Tuesday, September 2, 2008
Gustav Stage Left, Palin Stage Right, Energy Prices Plummet
Good Trend Setting Tuesday to one & all! The weakness of Gustav is welcome news for all consumers, but perhaps the entrance of Alaska Governor Sarah Palin for Vice President has spooked the energy market more, causing crude oil and natural gas to fall more than 6% in a single trading session. Whether you subscribed to the notion of supply/demand driving up prices, or favor the idea that speculators are responsible, we know Gustav did not increase supply or demand, yet energy prices are plummeting beyond where they were when Gustav wasn't even a single storm cloud. Perhaps it is simple market/economic psychology of discounting future prices based on Alaska's huge energy supply as Palin made her beautiful stage right entrance? There are still those convinced oil is down and stocks are rallying because Gustav missed: http://news.moneycentral.msn.com/provider/providerarticle.aspx?feed=AP&date=20080902&id=4160165 Yet there are others who respect and may credit Palinomics with today's market reaction: http://robots.cnnfn.com/2008/08/29/news/newsmakers/palin_oil.fortune/index.htm With respect for your personal opinion, a majority of Americans do agree that drilling should be part of a comprehensive energy policy. The fact we now have a Governor from the energy rich state of Alaska on the elephant ticket is a breath of fresh air, much fresher than any hurricane Miss. A beauty to put it in supply/demand terms ~ We hope you enjoyed the Psychology of this Call.
Posted by The Call Team at 12:15 PM