Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Different This Time?


$100 Crude????


Editor's Note: Our goal in Minyanville is to remove intimidation from the financial markets and encourage an interactive dialogue among the Minyanship. We share this next discussion with that very intent.

Prof. Succo,

I find it very interesting that commodities of many kinds (soy, corn, oil) are dropping sharply this morning in light (it is claimed) of a demand crimp brought on by London.

First, we know that isn't a consequence of such attacks. In fact, oil continued to rise even through the very real slow down initially after 9/11.

Odder still - oil's pullback comes on the heels of the Saudis (finally, just this morning) fessing up that they do not have the ability to supply the world's demand even 10 years out. That should be the most bullish of news and yet here it is being sidelined.

There seems always some noise around such events. I personally don't think reaching in to buy makes sense here for me. Recall when we were hit our markets had already been tanking for a year and more. In this case, London was at a new multi-year high.

It's going to be different this time.

Minyan Brian

MB -

Goldman Sach's analysis that oil could hit $100 in the next year is very plausible, according to our work. 2007 could be a year where oil exploration and new supply coming on line is superceded by higher demand.

We also think that the reason that new refining capacity coming on line is insufficient supports that view. Companies are not going to invest immense capital for a new refinery if they believe that the supply of oil will decline.

< Previous
  • 1
Next >
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

Featured Videos