Oil hits record high $93.00 per barrel

[admin]

NEW YORK (AP) -- Oil futures rose Monday, but pulled back from a new trading record above $93 set after Mexico's state oil company suspended a fifth of its oil production due to stormy weather.The news that Petroleos Mexicanos, or Pemex, was to temporarily halt as much as 600,000 barrels of daily crude production came amid rising political tensions in the Mideast, a weakening U.S. dollar and a tight supply outlook that had already pushed crude oil to record prices.
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</td></tr></tbody></table><script language="javascript"> if(window.yzq_d==null)window.yzq_d=new Object(); window.yzq_d['7lAPLULaX9w-']='&U=13ako8v5j%2fN%3d7lAPLULaX9w-%2fC%3d570180.9955411.11519314.1383221%2fD%3dLREC% 2fB%3d4307124'; </script><noscript>http://us.bc.yahoo.com/b?P=IOKi8dFJqz8fTOMyRr.I7QRHGACfuEcmIt4AA7Hr&T=1enkkk1is%2fX%3d1193681630%2fE%3d8988914%2fR%3df in%2fK%3d5%2fV%3d2.1%2fW%3dH%2fY%3dYAHOO%2fF%3d343 1499035%2fH%3dY29udGVudD0iY3VycmVuY2llcyIgY29icmFu ZD0iPGEgaHJlZj1odHRwOi8vdXMucmQueWFob28uY29tL2Zpbm FuY2UvbmV3cy9hcGYvU0lHPTEwa2Ztb2ZvbC8qaHR0cDovL3d3 dy5hcC5vcmcvPjxpbWcgYm9yZGVyPTAgc3JjPWh0dHA6Ly91cy 5pMS55aW1nLmNvbS91cy55aW1nLmNvbS9pL3VzL2ZpL2dyL3Bh cnRuZXJfbG9nb3MvYXAyXzE3MHgzMy5naWYgYWx0PUFQPjwvYT 4iIGNhY2hlaGludD0iODk4ODkxNCIgY2FjaGVoaW50PSI4OTg4 OTE0Ig--%2fQ%3d-1%2fS%3d1%2fJ%3dFEA849D1&U=13ako8v5j%2fN%3d7lAPLULaX9w-%2fC%3d570180.9955411.11519314.1383221%2fD%3dLREC% 2fB%3d4307124</noscript></td></tr></tbody></table>"Mexico shut in production for a few days," which will likely disrupt imports and cut domestic oil inventories further, said Chip Hodge, energy portfolio manager at John Hancock Financial Securities in Boston.
Oil prices have jumped 9 percent since the Energy Department on Wednesday reported that oil supplies dropped sharply during the week ended Oct. 19. The Mexican oil fields are expected to return to service later this week.
Prices were also supported by fighting in Turkey between armed forces and Kurdish rebels, and the U.S. government's imposition last week of harsh penalties against Iran, the world's fourth largest oil producer.
However, many analysts argue that oil prices have risen to levels not supported by crude's underlying demand and supply fundamentals, and are due for a correction.
Light, sweet crude for December rose 33 cents to $92.19 a barrel on the New York Mercantile Exchange after rising as high as $93.20 in overnight trading. Crude prices are closing in on the inflation-adjusted highs hit in early 1980. Depending on the how the adjustment is calculated, $38 a barrel then would be worth $96 to $101 or more today.
Other Nymex energy futures were also higher. Gasoline for November delivery rose 2 cents to $2.294 a gallon, while November heating oil rose 1.09 cent to $2.4434 a gallon.
Natural gas futures rose 11.2 cents to $7.33 per 1,000 cubic feet.
In London, December Brent crude advanced 50 cents to $89.19 a barrel on the ICE Futures exchange.
At the pump, the national average price of a gallon of gas rose 0.7 cent overnight to $2.856 a gallon, according to AAA and the Oil Price Information Service. Gas prices have risen nearly a dime in two weeks.
The weak dollar was also supporting energy futures. The dollar's descent against other major currencies has drawn investors to crude futures as a hedge against the weakening currency and made dollar-denominated oil futures less expensive to people dealing in other currencies, said David Moore, commodities strategist with the Commonwealth Bank of Australia in Sydney.
Oil prices could get another boost this week if the Federal Reserve cuts interest rates.
"The central bank will in all likelihood cut rates again, thus pressuring the dollar even further and providing underlying support to commodities in general," wrote Edward Meir, an analyst at MF Global UK Ltd., in a research note.
Despite oil's relentless march higher in recent weeks, many analysts argue that the price increases are being driven by speculation, not market fundamentals. Bullish news headlines out of Turkey, Iran and, on Monday, Mexico, contribute to this buying frenzy, these analysts argue.
"There is not shortage of news that speculators can use now to push oil prices higher," said Fadel Gheit, an analyst at Oppenheimer & Co.
Associated Press writers George Jahn in Vienna, Gillian Wong in Singapore and AP Business Writer Thomas Hogue in Bangkok, Thailand, contributed to this report.

