Mike, the securing of oil supplies, and removing the uncertainty out of the oil market drivers the price of oil down quickly. The price of oil is a VERY important component in profits for all industries that produce goods that must be shipped.
More importantly, it has been made clear that the intention for Iraq is to use it's oils resources to generate cash flow and rapidly rebuild the country. This means that Iraq will certainly increase it's total oil output as quickly as possible, which would increase supply against no demand increases - thus the price goes down. I suspect there will be some serious busting of OPEC limits for a while.
Look for oil to settle in the 20-22 a barrel range once this is all over...
Alex
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Let's go to the edge of disaster Push the pedal and go a little faster Let's slam into a wall at ramming speed Let's go to the edge of a mountain Jump off and lets start countin' Hit the ground and tell me if it bleeds
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