WaveStrength Material Profits for November 21, 2006
Media Appearance Alert!
By S.R. Nunnally
I told folks in Radar this morning that an unprecedented event would be taking place tomorrow.
My colleague, Todd Schoenberger, editor of Diligent Investor, and I will be facing off on Fox News' Cashin' In. Tomorrow we'll be headed to New York to tape.
The show will air on Saturday, November 25 at 11:30 a.m. EST and again on Monday, November 27 at 5:30 a.m. EST.
One of the things we'll be discussing is gasoline. Todd seems to think that gas prices will be $4 a gallon by Super Bowl Sunday. He's keeping much of his “intel” under wraps for now, but he did let it slip that he believes severe disruptions in the Middle East regarding Israel and Iran will come to a head in January.
That would be a great catalyst for pushing oil prices higher, and indeed we could see this scenario come to pass…
But I don't think it will be enough to push gasoline to $4 a gallon in January.
Here's my evidence. I don't mind showing you what I'll be revealing on the show…
After Hurricane Katrina hit our Gulf coast, the national average for gasoline prices only hit $3.03 a gallon for the week of Sept. 5, 2005. Oil prices at that time spiked to $66.34 a barrel.
With oil prices below the $60 mark currently, even a rise to that level won't push gasoline prices to $4 a gallon.
So let's look at oil's “all-time high” from this summer. On July 13, oil hit $78.40 a barrel. Gasoline prices were only between $2.92 and $2.95 a gallon.
It appears $78 oil won't get us to $4 gas either.
My personal prediction for oil is $65 a barrel by the end of the year. Tack on an extra buck or two for January, depending on temperatures. This prediction is of course without any geopolitical catastrophe. By my estimation, that oil price could make gasoline prices rise to a national average of $2.40 a gallon.
I guess we'll just have to wait and see.
Let me know who you think is right in this argument. Watch Cashin' In on Saturday, November 25 at 11:30 a.m. EST (or Monday, November 27 at 5:30 a.m. EST). Then send an e-mail to wavestrength@taipangroup.com with your comments.
Also, I'm setting up a poll on the Dynamic Market Alert Forum. You can vote after you watch Cashin' In by visiting this link:
Be sure to log in to vote… You can register for free, as well, and participate in any of the discussions in the forum.