[Studz]

NEW YORK (AP) -- Oil futures rose Monday, but pulled back from a new trading record above $93 set after Mexico's state oil company suspended a fifth of its oil production due to stormy weather.The news that Petroleos Mexicanos, or Pemex, was to temporarily halt as much as 600,000 barrels of daily crude production came amid rising political tensions in the Mideast, a weakening U.S. dollar and a tight supply outlook that had already pushed crude oil to record prices.
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</td></tr></tbody></table><script language="javascript"> if(window.yzq_d==null)window.yzq_d=new Object(); window.yzq_d['7lAPLULaX9w-']='&U=13ako8v5j%2fN%3d7lAPLULaX9w-%2fC%3d570180.9955411.11519314.1383221%2fD%3dLREC% 2fB%3d4307124'; </script><noscript>http://us.bc.yahoo.com/b?P=IOKi8dFJqz8fTOMyRr.I7QRHGACfuEcmIt4AA7Hr&T=1enkkk1is%2fX%3d1193681630%2fE%3d8988914%2fR%3df in%2fK%3d5%2fV%3d2.1%2fW%3dH%2fY%3dYAHOO%2fF%3d343 1499035%2fH%3dY29udGVudD0iY3VycmVuY2llcyIgY29icmFu ZD0iPGEgaHJlZj1odHRwOi8vdXMucmQueWFob28uY29tL2Zpbm FuY2UvbmV3cy9hcGYvU0lHPTEwa2Ztb2ZvbC8qaHR0cDovL3d3 dy5hcC5vcmcvPjxpbWcgYm9yZGVyPTAgc3JjPWh0dHA6Ly91cy 5pMS55aW1nLmNvbS91cy55aW1nLmNvbS9pL3VzL2ZpL2dyL3Bh cnRuZXJfbG9nb3MvYXAyXzE3MHgzMy5naWYgYWx0PUFQPjwvYT 4iIGNhY2hlaGludD0iODk4ODkxNCIgY2FjaGVoaW50PSI4OTg4 OTE0Ig--%2fQ%3d-1%2fS%3d1%2fJ%3dFEA849D1&U=13ako8v5j%2fN%3d7lAPLULaX9w-%2fC%3d570180.9955411.11519314.1383221%2fD%3dLREC% 2fB%3d4307124</noscript></td></tr></tbody></table>"Mexico shut in production for a few days," which will likely disrupt imports and cut domestic oil inventories further, said Chip Hodge, energy portfolio manager at John Hancock Financial Securities in Boston.
Oil prices have jumped 9 percent since the Energy Department on Wednesday reported that oil supplies dropped sharply during the week ended Oct. 19. The Mexican oil fields are expected to return to service later this week.
Prices were also supported by fighting in Turkey between armed forces and Kurdish rebels, and the U.S. government's imposition last week of harsh penalties against Iran, the world's fourth largest oil producer.
However, many analysts argue that oil prices have risen to levels not supported by crude's underlying demand and supply fundamentals, and are due for a correction.
Light, sweet crude for December rose 33 cents to $92.19 a barrel on the New York Mercantile Exchange after rising as high as $93.20 in overnight trading. Crude prices are closing in on the inflation-adjusted highs hit in early 1980. Depending on the how the adjustment is calculated, $38 a barrel then would be worth $96 to $101 or more today.
Other Nymex energy futures were also higher. Gasoline for November delivery rose 2 cents to $2.294 a gallon, while November heating oil rose 1.09 cent to $2.4434 a gallon.
Natural gas futures rose 11.2 cents to $7.33 per 1,000 cubic feet.
In London, December Brent crude advanced 50 cents to $89.19 a barrel on the ICE Futures exchange.
At the pump, the national average price of a gallon of gas rose 0.7 cent overnight to $2.856 a gallon, according to AAA and the Oil Price Information Service. Gas prices have risen nearly a dime in two weeks.
The weak dollar was also supporting energy futures. The dollar's descent against other major currencies has drawn investors to crude futures as a hedge against the weakening currency and made dollar-denominated oil futures less expensive to people dealing in other currencies, said David Moore, commodities strategist with the Commonwealth Bank of Australia in Sydney.
Oil prices could get another boost this week if the Federal Reserve cuts interest rates.
"The central bank will in all likelihood cut rates again, thus pressuring the dollar even further and providing underlying support to commodities in general," wrote Edward Meir, an analyst at MF Global UK Ltd., in a research note.
Despite oil's relentless march higher in recent weeks, many analysts argue that the price increases are being driven by speculation, not market fundamentals. Bullish news headlines out of Turkey, Iran and, on Monday, Mexico, contribute to this buying frenzy, these analysts argue.
"There is not shortage of news that speculators can use now to push oil prices higher," said Fadel Gheit, an analyst at Oppenheimer & Co.
Associated Press writers George Jahn in Vienna, Gillian Wong in Singapore and AP Business Writer Thomas Hogue in Bangkok, Thailand, contributed to this report.


