[R-G] When speculation and credit exceed oil supply

[CeJ]

I predict it will hit 101 dollars and then you will see the
profit-taking pull back.
Then the stock markets will stage a remarkable 72 hour recovery.

http://news.yahoo.com/s/ap/20071109/ap_on_bi_ge/oil_prices_186;_ylt=AvIuZztoQqzD57rIKVNDtrIE1vAI"
excerpt:

>>It's going to be a prizefight next week between the bulls and the
bears," said Phil Flynn, an analyst at Alaron Trading Corp. in
Chicago. "This is going to be like Rocky III. It's going to be
bloody."

Estimates of where crude prices are headed vary. Many analysts expect
prices to rise to at least $100 a barrel, but a growing chorus is
warning that futures are soon due for a sharp downturn.

Few analysts believe the underlying fundamentals of supply and demand
support such high prices. Many blame speculative investing fueled by
the weak dollar for oil's recent run-up. Oil futures offer a hedge
against a weak dollar, and oil futures bought and sold in dollars are
more attractive to foreign investors when the U.S. currency is
falling.

Consumers and businesses are nearly as preoccupied as traders with the
$100 level, Flynn said. The shock value of oil's recent run-up already
has caused many to limit their consumption, Flynn said.

"In all my years watching the price of oil, anytime we've come up this
far this fast, it's always caused demand to slow down," he said.>>end
of excerpt
>>>>>>>>

CJ


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