"sfb" wrote in message news:k0GRe.28079$Bc2.4142@trnddc06...
The post you cut says there is an excess of crude, but the price increases
over the last few months refute that unless the laws of supply and demand
have gone sour. Today's prices may be the lull before the storm until the
full extent of Kartina is known.

"N93332" wrote in message
...
"sfb" wrote in message
news:TEFRe.28069$Bc2.4672@trnddc06...
Really not sure who doesn't get it. When demand exceeds supply, prices
go up and the price of crude has been on a skyrocket.

But crude HASN'T skyrocketed. Watching CNBC shows that crude is currently
at 68.85 which isn't THAT much higher than it was last week. Crude hasn't
gone up (much), but the refining it has.




Yes, the price increase over the past few months is a function of global
supply/demand and the markets observation that higher prices aren't changing
consumers' behavior yet. The price action late last week and early this
week is a function of panic/speculation based on not knowing what the affect
of Katrina would be on production and refining. Now that it looks like the
affect on production will be modest and the effect of refining will be
significant, everything will start to readjust.

Mike
MU-2