Mickey Fulp, the Mercenary Geologist and I discussed current petroleum supply trends. While we were speaking, the per barrel price broke $95. It is estimated that world geo-political turmoil is keeping almost 4 percent of production off the market. Who knows what the price would be if that was released into the market. Another interesting development is that the Too Big To Fail Banks are no longer welcome in the commodity markets since passage of Dodd-Frank. Perhaps their absence has led to a lower short position and therefore a lower price for all. One thing is certain, it is quite unusual to see gasoline prices decline in August.
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