IF you did not Long Oil since the war started you dont know jack. As long as there is instability in the middle east the price of oil will continue to rise. Thats why companies LOVE the chaos in Iraq the lack of a peace process in Israel/Palestine and soon to be in Iran, guaranteeing oil prices remain high, and us addicts will keep paying (we need our fix)

[crazyray™]

The traders are the ones running it up right now, manipulating the news. Fair price of Oil is 60/barrel.

When the hedgies start pulling money out in the next few months you could very well see a retracement to 70 dollars/barell with NO CHANGE in political climate.

[Studz]

The traders are the ones running it up right now, manipulating the news. Fair price of Oil is 60/barrel.

When the hedgies start pulling money out in the next few months you could very well see a retracement to 70 dollars/barell with NO CHANGE in political climate.

DONT MAKE ME LAUGH. you really think the traders are manipulating oil prices. Stop watching the FOX news channel, lol

the reason is what i stated above. WIthout any change in the political climate You will never see it DIB. Ever, Why do you think Russia made peace with Iran. Guarantee the price of oil stay high. And why do u think Ahmadajinad likes to make threatening statements, cause it also runs his oil prices up.

[poppa pri]

The traders are the ones running it up right now, manipulating the news. Fair price of Oil is 60/barrel.

When the hedgies start pulling money out in the next few months you could very well see a retracement to 70 dollars/barell with NO CHANGE in political climate.

either way my VLO is going up lol down a dolla and change today but it'll bounce back 2+ tomorrow $$$

[crazyray™]

DONT MAKE ME LAUGH. you really think the traders are manipulating oil prices. Stop watching the FOX news channel, lol

the reason is what i stated above.

I don't watch Fox, but i'm not an idiot manipulated into thinking that Oil is driven up right now by political climate. It was as low as 50/barrel in the past 2 years when the climate was worse.

Easier to make me $$$ :lostit

[TheHipHopBillGates]

It'll be even higher when the Fed cuts rates on Wednesday.

[Studz]

It'll be even higher when the Fed cuts rates on Wednesday.

i feel bad for those people waiting for the dollar to gain again, another interest rate cut on wed and it will slip even further.

[crazyray™]

It'll be even higher when the Fed cuts rates on Wednesday.

american dollar is gonna be worth rocks at this point :shuffle

[poppa pri]

2.05 euro = 1 dollar...

sad...not to mention going to europe on vacation is out of the question...

