There was an interesting interview with Eric Bolling, and oil specialist on crude oil. He knows his stuff and he and I agree. Either oil has to come down or fuel has to come up and guess what? Oil isn’t going down unless some of this bad news turns positive. I know two things, time is money and money is money. I built a house two miles from where I work. Why? I don’t want to waste my life driving to work or waste my money paying to get there. Not everyone has this choice but I do and it not only keeps money in my pocket but gives me an hour more a day than the average person. You can always make more money but you’ll never get back time. Now take a look at the transcript.

Transcript Courtesy of Fox Business

ERIC BOLLING: EARLY ON, WE LOOKED AT THE NEWS ITEMS FROM THE WEEKEND – OPEC SPEAKING LIKE THEY MAY CUT PRODUCTION, WHICH IS ABSOLUTELY CRAZY TO ME. BY THE WAY, THEY’RE ALREADY EXCEEDING THEIR QUOTAS. I HAVE NO FAITH IN THEM CUTTING ANY PRODUCTION BUT THE MARKETS STARTED TO GET STRONG OVER THE WEEKEND, SUNDAY NIGHT IT WAS TRADING UP $1 OR SO. THEN I’LL TELL YOU, THE NIGERIAN THING, THIS IS HUGE. THE MEND, THE GROUP IN NIGERIA THAT BASICALLY SAYS THE NIGERIAN GOVERNMENT IS EXPLOITING THE OIL INDUSTRY AND THEY WANTED A PIECE OF THAT OIL INDUSTRY. THEIR LEADER, THEY SAY, HAS BEEN ASSASSINATED OR KILLED IN PRISON, WHAT THEY SAY. IT BROUGHT THE OIL MARKET FROM $1.50 HIGHER $1.80 HIGHER TO ALMOST $4 HIGHER AT THE TIME. YOU COMBINE THAT WITH GASOLINE MAKING ALL-TIME HIGHS BASED ON THE REFINERY FIRE AND IT’S A RECIPE FOR HIGH PRICES.

DAVID ASMAN: I DON’T MEAN TO INTERRUPT, BUT I WANT TO ALERT YOU THAT NIGERIAN AUTHORITIES ARE SAYING THAT THE GUY IS STILL ALIVE, BY THE WAY. WHO KNOWS HOW THAT WILL SETTLE. BUT WE HAD BEEN FOCUSING MORE ON THE FACT THAT A LOT OF THE SHORTS WERE EXPIRING, THAT PERHAPS TRADERS SUCH AS YOURSELF WERE RESPONSIBLE FOR DRIVING THE PRICE OF OIL HIGHER. HOW DO YOU RESPOND TO THAT?

BOLLING: ANYTIME YOU GO INTO AN EXPIRATION WITH THE MARKET GOING IN ONE DIRECTION, YOU TEND TO GET MORE VOLATILITY IN THAT DIRECTION. I THINK YOU’RE SEEING THAT RIGHT NOW DAVID. I THINK YOU’LL SEE CONTINUED, REALLY SERIOUS VOLATILITY TOMORROW. A $4 MOVE IN OIL, A 4% MOVE IN OIL, THAT’S HUGE. YOU’LL PROBABLY SEE THAT CONTINUE TOMORROW WITH EVERY NEWS PIECE, WHETHER CHAVEZ STEPS UP AND SAYS WE’RE GOING TO CUT OFF OIL SUPPLIES OR MEND SAYS WE”RE GOING TO CONTINUE SOME OF THE ATTACKS ON OIL FIELDS OR PIPELINES IN NIGERIA. ANYTHING COULD SPIKE UP THE OIL PRICES. IF MR. OKAH IS ALIVE, YOU MAY SEE A SUBSTANTIAL SELL-OFF IN OIL TOMORROW AS WELL.

CLAMAN: AND GASOLINE, TOO, ERIC? GASOLINE IS JUMPING JUST LIKE OIL IS JUMPING.

ERIC: YOU’RE RIGHT. IT’S JUMPING. BUT IT COULD JUMP ALOT MORE. THE GAS CRACKS, WHAT YOU MENTIONED, THE VALUE OF THE GASOLINE OVER THE PRICE OF THE CRUDE OIL IS A REFINERY’S MARGIN. IT’S VERY LOW.

CLAMAN: WHY?

BOLLING: IT’S VERY, VERY LOW, BECAUSE CRUDE OIL HAS TAKEN OFF FOR GEOPOLITICAL REASONS. WHEN IT COMES DOWN TO IT, YOU DON’T NEED CRUDE OIL FOR ANYTHING ELSE OTHER THAN HEATING OIL, GASOLINE AND JET FUEL, RIGHT? IF THE CRUDE OIL MARKET IS TAKING OFF WHILE THE OTHERS ARE LAGGING, THAT’S WHAT HAS HAPPENED IN THE LAST SIX MONTHS OR SO, ONE OF TWO THINGS HAS TO HAPPEN. CRUDE WILL CATCH ITSELF AND REALIZE IT’S $20 OR SHOULD BE $25 LOWER. I HAVE A HUNCH THAT THE WAY THINGS ARE GOING IN THE WORLD, YOU’LL SEE THE PUMP PRICES, GASOLINE, HEATING OIL PRICES, DELIVERED –

CLAMAN: DON’T SAY IT.

BOLLING: I’M SORRY. GOING HIGHER.

CLAMAN: DON’T SAY IT. YOU’VE GOT PEOPLE GETTING CRUSHED WITH HEATING OIL AS WELL. THE MARKET UP TWO PENNIES. DAVID AND I NOTICED AS SOON AS OIL TOUCHED $100 AND WENT THROUGH IT, THE MARKET REVERSED. IT WAS UP MORE THAN 80 POINTS. HOW MUCH OF THAT REVERSAL HAD TO DO WITH THE PRICE OF OIL?

BOLLING: IT’S AMAZING IT TOOK THAT LONG FOR THE STOCK MARKET TO REALIZE WHAT WAS GOING ON. A BIG PIECE OF THE S&P MARKET ARE OIL NAMES. INNOVATED OIL COMPANIES REFINERS, TRANSPORT COMPANIES. TO A CERTAIN EXTENT, WE TALKED ABOUT THIS FOR A LONG TIME, THERE’S A TIE BETWEEN OIL AND THE MARKET. IT SHOULD HELP THE MARKET ALONG. BUT WHEN IT RIPS LIKE 4-4.5% A DAY, IT MAKES PEOPLE NERVOUS ABOUT THE COST OF INFLATION.

CLAMAN: IT’S CERTAINLY GOT OUR NOTICE I CAN TELL YOU THAT.

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