's thinking.

For that reason, he predicts a continued struggle between those who think "the era of cheap energy is over" and "those who think the economic toll resulting from rising energy prices will ultimately kill demand."

As regards demand for gasoline, Phil Flynn, senior market analyst and vice president of Alaron Trading, said the big difference between this year's summer driving season and past seasons is that more and more is being asked of refiners.

After running at a record pace through the winter, they are expected to continue through spring and into summer.

"Can they pull it off? If yes, then I'd agree we've hit the peak in gas prices. If not, then we could be set up for yet another historic run. We'll all stay tuned," said Flynn.