[Studz]

2.05 euro = 1 dollar...

sad...not to mention going to europe on vacation is out of the question...

i think you have it the other way around buddy, lol

[crazyray™]

its the reason that alot of these tech stocks are seeing such good profits, when you have money flowing in from OUTSIDE of this country, no wonder AMZN ramped up so quickly on strong earnings.

[admin]

IF you did not Long Oil since the war started you dont know jack. As long as there is instability in the middle east the price of oil will continue to rise. Thats why companies LOVE the chaos in Iraq the lack of a peace process in Israel/Palestine and soon to be in Iran, guaranteeing oil prices remain high, and us addicts will keep paying (we need our fix)

I agree, plus not only companies like the chaos in Middle East, but countries like Russia are also benefitting from this since Russia's economy thrives on high oil prices.<o:p></o:p>
<o:p> </o:p>

[blondie]

Good thing I just rid myself of having a vehicle...

[TheHipHopBillGates]

i think you have it the other way around buddy, lol

yeah and I believe thats the GBP not the Euro, the Euro is floating to around 1.45, and a weakened dollar isn't neccessarily bad, exports are up............:shuffle

[TheHipHopBillGates]

I agree, plus not only companies like the chaos in Middle East, but countries like Russia are also benefitting from this since Russia's economy thrives on high oil prices.<o:p></o:p>
<o:p> </o:p>

Yeah but Russia suffers from "Dutch disease", which is when one industry dominates your trade, it raises the value of the local currency and makes ever other industry harder in the nation harder to succeed.

http://en.wikipedia.org/wiki/Dutch_disease

[poppa pri]

i think you have it the other way around buddy, lol

lol my bad, typo...the $5 ncc buck got my head twisted lol

[Studz]

yeah and I believe thats the GBP not the Euro, the Euro is floating to around 1.45, and a weakened dollar isn't neccessarily bad, exports are up............:shuffle

Correctamundo senor gates.

Either way its bad news for us.

[admin]

This is pretty good explanation by Russian Chess Master Garry Kasparov of political Nature of Oil.
Fast forward to 5 minutes

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[TheHipHopBillGates]

This is pretty good explanation by Russian Chess Master Garry Kasparov of political Nature of Oil.
Fast forward to 5 minutes

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yeah I saw this interview, he's pretty much saying it's a rogue state, that it's so corrupted that the people with $$$ are hiring their own security etc........

[TheHipHopBillGates]

Correctamundo senor gates.

Either way its bad news for us.

As long as the Fed keeps bailing out the government & big banks, it's only going to get worse, we need a recession to correct the housing inflation, otherwise all our assets are going to be worthless with all these rate cuts.

[admin]

yeah I saw this interview, he's pretty much saying it's a rogue state, that it's so corrupted that the people with $$$ are hiring their own security etc........

I know people that left Russia within the past 5 years cause they could or did not want to pay the security guards to protect their families. It's fucked up what goes on there.

[poppa pri]

This is pretty good explanation by Russian Chess Master Garry Kasparov of political Nature of Oil.
Fast forward to 5 minutes

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one of the best interviews i've seen on the bbill maher show...i've never really heard garry speak before but i was blown away at this intelligently worded and thought provoking knowledge he dropped on everyone...even bill and his panel were blown away by him...

[admin]

one of the best interviews i've seen on the bbill maher show...i've never really heard garry speak before but i was blown away at this intelligently worded and thought provoking knowledge he dropped on everyone...even bill and his panel were blown away by him...

I agree! Even Chris Mathews after that interview said "ever get the feeling like they are playing chess and we are playing checkers?". We need someone like Garry in our election.

[poppa pri]

I agree! Even Chris Mathews after that interview said "ever get the feeling like they are playing chess and we are playing checkers?". We need someone like Garry in our election.

yesssssssssss def. 100% right
i would vote for garry if he ran here...i cant recall any politican here even sound remotely as genuine and intelligent as him...
politicians are corrupt EVERYWHERE...but when your running a country trying to bring down corruption and every move you make could be your last because of your gov't...much respect...

if he wins over there...barring any poisoning from the kremlin...russia's in for a big change...

do you rememeber when he said i have to watch everything i eat or drink like its nothing...he's not phased by it...its routine for him not to eat or drink anything that out of his control of monitoring...

