Charles Maxwell on Bloomberg 06-27-05.

Charles Maxwell of Weeden & Company appeared on Bloomberg TV on June 27, 2005.

His comments, as close as my notes get them:

- Believes that we are temporarily above $60, but that we are now in a permanent range of $45 - $60.
- Oil is difficult to find, demand is up every year, and there is no change in consumption patterns.
- Something has to give: Price.
- Speculation is a big factor in the price, but reasonably so - there is a serious question as to whether we will have enough in the 4th quarter.
- Just as bad - the situations in Saudi Arabia, Iraq, Russia and Venezuela.
- There may be as much as $10-15 of risk speculation in the price of oil - and justly so.
- That premium will stay there until we see a more stable/normal environment, which doesn't seem to be the world we're inhabiting.
- He believes there's no chance the US will go into Iran.
- There is a real slowing of Russian production growth.
- Has no good idea on the futures of Iraq and Venezuela.
- The major new source of energy = conservation. Prices will rise, so we will be forced to.
- Energy sources in the future: Oil, coal, nuclear. Additionally, solar, wind, tight gas, oil shale and tar sands.
- Believes oil price will top out at $62-63, find a floor in the high 40's over the next year or two, and by 2010-2011 be $100.