Published on: 13:42PM Jul 30, 2008
The crop conditions continued to improve in a time period when we normally see decline. This alone would have caused some weakness, but the really big factor was the continued slide in the oil complex.
Today’s move close to the $120 support level has many talking about oil below $100. Now that gas has gone below $4 at the pump in most areas, consumers are starting to breathe easier.
It should be noted that the oil market has been down since Mr. Bush lifted the executive order against off-shore drilling, but he’s not getting any of the credit. We will still need state-by-state approval for drilling to really increase supplies. But don’t expect it to become an issue before the election time period.
It will be interesting if the concern about energy prices persists as a political issue for the upcoming election. I believe getting an energy policy that works to provide sufficient fuel and electricity to keep our economy running is the No. 1 issue of the election. All other considerations are secondary. If we don’t have a strong economy we will not have jobs. It’s that simple.
All other issues can be resolved eventually if the individual bank account is strong enough to pay the bills. To my way of thinking I believe we must actively develop all renewable resources and increase the research for hydrogen energy and fuel cells on the same footing as the mission to the moon or the Manhattan project.
The problem is this implies short term pain for long term gain. Do you hear of any politicians that can get elected on this type of platform? I believe as an informed citizen it’s time we require more from our politicians than feel good comments about social change and a specific plan on how they are going to move us forward to energy independence.
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The recommendations and opinions contained herein are based upon information from sources believed to be reliable. However, that information may be incomplete and unverified. There are numerous factors that can affect the markets, which cannot be fully accounted for in the preparation of these recommendations. Those following these recommendations do so at their own risk. The firm and/or customers of the firm may take a position that may not be consistent with the recommendations herein. Any recommendation does not constitute an offer to buy or sell or the solicitation of an offer to buy or sell any commodity interest. Commodity trading involves risks, and you should fully understand those risks before trading.
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