[So Deeva]

The price of oil is extremely inflated right now, I would go out on a limb and sell short, there is bound to be a correction soon.

[Studz]

I agree! Even Chris Mathews after that interview said "ever get the feeling like they are playing chess and we are playing checkers?". We need someone like Garry in our election.

Carefull Dimitry ur treding on CE topics, Next thing you know your going to have the 3 Neo-Cons on there get on here and start gonig berzerk with copy paste jobs, lol

[DJ Becka]

i think you have it the other way around buddy, lol

More like, I think he is getting it confused with the british pound because right now it's 1 euro = 1.44 american $$$

Which is still really shitty for you guys who plan on traveling to the EU right now :disappoin


oh, and btw - just checked and it's 2.06 british pounds = 1 US $ :disgusted

[Studz]

More like, I think he is getting it confused with the british pound because right now it's 1 euro = 1.44 american $$$

Which is still really shitty for you guys who plan on traveling to the EU right now :disappoin


oh, and btw - just checked and it's 2.06 british pounds = 1 US $ :disgusted

i work on all the british an UK entities at my company, i know the pinch.

[TheHipHopBillGates]

Correctamundo senor gates.

Either way its bad news for us.

http://www.bloomberg.com/apps/news?pid=20601087&sid=air79ZkYBVqw&refer=home

Pimco's Gross Expects Fed to Cut Rates to 3.5 Percent

Oct. 29 (Bloomberg) -- Bill Gross, manager of the world's biggest bond fund at Pacific Investment Management Co., expects the Federal Reserve to lower benchmark interest rates to 3.5 percent to avoid a recession.

More conservative lending practices stemming from investors' reduced willingness to fund risky loans will induce a ``noticeable slowdown'' in credit growth, though not an outright contraction, Gross wrote in a report published on the firm's Web site today.

The Fed's target for overnight loans between banks will have to fall enough that interest rates will be about 1 percent above inflation, he said.

``An increasingly recessionary looking U.S. economy will likely require 1 percent real short rates and 3 1/2 percent fed funds in order to stabilize a potential growth contraction in lending not witnessed since the early 1970s,'' Gross said.

Earlier this month, he said the central bank will likely cut borrowing costs to 3.75 percent in the next six to nine months.

Gross, who manages the $106.5 billion Pimco Total Return Fund, has predicted for more than a year that the Fed will lower rates in 2007. The central bank reduced rates in September for the first time in three years.

Futures traded on the Chicago Board of Trade suggest a 98 percent chance the Fed will lower rates to 4.50 percent at its Oct. 30-31 meeting. The odds on rates declining to 4.25 percent by the Dec. 11 meeting are 69 percent.

To contact the reporters on this story: Deborah Finestone in New York at dfinestone@bloomberg.net

These CEO's and Fund Managers always get a little crazy though, some were calling for a 2 point cut the last time, but its a very biased opinion, because their salary is so effected by the state of the economy.

[TheHipHopBillGates]

The price of oil is extremely inflated right now, I would go out on a limb and sell short, there is bound to be a correction soon.

There does have to be a correction at some point, just not when the Fed is cutting rates. The value of the dollar will just drop more causing the $ per gallon to go up, unless of course OPEC starts trading in petro-euros.....

[John Kennedy]

Take into account the weakened dollar, the $90 per barrel isn't so crazy... plus the fed is eyeing another rate cut. We are all going to be speaking Chinese soon.

[John Kennedy]

There does have to be a correction at some point, just not when the Fed is cutting rates. The value of the dollar will just drop more causing the $ per gallon to go up, unless of course OPEC starts trading in petro-euros.....

+1

[So Deeva]

There does have to be a correction at some point, just not when the Fed is cutting rates. The value of the dollar will just drop more causing the $ per gallon to go up, unless of course OPEC starts trading in petro-euros.....

Oh I agree. Im purely speculating on a correction based on trendlines. I am bearish on strategies when it comes to bull runs in any type of market.

[crazyray™]

The price of oil is extremely inflated right now, I would go out on a limb and sell short, there is bound to be a correction soon.

