James Williams Nigeria Quotations

With Nigerian problems, uncertainty about the Iran nuclear program before the IAEA (International Atomic Energy Agency) meeting next week, and the overhang of the Saudi attack and an OPEC meeting on the 8th, we are in for a lot of volatility in prices.

Some of the oil price change is the market taking a calmer look at the situation in Nigeria and the potential for a supply interruption from Iran.

Lower withdrawals than most estimates -- at 20 billion cubic feet -- are bearish for gas, but the concern about the Nigerian supply of crude and the reaction to the Iranian situation could result in crude giving gas some support.

Outside of concern about interruptions from Nigeria or Iran, there is no fundamental reason for prices not to weaken.