Tuesday, January 16, 2007
Well, Oil Has Established A Direction
A rapid drop in the cost of oil from above $60 per barrel to near $51 per barrel in the last two weeks has begun to push the cost of gasoline lower at the pump, according to AAA’s daily, on-line Fuel Gauge Report (www.aaafuelgaugereport.com).
AAA said today the national average price of self-serve regular gasoline has dropped about 5 cents in the last week to $2.229 per gallon, and prospects look good for even lower prices in the weeks ahead, AAA said today.
The key to lower prices will be an oil price that remains near its present level or moves even lower in the days and weeks ahead, AAA said. Oil and gasoline inventories have been growing for months, and attempts by oil producing countries to scale back production in an effort keep prices up do not appear to be working.
"In a letter to shareholders, Indymac Chief Executive Michael W. Perry said the Pasadena, Calif.-based mortgage lender expects fourth-quarter earnings of 97 cents per share, compared with a previous guidance range of $1.30 to $1.40 per share."
Good and bad on the oil front:
(1) I filled up here yesterday for 1.97/gal
(2) business (drilling equipment) is a ghost town
Oh, we've still got a 3 mo backlog; still re-stocking the stores, working O/T, capital investments going forwards.
But nada new coming across. I see it as the trough behind that $3/gal wave from last year. I also think the Saudis are using this to play whack-a-mole with Iran and Chavez...
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