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<p>[QUOTE="Govt Mule, post: 2099038, member: 73667"]The deflationary "trend" has certainly been welcomed, especially at the gas pump. I don't realistically expect this anomaly to become a trend. Oil has been a totally manipulated market since 1974. OPEC has been quite successful in setting global oil prices, much to the delight of major oil refiners.</p><p><br /></p><p>The Saudis have bucked the system and have not reduced production to maintain the crude pricing model. WTI is currently trading at $49/bbl. World storage is becoming quite valuable due to the attractive pricing. </p><p><br /></p><p>Even with the Saudi gift, "mysterious refinery fires" and labor unrest have inflated the price of gasoline by .20/gal at US pumps in the past 3 weeks. If the Saudis take years to stick it to the Iranians, and to a lesser extent the Russians, the large refiners will easily find methods to increase the price of their product.</p><p><br /></p><p>In a terribly over simplistic formula, watch the geo-politics involved with crude. If the Saudis get back in the game and cut production, crude prices will increase to the level that they desire. With a large crude increase, back to >$100/bbl, inflationary pressures drive up price of PM. The real nightmare would be if OPEC decides to start pricing their commodity in a currency other than the dollar.[/QUOTE]</p><p><br /></p>
[QUOTE="Govt Mule, post: 2099038, member: 73667"]The deflationary "trend" has certainly been welcomed, especially at the gas pump. I don't realistically expect this anomaly to become a trend. Oil has been a totally manipulated market since 1974. OPEC has been quite successful in setting global oil prices, much to the delight of major oil refiners. The Saudis have bucked the system and have not reduced production to maintain the crude pricing model. WTI is currently trading at $49/bbl. World storage is becoming quite valuable due to the attractive pricing. Even with the Saudi gift, "mysterious refinery fires" and labor unrest have inflated the price of gasoline by .20/gal at US pumps in the past 3 weeks. If the Saudis take years to stick it to the Iranians, and to a lesser extent the Russians, the large refiners will easily find methods to increase the price of their product. In a terribly over simplistic formula, watch the geo-politics involved with crude. If the Saudis get back in the game and cut production, crude prices will increase to the level that they desire. With a large crude increase, back to >$100/bbl, inflationary pressures drive up price of PM. The real nightmare would be if OPEC decides to start pricing their commodity in a currency other than the dollar.[/QUOTE]
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