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Oil Slick Stuff
- Thread starter nnuut
- Start date
nnuut
Moderator | TSP Legend
Xrap!
Oil crosses $109 a barrel
Crude prices keep surging after rising to record in five of six previous sessions.
March 11, 2008: 6:45 AM EDT
SINGAPORE (AP) -- Oil prices soared past $109 a barrel after rising to a record in the previous session as the U.S. dollar weakened further.
Speculation that rising prices for oil and other commodities will offset the falling dollar has driven oil's rally from $87 a barrel in January.
The dollar has fallen to three-year lows against the yen and the head of the European Central Bank expressed concern Monday about the "disorderly movements" of exchange rates.
"This surge to new records is driven by the speculative and large funds moving money into commodities. It's primarily a U.S. dollar and inflation play by financial investors," said Victor Shum, an energy analyst with Purvin & Gertz in Singapore.
Light, sweet crude for April delivery rose $1.10 to $109 a barrel in Asian electronic trading on the New York Mercantile Exchange, by midday in Singapore, after setting a record high of $109.20.
Crude futures on Monday rose $2.75 to settle at a record $107.90 a barrel.
Many analysts believe speculative investing attracted by the weak dollar is the primary reason oil has risen so far so fast in recent months. Crude futures offer a hedge against a falling dollar, and oil futures bought and sold in dollars are more attractive to foreign investors when the dollar is falling.
There was little in oil's price uncertainty to convince analysts that the huge runup in oil prices has run its course. Analysts have said expectations are growing that the U.S. Federal Reserve would cut interest rates at its policy planners' next meeting March 18.
"Lower interest rates would mean increasing liquidity, which means a further weakening of the U.S. dollar and rising U.S. inflation," Shum said. "What that means for investors is that they therefore move their money into commodities as a hedge against inflation."
Gasoline price spike has only just begun [more] http://money.cnn.com/2008/03/11/markets/oil_prices.ap/index.htm?postversion=2008031106
Oil crosses $109 a barrel
Crude prices keep surging after rising to record in five of six previous sessions.
March 11, 2008: 6:45 AM EDT
SINGAPORE (AP) -- Oil prices soared past $109 a barrel after rising to a record in the previous session as the U.S. dollar weakened further.
Speculation that rising prices for oil and other commodities will offset the falling dollar has driven oil's rally from $87 a barrel in January.
The dollar has fallen to three-year lows against the yen and the head of the European Central Bank expressed concern Monday about the "disorderly movements" of exchange rates.
"This surge to new records is driven by the speculative and large funds moving money into commodities. It's primarily a U.S. dollar and inflation play by financial investors," said Victor Shum, an energy analyst with Purvin & Gertz in Singapore.
Light, sweet crude for April delivery rose $1.10 to $109 a barrel in Asian electronic trading on the New York Mercantile Exchange, by midday in Singapore, after setting a record high of $109.20.
Crude futures on Monday rose $2.75 to settle at a record $107.90 a barrel.
Many analysts believe speculative investing attracted by the weak dollar is the primary reason oil has risen so far so fast in recent months. Crude futures offer a hedge against a falling dollar, and oil futures bought and sold in dollars are more attractive to foreign investors when the dollar is falling.
There was little in oil's price uncertainty to convince analysts that the huge runup in oil prices has run its course. Analysts have said expectations are growing that the U.S. Federal Reserve would cut interest rates at its policy planners' next meeting March 18.
"Lower interest rates would mean increasing liquidity, which means a further weakening of the U.S. dollar and rising U.S. inflation," Shum said. "What that means for investors is that they therefore move their money into commodities as a hedge against inflation."
Gasoline price spike has only just begun [more] http://money.cnn.com/2008/03/11/markets/oil_prices.ap/index.htm?postversion=2008031106
nnuut
Moderator | TSP Legend
Back up over $108!
Oil falls after nearing $110
Crude prices dip on lower crude consumption forecasts after rising to another trading record in six of seven sessions.
