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Message: Double Edged Sword

Re: Double Edged Sword

posted on Oct 23, 2008 06:27AM

They will cut for sure. A little bit of "panic" amongst opec as they watch their "sp" tank - a little irony as the high price of oil was one factor in this current markets ills. They need (want) $80-$90 oil and to the extent they can affect that with a cut they will.

One positive perspective for NG in this recent drop in price of oil is the disconnect to NG price. It has not dropped relatively anywhere near the tumble for oil. And while the lower oil prices will slow the drive to conversion to NG, that move over will still proceed and demand for NG will only go up regardless of price of oil.

IMO

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