From MSNBC business section dated 03/07/08
Is oil overvalued?
Many analysts believe oil is overvalued, arguing that oil supplies are at high levels and the demand is falling. In its latest inventory report, the Energy Department said overall demand for oil dropped 3.4 percent over the last four weeks compared to the same period last year.
"We don't see oil demand accelerating while the price has its foot on the throat of consumers," said Tim Evans, an analyst at Citigroup Inc., in a research note.
Oil companies are reporting record profits each quarter, yet they say they are not gouging the consumer. If they are paying more for crude oil and demand is falling how can they keep making more money?