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Oil Should Be Around $10 a Barrel: Analyst

CNBC -- The price of a barrel of oil would be closer to $10 if the commodity wasn't traded as an investment instrument, given the record-high levels of U.S. oil inventories, Peter Beutel, president of Cameron Hanover, told CNBC Monday.
"I honestly think that if there were no investors using oil as an asset that the price of oil right now would be $10 or $15 or $18, but it wouldn't be anywhere near where it is," Beutel said.

"We have so much oil right now, more than we've had in 27 years. Why is it 27 years? Because that's how far our records go back. It's probably the most in 50 or 100 years," he added.

Part of the reason the price of oil is currently above $74 (BIS: US@CL.1) a barrel is because of a belief in the economic recovery, Beutel said.

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Submitted Aug 30, 2010 By: Romey08

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DrCashFlow Champion Author Massachusetts Posts:4,780 Points:1,169,630 Joined:Jun 2008	Message Posted: Sep 1, 2010 5:27:32 AM Ignore DrCashFlow Report Abuse $10 is a big stretch, but $30-$40 is not out of the realm of possibility when the realization that a double dip recession is unfolding becomes apparent.
remay Champion Author Houston Posts:4,701 Points:1,655,795 Joined:May 2006	Message Posted: Aug 31, 2010 8:33:20 AM Ignore remay Report Abuse Already posted! Oil Should Be Around $10 a Barrel: Analyst Submitted Yesterday By: V8_460
MAC48 All-Star Author Dallas Posts:728 Points:499,925 Joined:Dec 2006	Message Posted: Aug 31, 2010 12:30:30 AM Ignore MAC48 Report Abuse Need to take crude oil, natural gas & all products made from crude oil & natural gas out of the commodities market so that "investment", a.k.a. speculators, hedge funds & 100% government owned oil companies (read OPEC countries here.) cannot use the futures market to artificially set a base price for a barrel of oil or an MCF of natural gas.
NHLiveFree Champion Author New Hampshire Posts:7,205 Points:1,170,885 Joined:Jun 2008	Message Posted: Aug 30, 2010 8:23:17 PM Ignore NHLiveFree Report Abuse REPOST of same article posted by 460 V8 hours earlier Romey08.
NekoSJG Champion Author San Jose Posts:3,230 Points:570,805 Joined:Jun 2010	Message Posted: Aug 30, 2010 8:09:34 PM Ignore NekoSJG Report Abuse And the amount we consume is still going up? It helps to size the inventory in terms of days rather than amount.
MidNJ Champion Author New Jersey Posts:4,628 Points:739,595 Joined:Sep 2009	Message Posted: Aug 30, 2010 7:23:18 PM Ignore MidNJ Report Abuse As I said earlier, sell you investments in oil, buy gold!
kag2010 Champion Author Winnipeg Posts:2,894 Points:561,410 Joined:Apr 2010	Message Posted: Aug 30, 2010 5:21:26 PM Ignore kag2010 Report Abuse $10.00 is good.
CruisinLinda Champion Author Tallahassee Posts:7,947 Points:1,621,420 Joined:Sep 2005	Message Posted: Aug 30, 2010 5:20:10 PM Ignore CruisinLinda Report Abuse The CFTC under new leadership has had more than year to raise margin requirements and amend rules to help consumers. Let's move it!
Bussman Champion Author Dallas Posts:3,864 Points:992,595 Joined:Nov 2008	Message Posted: Aug 30, 2010 5:16:55 PM Ignore Bussman Report Abuse Ok, so bring it on.