Blame The Oil Traders

Don’t blame Exxon Mobil for making profits of nearly $10 billion in the past quarter. Blame the oil traders. Despite what most analysts say are adequate supplies, the traders on Wall Street were acting as though supplies were going to get a lot tighter and they had been bidding prices to higher and higher levels until recently.

One analyst, a bear who regularly predicts higher energy prices, said in Canada that supplies will tighten.
If you really want to work up a lather, consider that Matthew Simmons, a Houston-based oil analyst, says that very cold weather could result in oil prices doubling or tripling from their current $60-plus a barrel to $125 to $180 a barrel. Mr. Simmons notes that Americans, despite paying much higher gas prices, don’t seem to have much inclination to cut back their consumption of gasoline.

If he’s right about oil prices, the driving habits of Americans will change dramatically.

The Day (New London, CT)