If there is a direct cost of the Iraq war to consumers besides the impact on the federal budget, it's certainly being seen at the gas pump,
This condition will last through the New Year and has given the technical picture a decidedly negative bias. Any bargain hunters have certainly been given pause by yesterday's action, although the low volume probably exacerbated the downdraft.
Remember, the power outages are what bedeviled recovery efforts after Katrina,
To the extent that those reports disappoint us, you may see rebounds.
The sentiment has changed from worries over supply to worries over demand.
This is a very nervous market that needs every single incremental barrel the market can put out and produce,
We are at levels that in the past several years had caused gasoline prices to approach the $1.70-type national average record levels.
Apparently, the market does not believe a turn to colder temperatures will boost heating demand enough to make a significant dent in supplies. Obviously some other supply disruption may have to occur to take the pressure off prices.
There's no telling how high prices of gasoline prices could go, at least for a time. Four dollars or higher is not out of the realm of possibility.
It's the uncertainty on the storm's track. We're still quite a nervous market, and a substantial fear premium has already been priced in at this point, ... We're hanging on every report.
