September 13, 2005
NO FLOOR:
Oil prices steady as energy demand cools (AFX, 9/13/05)
Oil prices steadied amid an easing in demand for global energy, though it did not prevent political leaders in Europe from voicing deep concerns over the current cost of crude. [...]Prices have fallen by about 10 pct since striking record high points of 70.85 usd in New York and 68.89 usd in London on August 30 -- a day after Hurricane Katrina battered US oil facilities in the Gulf of Mexico.
Oil prices were 'extending losses from late last week as concern mounted that the high prices are starting to... sap demand', Sucden analyst Sam Tilley said.
'Many feel that we may see a deeper correction down to the mid-50 dollars on high crude and distillate stocks, reduced demand and the end of the US driving season,' he added.
Downward pressures are an inevitable function of prices are being driven by demand and speculation rather than supply. Posted by Orrin Judd at September 13, 2005 7:34 AM
It is hilarious to watch your reaction every time oil prices pull back from a new high. Its like you have no long term memory. With each pullback you assure us that $5 oil is within our grasp.
Posted by: Robert Duquette at September 13, 2005 1:11 PMNot $5, maybe not $20 again, but sub $40 rather easily. It gets iffier below there, at least until China implodes..
Posted by: oj at September 13, 2005 1:17 PMThat's a strange way to define "no floor". 18 months ago when oil was approaching the $40 level you optimists thought that was a ceiling, now you see it as a floor. You're making progress, Grasshopper.
Posted by: Robert Duquette at September 13, 2005 2:05 PMNo, based on supply, $20 seems to be the floor, $40 the ceiling.
Posted by: oj at September 13, 2005 2:09 PM