"From Alaron Energy Report: Wednesday, March 31, 2004
Up in flames! Yesterday's explosive OPEC inspired rally was followed up with an explosive night session. An explosion in a BP Amoco refinery in Texas sparked prices skyward. Terror fears are running high again, especially after the FBI issued a warning that refiners could be a target. There is no indication the Texas refinery fire was terrorist activity but it has made the market nervous. Emotions have calmed somewhat and this is just one more reminder of how any small problem could have a major impact on oil.
Quit blaming the speculators! Everyone wants to blame the speculators for this run up in oil prices. Some analysts want to point the finger at them for high prices, but maybe they should look in the mirror when placing blame! OPEC can take part of the blame and analysts can take their share too. They've totally misjudged the fundamentals of the world oil market. Now OPEC and some analysts want to tell us the fundamentals don't warrant these price levels. Should we listen to them? They've been way off the mark in world demand. They've been way off the mark in supply estimates. Guess who's been on the mark? The speculators have been! A free market will always find a fair price and the speculators have been on the right side...."
OSH Price at posting:
0.0¢ Sentiment: None Disclosure: Held
