oil up 3 percent overnight., page-2

Oil should end up sitting between $100-$120 for a fair while, maybe occassionally lower. Demand destruction was clearly occuring above these levels, so prices simply can't be maintained in the short/medium term. The longer they sit at $140 levels, the bigger the crunch would have been, and they will probably only spike there occassionally now.

But at the $100-120 levels, Americans will not necessarily sell those big cars, there were little signs of reduced demand world wide, they're healthy prices to invest in alternatives and explortaion, so good all round. If the US$ rises more, then maybe prices will even settle a little below $100

And these prices remain extremely profitable for current producers, particularly with a lower $Aussie. Once prices stablise at these levels we will see renewed interest in oil companies.