:agree

Exactly the point that I was trying to make.

The hedge funds/traders etc are running up the price of oil and using the political headlines (which are far better then people are spinning in terms of oil) to fuel the run up. If the issues with Turkey explode, the pipeline people have been mentioning is COMPLETELY out of the picture.

When people start taking profit off the table before the year ends, price should drop down to 70/barrel.

I am getting ready to sell my XOM/Chevron and looking for some better value plays.

:yipee

[TheHipHopBillGates]

:agree

Exactly the point that I was trying to make.

The hedge funds/traders etc are running up the price of oil and using the political headlines (which are far better then people are spinning in terms of oil) to fuel the run up. If the issues with Turkey explode, the pipeline people have been mentioning is COMPLETELY out of the picture.

When people start taking profit off the table before the year ends, price should drop down to 70/barrel.

I am getting ready to sell my XOM/Chevron and looking for some better value plays.

:yipee

Oil prices historically go down in the winter, but I'd still wait for the spike of a Fed Cut before I'd drop them.

[Studz]

:agree

Exactly the point that I was trying to make.

The hedge funds/traders etc are running up the price of oil and using the political headlines (which are far better then people are spinning in terms of oil) to fuel the run up. If the issues with Turkey explode, the pipeline people have been mentioning is COMPLETELY out of the picture.

When people start taking profit off the table before the year ends, price should drop down to 70/barrel.

I am getting ready to sell my XOM/Chevron and looking for some better value plays.

:yipee

oil prices will never drop back to 70 dollars a barrell. Willing to bet the house on it.

[cluba]

This is a pretty good article I just read. It talks about a lot of things you guys were covering (ex: the fallen dollar, what could happen when/ if the rate cut happens, etc)


Oil passes record high near $94
Crude supplies drop again despite a fall in refining activity; expected rate cut could push prices even higher.
By Steve Hargreaves, CNNMoney.com staff writer
October 31 2007: 12:05 PM EDT

NEW YORK (CNNMoney.com) -- Oil prices jumped more than $3 a barrel Wednesday, hitting another record high, after a report showed a big drop in crude supplies and traders awaited an expected interest rate cut that could push prices even higher.

U.S. light crude for December delivery rose $3.04 to $93.42 a barrel on the New York Mercantile Exchange. Prices rose as high as $93.94 in electronic trade after the inventory report, topping crude's all-time record trading high of $93.80 a barrel set Monday.

In its weekly inventory report, the Energy Information Administration said crude stocks fell by 3.9 million barrels last week. Analysts were looking for a gain of 100,000 barrels, according to a Dow Jones poll.

The drop in crude stocks came at the same time that refiners scaled back operations, running at just over 86 percent capacity.

Distillates, used to make heating oil and diesel fuel, rose by 800,000 barrels, while gasoline supplies increased by 1.3 million barrels. Analysts were looking for a 1 million barrel drop in distillate supplies and a 400,000 barrel gain in gasoline stockpiles.

One trader said he was surprised the distillate number actually rose, but said one cold snap could send distillate, and hence heating fuel prices, soaring.

"Refining capacity numbers are very low," Ray Carbone, a broker and trader at Paramount Options, said from the NYMEX floor. "The potential for an explosion is there."
The new math of oil

Oil prices turned higher earlier Wednesday after a report said the U.S. economy grew by a robust 3.9 percent rate in the third quarter, which was more than expected.

The report could influence a decision on interest rates from the Federal Reserve, expected at 2:15 p.m. ET.

The Fed had been expected to cut rates in an effort to prop up the economy, but analysts now say the chances of a cut are maybe 50-50.

A cut from the Fed would most likely send prices higher, as it would promote stronger economic growth and hence demand for crude. But a rate cut had been at least partially priced into crude, so prices could sell off swiftly if the Fed leaves rates unchanged.

Carbone said traders have mostly priced in a quarter point cut already, and added that a half point cut "would really, really move markets."

Oil prices sold off by more than $3 a barrel Tuesday after a report from influential trading house Goldman Sachs urged investors to sell oil now in order to lock in profits.

