Wednesday, November 03, 2004

Oil @ $51?
I would have thought a stable and decisive presidential victory would have depressed the price of oil. What do the markets know that we don't, exactly?

A second Bush administration will likely continue filling U.S. emergency oil stockpiles despite high prices and could stoke nerves about U.S. policy in the Middle East, particularly OPEC's second-biggest producer Iran.


But oil prices have fallen from $55....maybe they sensed victory already and had priced a stable election into the market price. The only adjustment left would have been the outcome, up or down. They obviously were slightly discounting a Kerry win.

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