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It was tripped off last week and it was a wild ride this week for oil despite ending slightly higher today on the back of a stronger dollar.
Crude continued its tumble which started Friday falling 6% this week.
But with protests overseas -- and turning violent will this week's bearish sentiment be short live.
Andy -- -- is president of -- oil associates he is a touchstone for what is gonna be happening in the oil markets and we are privileged and pleased to see him here.
With us today good to see -- sell out some people -- saying you know would be careful folks -- may have deja -- remember the oil embargo the 1970s.
Didn't happen this week we did have spreading mideast violence but oil came down 6%.
However none of this.
None of -- none of these problems over the mideast have really affected the kingdom Saudi Arabia the oil -- -- If that begins to happen after all the -- -- started in Saudi Arabia so it could happen if that does are all bets -- off from what happens oil.
Well I think that's a possibility where you'd have to watch is whether the oil supply will actually be disrupted in in all these countries what they have in common is.
They have to sell their oil to satisfy the budgets and what did.
Satisfy their social programs.
OK but the but let's just say that for now even with escalating violence and we have a map made earlier this week with all of the riots and it's still.
Brought the price down we weren't a hundred dollars a barrel on Friday do we see that in the near future or do we continue to move -- Well I think there's going to be more bearish pressure on the price -- -- -- I see at least crude oil inventories continuing to rise.
The saudis came out this week and said.
That they're gonna continue with -- higher rates of production and what it is satisfied the market.
We're seeing that -- their contracts and Asia and elsewhere and they believe that a Brent price over a hundred dollars is still too high.
Let's talk for just a second about what happened on Monday.
-- because on Monday we had that twenty minute period which still hasn't been fully explain.
Were oil dropped 3% about one in -- -- just wondering if some insiders somewhere in the world maybe even one of these oil princes.
Who had inventory notes that nobody else had gotten rich as a result of what happened in those twenty minutes is that a possibility.
Well it's always a possibility but we saw this.
Big move down in a three minute period in which to me says some computer generated high frequency trading -- -- and then it.
Cascaded probably with the other computers kicking in.
As the oil price rapidly declining continue -- -- continued throughout the week the decline it wasn't something that was corrected.
Right well that to me as a signal that the market sentiment has actually changed because we saw the market really really long the previous week.
On the back of enthusiasm.
From the quantitative easing.
Not only here but statements from other banks around the world.
The market sentiment simply is changed we haven't seen a supply disruption.
Out of the Middle East despite the demonstrations.
And in addition I think the economy is gonna grow much slower than people expect.
And that's -- really mitigate oil growth.
-- before we let you go why the disconnect between crude oil prices which have continued pretty much until this last week going higher.
Then started to fall the disconnect with gasoline are -- prices keep going up yet but we've got crude moving lower why.
Well the fact is that oil inventories are rising meanwhile refiners are having problems turning that oil into products.
Because they're having unit problems hurricane -- We still had lingering effects for refineries on the Gulf Coast.
And if you can't turn that crude into gasoline and the price of the gas goes up in fact gasoline inventories in the country or 7% lower than this time last year.
Andy -- brow lift our oil associates president -- great stuff thank you very much appreciate it.
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