Video: Supply Will Drive Oil Down
I say the fundamentals don’t support higher oil prices, and he expects them to fall back below recent peaks.
Watch the video on MSN Money
Supply will drive oil down
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Agree – today's fundamentals don't support $70 or the recent run up.
IMO
-price should stagnate short term and stay below $70 esp as the dollar continues to rise (maybe 55-70 trading range?)
-any credit or earnings scare that resembles anything from last year's collapse could bring oil close to this years lows- even a bit lower
HOWEVER
- Long term fundamentals (say: 2-4 years – depletion, depletion, depletion) seem to remain very bullish for liquid fuels and it seems every big hedging industry (airlines, etc) is ready to pounce on any price that may give a competitive advantage
I can't see oil staying too low for too long…