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Crude Oil Holds Firm on Another Drop in Supplies

Tough decision for farmers about locking in fuel.
Bryce Knorr 
Published: Jul 22, 2009

t takes two to make a market, and thoughts about the future direction of prices pose a tough decision for farmers wondering if it's time to lock in fuel needs for fall.

Bulls continue to tout $75 or more as a fair price for oil, noting the crumbling dollar and brighter economic outlook that have made energy an attractive hedge against inflation. Bears know the huge supplies of crude oil and products stockpiled in the U.S., betting the market is ready to retest the mid-$30s after doubling in value this year.

Normally prices for propane and diesel firm into the fall. Demand for harvest lifts diesel, while winter heating deliveries keep propane moving higher. Last year, however, prices fell steadily in a counter-seasonal move, as the economic storm gathered forced and punished the market.

To read Bryce Knorr's complete weekly energy review, click HERE.



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