But crude is still near all-time highs, even adjusted for inflation. The last time oil was this high was the early 1980s, when it rose to $93 to $101 a barrel, depending on the inflation calculation used and the oil contract cited.

Crude prices have spiked over 15 percent in the last three weeks, an oddity for the time of year knows as a "shoulder season" - a time of slack demand between the summer driving and winter heating months.

Fighting between Turkey and the Kurds in oil-rich northern Iraq, reports showing demand outpacing supply in the fourth quarter, a falling dollar and speculative investing have all been cited as reasons for the runup.

Crude oil prices have more than quadrupled since 2002. Analysts say surging global demand combined with limited new supply is the main underlying factor.

The surge in prices has also attracted lots of speculative investment money, further driving prices higher.

And the tight supply and demand situation magnifies the effect that geopolitical tensions have on prices, as there is less spare supply available globally to cover disruptions from places like Iran, Nigeria or Venezuela.

The falling U.S. dollar has also played a role, as oil worldwide is priced in dollars.

Oil-producing nations have less incentive to ramp up output if the buying power they receive per barrel is declining, and foreign consumers have less incentive to reduce demand if oil is, relatively, getting cheaper for them. Top of page
Oil: No longer a heavyweight

[poppa pri]

all this oil @ 70 talk making me think i should sell valero...

[crazyray™]

all this oil @ 70 talk making me think i should sell valero...

i own CVX/XOM

may be time to take profits off the table :agree

[poppa pri]

hmmm take profits...wait till it drops...buy again...what a concept lol

[MikeyDubl]

PTR Petro China up 14.37 today....this stock has been a monster the past 2 weeks

[crazyray™]

The traders are the ones running it up right now, manipulating the news. Fair price of Oil is 60/barrel.

When the hedgies start pulling money out in the next few months you could very well see a retracement to 70 dollars/barell with NO CHANGE in political climate.

:heythere :heythere :heythere :heythere :heythere

[metfan85]

:heythere :heythere :heythere :heythere :heythere

nice! I honestly think the market price is around 100 dollars/barrel or 3.75 a gallon of gas.

thats where people started slowing down their driving. I think as soon the cheaper oil delivery hits the consumer, demand will increase and oil will be going back and forth between 60 and 100 dollars a barrel

[TheHipHopBillGates]

:heythere :heythere :heythere :heythere :heythere

what are you waving at? It's a year later anyone that would have followed your advice and bought puts on oil would have most likely have gotten killed during the spike and dumped to cut and realize a loss, or had their margin called. You wait long enough almost any prediction can come true, unfortunately timing does matter.

[crazyray™]

what are you waving at? It's a year later anyone that would have followed your advice and bought puts on oil would have most likely have gotten killed during the spike and dumped to cut and realize a loss, or had their margin called. You wait long enough almost any prediction can come true, unfortunately timing does matter.

actually, i suggested buying DUG @ that time which would have been 39... you could have (as i did) bought all the way down to the low of 25... and its at 55 today. it spiked into the 60s and 70s as well where MANY people unloaded.

meanwhile, the dow is down 5000-6000 points during the same time.

i never recommended puts because i dont fuck with options :agree

the main point i bumped the thread was because in the end, it WAS speculation that drove up demand. not the artificial bullshit that people were pumping on the way up.

ive been wrong many times too, i just knew that oil would unwind. hedgefunds were ALL in with oil, and on the way up people were underestimating how much they had to play with the price of oil rising.

[Gspot555]

what are you waving at? It's a year later anyone that would have followed your advice and bought puts on oil would have most likely have gotten killed during the spike and dumped to cut and realize a loss, or had their margin called. You wait long enough almost any prediction can come true, unfortunately timing does matter.

:agree

[James Maxx]

2.05 euro = 1 dollar...

sad...not to mention going to europe on vacation is out of the question...

huh?

[admin]

what are you waving at? It's a year later anyone that would have followed your advice and bought puts on oil would have most likely have gotten killed during the spike and dumped to cut and realize a loss, or had their margin called. You wait long enough almost any prediction can come true, unfortunately timing does matter.

I still give him props, after oil reached above $100 I thought it would never be below $80.00 or even $90.00 a year later.