Sounds like someone had a bet working and got off a one lot trade before anyone else could respond. Bit tacky to trade through the other offers. Surprised the NYMEX didn't kick the trade out.
No biggy. We're basically there ($100)
For 2008, I'm betting lower though with GWB in the White House screwing up all over the world, any sort of political mess could keep things on a boil. But if his recession comes, we go lower.
If there is a recession, how low is "lower"? We have met the enemy, and he is us — Pogo
I could see the Saudis tolerating $60-75 if they see evidence higher prices are leading to real acceleration of shifting to alternatives. They're smart enough to know that once people shift, they won't come back.
If we have a serious worldwide recession such that demand drops back to say 70 MMBD from current 80-84 range, we could go even lower as at that level Saudi and Kuwait could turn off their entire production and there would still be a surplus. OPEC had that size drop in the pull of their production in the 80's which led to oil going from $40 to $10 (say $100---$25 now).
http://www.wtrg.com/oil_graphs/PAPRPOP.gif
Odds of that happening??? got me.
