December 5, 2005

UNSUSTAINABLE FICTION:

Some oil executives worry prices may fall (Jad Mouawad, DECEMBER 4, 2005, The New York Times)

Hold on to your gas guzzlers: Cheap oil may once again be just around the corner. Even as consumers worry about high gasoline prices and rising heating bills, oil executives in London, Texas and Saudi Arabia seem to be concerned about a prospect of falling oil prices.

In a recent speech in Singapore, John Browne, the chief executive of BP, spoke of a possible sharp drop in prices and called current levels "unsustainably high."

John Hofmeister, head of Shell Oil in the United States, said during an interview, "This high price cycle is artificially inflated."

Posted by Orrin Judd at December 5, 2005 7:36 PM
Comments

This is news? It seems to me more like the predictable unwinding of a bubble, which was in fact actually predicted at about the time of the peak!!

Due to imports, quicker than expected re-opening of infra-structure damaged in hurricnes, opening the strategic reserve, OPEC pumping all they cant, etc., inventories have been high for several weeks running, and nobody I know who is in the futures market has been long for a while.

Posted by: Dan at December 5, 2005 8:41 PM

Bill O'Reilly was on Cavuto today, and he told Neil that HE was responsible for lower gas prices, by huffing and puffing at the oil execs and making them face jail time for their gouging. I think Neil was laughing the whole time, and he finished the 'interview' by telling Bill that he is crazy.

Posted by: jim hamlen at December 5, 2005 11:39 PM
« IF WWII WERE REFOUGHT TODAY THEY'D MAKE JEWS THE BAD GUYS: | Main | PIT PODS (via Robert Schwartz): »