Last Updated: March 11, 2008: 11:05 AM EDT
SINGAPORE (AP) -- Oil prices fell after setting another record Tuesday as report showed crude consumption for the year would come in less than previously forecast.
Light sweet crude for April delivery surged to a new record of $109.72 on the New York Mercantile Exchange before falling after the International Energy Agency cut its forecasts for crude consumption this year. In morning trading, crude futures fell 66 cents to $107.25 a barrel.
Where oil goes from here is anybody's guess. Many analysts expect prices to moderate, while others predict oil could keep rising to $120 a barrel, or higher. Whatever happens with crude, more people will drive, and they'll use more gasoline, as summer approaches.[more]
http://money.cnn.com/2008/03/11/markets/oil_prices.ap/index.htm?postversion=2008031111
Oil falls after nearing $110
Crude prices dip on lower crude consumption forecasts after rising to another trading record in six of seven sessions.
Last Updated: March 11, 2008: 11:05 AM EDT
SINGAPORE (AP) -- Oil prices fell after setting another record Tuesday as report showed crude consumption for the year would come in less than previously forecast.
Light sweet crude for April delivery surged to a new record of $109.72 on the New York Mercantile Exchange before falling after the International Energy Agency cut its forecasts for crude consumption this year. In morning trading, crude futures fell 66 cents to $107.25 a barrel.
Where oil goes from here is anybody's guess. Many analysts expect prices to moderate, while others predict oil could keep rising to $120 a barrel, or higher. Whatever happens with crude, more people will drive, and they'll use more gasoline, as summer approaches.[more]
http://money.cnn.com/2008/03/11/markets/oil_prices.ap/index.htm?postversion=2008031111
From Stratfor:
Fuel Technology: Geopolitically Significant Microbes?
March 10, 2008 | 1109 GMT
Summary
A new alternative fuel technology backed by oil supermajor
BP would use microscopic organisms to produce methane
from carbon dioxide. If the technology proves successful, it
could have consequences for countries like Russia, which
have large natural gas deposits and thus are massively
influential in the current global energy market.
Analysis
A new alternative fuel technology, backed by oil supermajor
BP, could begin to make a dent in the world’s dependence on
traditionally sourced natural gas. Most importantly, it could
affect the geopolitical dominance of countries like Russia,
which have large deposits of natural gas and therefore a major foothold in the current global energy market. The technology is not a
sure bet; more work needs to be done to make it commercially viable. Still, it is instructive to look at the geopolitical effects such a
technology could have.
The new alternative fuel technology would produce methane (also known as natural gas) from carbon dioxide (CO2) using microscopic
organisms, or microbes, that eat CO2 and produce methane as waste. The technology is based on advancements in both genomics
and microbiology and is being propelled by U.S. geneticist Craig Venter, most noted for his work on sequencing the human genome.
Venter claims that in 18 months his research company, Synthetic Genomics, will be able to produce this nontraditional source of natural
gas, but only time will tell how cost-effective this new technology will be in comparison to traditionally sourced natural gas.
The implications of this technological advancement are vast. For one thing, it would provide a new alternative to drilling for natural gas
deposits in the ground. Natural gas pockets are finite in number and costly to find — not to mention the cost of extracting and
transporting the natural gas to consumers. With the new technology, microbes would be able to produce methane from CO2 in specific
quantities wherever it was needed.
From an environmental and policy standpoint, this means that a cleaner-burning fuel could be made by harnessing a greenhouse gas.
Furthermore, the explosive hazards associated with pipelines or the shipping of natural gas in liquefied form — which are large
inhibitors of natural gas expansion in places like the United States — could largely be abated.
From a geopolitical standpoint, the technology could begin to change the global geopolitical energy balance. Russia is the world’s
largest natural gas exporter. As recent events in Ukraine and Europe have shown, Russia takes this power seriously and often uses it
as a political lever to ensure Moscow gets what it wants. Europe is already beginning to diversify its natural gas imports — including
building new pipelines to places such as Libya and building new import terminals so Europe can accept more liquefied natural gas.
