The price of crude oil has shown good signs of a rebound. In an interview this morning on CNBC, Pickens predicted that the price of crude oil would rebound to $60/barrel before it drops below $40/barrel again. He also indicated that oil and natural gas companies are "on their backs" because the price of crude is now below the cost to produce it, and the oil companies are being forced to shut down wells to cut their costs.OPEC is determined to cut production until the price of crude oil rebounds to at least $60/barrel. The price of crude oil is showing signs of responding higher.
Yesterday, Treasury Secretary Geithner issued the sharpest attack yet on use of oil and natural gas (which until now has been considered to be a clean fuel), suggesting that they must be taxed at higher rates because they are blamed for what they believe is human-caused global warming. Pres. Obama, in an interview in San Francisco during the presidential campaign, said that his cap and trade progam would also cause electricity rates to "skyrocket", and would significantly affect the cost consumers pay for energy in their homes.
