We set what we call “anchors,” these designed to provide security in the decision making process for corporate planners, investors and traders. Those who have been with us for a while are very familiar with the concept.
We have only one of these anchors outstanding at the moment. That would be our caution on the Middle East set late February 2011. We stated then that the course of least resistance for crude (WTI) is north, and put a 120/125 top side on that commodity. We don’t know we’ll see that price but we know it is foolish to be bearish on crude prices.
We stated also that higher prices will cause forecasters to cut their GDP estimates (already in progress).
Early this week, children at a major security firm predicted prices would now head much lower. The market crowd always demands an authority figure or god and so prices tanked.
If these analysts are intimately familiar with Saudi, or Iranian military plans, or both, then there is something to their claim. Otherwise, it is just noise.
Robert Craven
We have only one of these anchors outstanding at the moment. That would be our caution on the Middle East set late February 2011. We stated then that the course of least resistance for crude (WTI) is north, and put a 120/125 top side on that commodity. We don’t know we’ll see that price but we know it is foolish to be bearish on crude prices.
We stated also that higher prices will cause forecasters to cut their GDP estimates (already in progress).
Early this week, children at a major security firm predicted prices would now head much lower. The market crowd always demands an authority figure or god and so prices tanked.
If these analysts are intimately familiar with Saudi, or Iranian military plans, or both, then there is something to their claim. Otherwise, it is just noise.
Robert Craven
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