Please explain how 20 platforms disappearing in the Gulf is only a
modest effect on production?

"Mike Rapoport" wrote in message
k.net...

"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