Reply #7: Do you really think they think that way? [View All]

[eallen]

What about those of us who merely hold stock in oil companies? I've been investing in energy since oil was at $30/bbl, because I thought it was pretty damn obvious that the world supply and demand outlook was changing. The run-up from there to $65/bbl has caused those investments to do pretty well. Do you think I then jumped for joy because Katrina has caused another $3/bbl jump? Or do you think I've been crying for the destruction of a city?

Katrina's impact on the price of oil is temporary. Maybe some traders are excited, who went long when the metereologists were forecasting Katrina to spin into Appalichicola as a bare hurricane, and jumped out yesterday. I doubt the executives who run oil companies care much about a temporary spike during September.

My two cents.