After the dramatic parabolic rise of the price of crude oil last week to $135/barrel following the U.S. government reports of huge draw-downs in inventory, this week there is an entirely different sentiment, fueled today by the announcement of the Saudis that they will supply more crude oil to world markets. What a difference a day makes!
The Saudis have expressed the belief that the correct price for crude oil is between $60 and $70 per barrel. While I don't hold such a bearish opinion for crude oil prices, I would certainly feel inclined to join in the chorus of crude oil consumers who would thank the Saudis for helping to collapsed an overheated crude oil price.
The only question now is: Why did it take them so long?
Wednesday, May 28, 2008
Crude Crumbles, Thanks to the Saudis
