Seems like prices shoot up 3%-5% whenever a significant to average threat is made that may increase the price of oil, and then only reduces by 1%-2% when that threat subsides (either not happening or very little effect)
Case and point:
1. Anticipation of a strong hurricane seasson / not one strong hurricane
2. Anticipation of strong driving season / amount of driving actually weakens
3. Anticipation of Oil producing Nations going to war / No nations going to war at all
4. Anticipation of major decrease in oil reserves / increase in reserves or little decrease
Anyway, my point is that some of these "threats" whether natural or man-made, I think are still having some lasting effect on the price per barrel of oil. What % of a barrel is made up of old threats that never fulfilled their expectations?
Case and point:
1. Anticipation of a strong hurricane seasson / not one strong hurricane
2. Anticipation of strong driving season / amount of driving actually weakens
3. Anticipation of Oil producing Nations going to war / No nations going to war at all
4. Anticipation of major decrease in oil reserves / increase in reserves or little decrease
Anyway, my point is that some of these "threats" whether natural or man-made, I think are still having some lasting effect on the price per barrel of oil. What % of a barrel is made up of old threats that never fulfilled their expectations?