Jason Schenker Quotations | Page 2

If the rise in imports and utilization manifest this week continues next week, it could apply some downward pressure. Of course, any decline in petroleum prices would be predicated on the notion that the Iranian geopolitical situation remains relatively quiet.

The saber-rattling on both sides of the table has led to some pricing in of risk, but it's quite conceivable we could see prices go back to $60, even the high $50s, if this dispute reaches a resolution or even a stalemate.

The government's offer of barrels from the Strategic Petroleum Reserve has mitigated some of the upward price pressure on crude oil. The problems with gasoline and natural gas may not be helped even if the SPR is tapped. If refineries are offline and can't run the extra oil, it will make no difference.

The month-over-month increase at 0.4 percent was the swiftest rate since January 2005. The implication is that core inflation may be rising.

The bigger question is does OPEC have excess capacity that it can tap into in the longer-term, ... It appears they're unlikely to raise their quotas, and that's not going to assuage market concerns about their capacity.

Strong continued gross domestic product growth and solid employment gains should fuel further home sales and may mitigate some of the slowing engendered by higher interest rates.

People are waiting for the shoe to drop. Which shoe it is doesn't matter. They just want it to be done.

OPEC's statements and quota decision announced at the beginning of next week could exert a somewhat bearish impact on prices.

OPEC is likely to be a critical event next week. A cut in production, however, seems quite unlikely despite slower fourth-quarter U.S. GDP growth out today and a well-supplied market. The specter of oil supply disruption haunts energy markets.

Next week is a huge week for data, and it is likely to show continued economic growth and inflation well under control.