Imagine if European countries began to produce their own natural gas and slowly end their tumultuous reliance on Russian energy
sources. The new technology could also begin to affect other natural gas exporting states such as Qatar, Algeria, and Indonesia, thus
beginning to change the balance of power in those regions.
This energy advancement is not the rogue project of a
single mad scientist. BP backs Venter’s firm, and Venter is not the only geneticist using genetic manipulation with the aim of creating
organisms that will produce fuel. Nonetheless, there are many steps between here and there, leaving plenty of room for other
researchers and corporate backers to compete. These steps include:
Capturing CO2 in a large enough quantity to produce usable amounts of methane;
Producing the microbes;
Scaling the technology; and
Identifying the infrastructure needed to distribute the
methane.
The latter step is the most interesting to analyze. Any new
technology faces a barrier to entry and a series of trade-offs
regarding the benefits of adopting the technology versus
the adaptations required for its use. Therefore, applications
of new technologies that do not require much change to
existing infrastructure are often the fastest to get to market.
In the Western world, the quickest application of the
microbial fuel technology could be at the power plant.
Microbial fuel could be used as a supplement to traditionally
sourced natural gas used at natural gas power plants, or it
could run alongside a coal-fired power plant if carbon
capture technology gets off the ground, producing methane
as a byproduct. Under this scenario, microbial fuel could
feed back into a natural gas power plant or transit down the
same natural gas distribution lines already in place to reach
businesses and homes.
In developing countries, where existing energy
infrastructure is minimal, microbial fuel technology could
begin to feed a new decentralized electric power system —
one that relies on distributed power generators (small
generators providing electricity for only a small number of
consumers).
Outside of power generation, microbial fuel could be used in vehicles, but this scenario first has a large infrastructure hurdle to
surmount. Typically, natural gas vehicles are primarily used as fleet vehicles — buses, heavy-duty trucks and government vehicles —
because fleet owners can install their own natural gas fueling stations. However, some automobile manufacturers are beginning to offer
natural gas-fueled personal cars that often have the ability to switch from gasoline to natural gas depending on fuel availability. This
likely would be the first use of microbial natural gas directly in vehicles, as it would require less change to vehicle fueling infrastructure
in the short to medium term. Another avenue for vehicle fuels is gas-to-liquid technology: Through a chemical reaction, microbial gas
could be turned into a liquid, which could then be refined into a product similar to gasoline. This avenue would not require much change
in fueling infrastructure or in automobile design. If microbial fuel goes down the personal car fuel track, it could not only change the
natural gas landscape but also begin to make a dent in global oil demand, because transportation is a large percentage of that demand.
This new technology still has a long way to go until it can actually begin to affect demand at natural gas behemoths such as Russia’s
Gazprom; in fact, it might not even be possible. However, the idea that a country can begin making its own natural gas without being
naturally endowed with geologic natural gas deposits begins to shift geopolitics in a way that does not happen very often. For instance,
Japan is a top natural gas importer, and as such is always concerned about future energy security and global price fluctuations. And
Turkmenistan’s economy, for example, is heavily dependent on its natural gas export revenue. In this respect, technological
advancements — especially those linked to energy — become an important factor in monitoring the world’s geopolitical balance.
Fuel Technology: Geopolitically Significant Microbes?
March 10, 2008 | 1109 GMT
Summary
A new alternative fuel technology backed by oil supermajor
BP would use microscopic organisms to produce methane
from carbon dioxide. If the technology proves successful, it
could have consequences for countries like Russia, which
have large natural gas deposits and thus are massively
influential in the current global energy market.
Analysis
A new alternative fuel technology, backed by oil supermajor
BP, could begin to make a dent in the world’s dependence on
traditionally sourced natural gas. Most importantly, it could
affect the geopolitical dominance of countries like Russia,
which have large deposits of natural gas and therefore a major foothold in the current global energy market. The technology is not a
sure bet; more work needs to be done to make it commercially viable. Still, it is instructive to look at the geopolitical effects such a
technology could have.
The new alternative fuel technology would produce methane (also known as natural gas) from carbon dioxide (CO2) using microscopic
organisms, or microbes, that eat CO2 and produce methane as waste. The technology is based on advancements in both genomics
and microbiology and is being propelled by U.S. geneticist Craig Venter, most noted for his work on sequencing the human genome.
Venter claims that in 18 months his research company, Synthetic Genomics, will be able to produce this nontraditional source of natural
gas, but only time will tell how cost-effective this new technology will be in comparison to traditionally sourced natural gas.
The implications of this technological advancement are vast. For one thing, it would provide a new alternative to drilling for natural gas
deposits in the ground. Natural gas pockets are finite in number and costly to find — not to mention the cost of extracting and
transporting the natural gas to consumers. With the new technology, microbes would be able to produce methane from CO2 in specific
quantities wherever it was needed.
From an environmental and policy standpoint, this means that a cleaner-burning fuel could be made by harnessing a greenhouse gas.
Furthermore, the explosive hazards associated with pipelines or the shipping of natural gas in liquefied form — which are large
inhibitors of natural gas expansion in places like the United States — could largely be abated.
From a geopolitical standpoint, the technology could begin to change the global geopolitical energy balance. Russia is the world’s
largest natural gas exporter. As recent events in Ukraine and Europe have shown, Russia takes this power seriously and often uses it
as a political lever to ensure Moscow gets what it wants. Europe is already beginning to diversify its natural gas imports — including
building new pipelines to places such as Libya and building new import terminals so Europe can accept more liquefied natural gas.
Imagine if European countries began to produce their own natural gas and slowly end their tumultuous reliance on Russian energy
sources. The new technology could also begin to affect other natural gas exporting states such as Qatar, Algeria, and Indonesia, thus
beginning to change the balance of power in those regions.
This energy advancement is not the rogue project of a
single mad scientist. BP backs Venter’s firm, and Venter is not the only geneticist using genetic manipulation with the aim of creating
organisms that will produce fuel. Nonetheless, there are many steps between here and there, leaving plenty of room for other
researchers and corporate backers to compete. These steps include:
Capturing CO2 in a large enough quantity to produce usable amounts of methane;
Producing the microbes;
Scaling the technology; and
Identifying the infrastructure needed to distribute the
methane.
The latter step is the most interesting to analyze. Any new
technology faces a barrier to entry and a series of trade-offs
regarding the benefits of adopting the technology versus
the adaptations required for its use. Therefore, applications
of new technologies that do not require much change to
existing infrastructure are often the fastest to get to market.
In the Western world, the quickest application of the
microbial fuel technology could be at the power plant.
Microbial fuel could be used as a supplement to traditionally
sourced natural gas used at natural gas power plants, or it
could run alongside a coal-fired power plant if carbon
capture technology gets off the ground, producing methane
as a byproduct. Under this scenario, microbial fuel could
feed back into a natural gas power plant or transit down the
same natural gas distribution lines already in place to reach
businesses and homes.
In developing countries, where existing energy
infrastructure is minimal, microbial fuel technology could
begin to feed a new decentralized electric power system —
one that relies on distributed power generators (small
generators providing electricity for only a small number of
consumers).
Outside of power generation, microbial fuel could be used in vehicles, but this scenario first has a large infrastructure hurdle to
surmount. Typically, natural gas vehicles are primarily used as fleet vehicles — buses, heavy-duty trucks and government vehicles —
because fleet owners can install their own natural gas fueling stations. However, some automobile manufacturers are beginning to offer
natural gas-fueled personal cars that often have the ability to switch from gasoline to natural gas depending on fuel availability. This
likely would be the first use of microbial natural gas directly in vehicles, as it would require less change to vehicle fueling infrastructure
in the short to medium term. Another avenue for vehicle fuels is gas-to-liquid technology: Through a chemical reaction, microbial gas
could be turned into a liquid, which could then be refined into a product similar to gasoline. This avenue would not require much change
in fueling infrastructure or in automobile design. If microbial fuel goes down the personal car fuel track, it could not only change the
natural gas landscape but also begin to make a dent in global oil demand, because transportation is a large percentage of that demand.
This new technology still has a long way to go until it can actually begin to affect demand at natural gas behemoths such as Russia’s
Gazprom; in fact, it might not even be possible. However, the idea that a country can begin making its own natural gas without being
naturally endowed with geologic natural gas deposits begins to shift geopolitics in a way that does not happen very often. For instance,
Japan is a top natural gas importer, and as such is always concerned about future energy security and global price fluctuations. And
Turkmenistan’s economy, for example, is heavily dependent on its natural gas export revenue. In this respect, technological
advancements — especially those linked to energy — become an important factor in monitoring the world’s geopolitical balance.
nnuut
Moderator | TSP Legend
Gas prices hit all-time high
Motorist group survey says nationwide pump prices reach a fresh record as crude keeps cruising; California and Hawaii pay the most.
See all CNNMoney.com RSS FEEDS (close)
Last Updated: March 12, 2008: 8:30 AM EDT
NEW YORK (CNNMoney.com) -- The price of gasoline rose to an all-time high Wednesday, according to the widely followed survey conducted for the motorist group AAA.
The average price of regular rose overnight to $3.246 a gallon, according to AAA's Web site. That's nearly 2 cents higher than the previous record of $3.227, which was first set last May and matched Tuesday.
Regular was $2.953 on average at this time last month and $2.543 a year ago.
Hawaii and California fetched the highest prices at the pump, as consumers had to shell out an average of $3.61 and $3.59 respectively for a gallon of gas. But New Jersey and Missouri drivers found gas prices to be nearly 60 cents a gallon cheaper, paying $3.02 and $3.04 respectively.
When adjusted for inflation, gas prices are still below their peak. The record on that basis was $3.405 and set in March 1981, according to the Energy Information Administration.
The fuel price survey was conducted for AAA by Oil Price Information Service.
http://money.cnn.com/2008/03/12/news/economy/gas_prices/index.htm?cnn=yes
Motorist group survey says nationwide pump prices reach a fresh record as crude keeps cruising; California and Hawaii pay the most.
See all CNNMoney.com RSS FEEDS (close)
Last Updated: March 12, 2008: 8:30 AM EDT
NEW YORK (CNNMoney.com) -- The price of gasoline rose to an all-time high Wednesday, according to the widely followed survey conducted for the motorist group AAA.
The average price of regular rose overnight to $3.246 a gallon, according to AAA's Web site. That's nearly 2 cents higher than the previous record of $3.227, which was first set last May and matched Tuesday.
Regular was $2.953 on average at this time last month and $2.543 a year ago.
Hawaii and California fetched the highest prices at the pump, as consumers had to shell out an average of $3.61 and $3.59 respectively for a gallon of gas. But New Jersey and Missouri drivers found gas prices to be nearly 60 cents a gallon cheaper, paying $3.02 and $3.04 respectively.
When adjusted for inflation, gas prices are still below their peak. The record on that basis was $3.405 and set in March 1981, according to the Energy Information Administration.
The fuel price survey was conducted for AAA by Oil Price Information Service.
http://money.cnn.com/2008/03/12/news/economy/gas_prices/index.htm?cnn=yes
nnuut
Moderator | TSP Legend
Oil down on big increase in supply
Crude prices take a dip on higher-than-expected crude inventory.
Last Updated: March 12, 2008: 10:51 AM EDT
(CNNMoney.com) -- Oil prices dropped Wednesday after a government report said supplies of crude rose much more than expected.
U.S. light crude for April delivery fell $1.45 to $107.30 a barrel. Oil had traded up 21 cents at $108.96 just prior to the report's release.
In its weekly inventory report, the U.S. Energy Information Administration, a government agency that measures oil and gas supplies, said crude stocks rose by 6.2 million barrels last week. Analysts were looking for a rise of 1.6 million barrels, according to a Dow Jones poll.
Distillates, used to make heating oil and diesel fuel, fell by 1.2 million barrels while gasoline supplies rose by 1.7 million barrels. Analysts were looking for a 2 million barrel decline in distillate supplies and a 300,000 barrel rise in gasoline stockpiles.
Refinery usage was a bit lower than the previous week, operating at 85% capacity last week, falling slightly short of estimates.
Crude prices fell as investors believed oil inventories to be too high amid slumping demand. Gasoline demand held steady last week, still averaging just 9.1 million barrels per day over the past month. Demand is only 0.4% higher than the same period last year.[more]
Crude prices take a dip on higher-than-expected crude inventory.
Last Updated: March 12, 2008: 10:51 AM EDT
(CNNMoney.com) -- Oil prices dropped Wednesday after a government report said supplies of crude rose much more than expected.
U.S. light crude for April delivery fell $1.45 to $107.30 a barrel. Oil had traded up 21 cents at $108.96 just prior to the report's release.
In its weekly inventory report, the U.S. Energy Information Administration, a government agency that measures oil and gas supplies, said crude stocks rose by 6.2 million barrels last week. Analysts were looking for a rise of 1.6 million barrels, according to a Dow Jones poll.
Distillates, used to make heating oil and diesel fuel, fell by 1.2 million barrels while gasoline supplies rose by 1.7 million barrels. Analysts were looking for a 2 million barrel decline in distillate supplies and a 300,000 barrel rise in gasoline stockpiles.
Refinery usage was a bit lower than the previous week, operating at 85% capacity last week, falling slightly short of estimates.
Crude prices fell as investors believed oil inventories to be too high amid slumping demand. Gasoline demand held steady last week, still averaging just 9.1 million barrels per day over the past month. Demand is only 0.4% higher than the same period last year.[more]
James48843
Well-known member
Oh goody. It fell to $107 a barrel!
Never mind that it is going to take a month for the current price to work it's way through the refineries and end up as a price at the pump.
At $107 a barrel, gasoline should be up to around $4 a gallon. It is already a done deal. It just will take some time to get there as refiners make gas, and then ship it to stations.
Never mind that it is going to take a month for the current price to work it's way through the refineries and end up as a price at the pump.
At $107 a barrel, gasoline should be up to around $4 a gallon. It is already a done deal. It just will take some time to get there as refiners make gas, and then ship it to stations.
nnuut
Moderator | TSP Legend
One of the BIGGEST DRIVERS of INFLATION!! Milk $5 a gallon, Gas to $4 a gallon, tomatoes $1 each, need I go on?View attachment 3523
nnuut
Moderator | TSP Legend
Oil hits all-time record of $109.83
Crude prices nearing $110 on weak dollar even as crude and gasoline inventories are much higher than forecasts.
By David Goldman, CNNMoney.com staff writer
Last Updated: March 12, 2008: 12:36 PM EDT
NEW YORK (CNNMoney.com) -- Oil prices rebounded to another record high Wednesday after initially plummeting when a government report said supplies of crude and gasoline had risen much more than expected.
U.S. light crude for April delivery rose 70 cents to $109.45 a barrel after hitting an intraday trading high of $109.83. Oil had traded as low as at $107.09 after the report's release.[more]
I think Oil will close over $110 a barrel today!
http://money.cnn.com/2008/03/12/markets/oil_eia/index.htm?postversion=2008031212
Crude prices nearing $110 on weak dollar even as crude and gasoline inventories are much higher than forecasts.
By David Goldman, CNNMoney.com staff writer
Last Updated: March 12, 2008: 12:36 PM EDT
NEW YORK (CNNMoney.com) -- Oil prices rebounded to another record high Wednesday after initially plummeting when a government report said supplies of crude and gasoline had risen much more than expected.
U.S. light crude for April delivery rose 70 cents to $109.45 a barrel after hitting an intraday trading high of $109.83. