Bob's Links and Rants

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Thursday, July 07, 2005

Strange reaction

Oil prices dropped quickly after the apparent terror attacks in Longdon. Nymex crude had hit $62.10 last night, then fell as low as $57.20 after the explosions. It has since rebounded to $59.25. I guess maybe traders who were long on crude decided to take their profits before things got crazy, but it's hard to see how terror attacks in London could reduce demand, increase supply, or change the fact that a hurricane is headed for the Gulf coast. My guess is that that record high of $62.10 will be broken before the weekend.