'Knee-Jerk' Reactions Keep Oil Prices High

Summary


Knee-jerk is becoming part of the nomenclature in the oil and gas business, right alongside the conjoined supply and demand.

Knee-jerk is the reaction of the New York Mercantile Exchange to anything geopolitical, governmental or related to refineries. Some feel such a reaction is the reason the price of crude oil actually closed over the $100 per barrel mark last week. After March oil topped $101 late in the week, April oil settled in at $98.81.

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Extract


'Knee-Jerk' Reactions Keep Oil Prices High

"It's obviously been teetering around $100 for a little while but it's different when it actually closes there," said Pete Brown, head of locally based Cimarron Production. "The l...

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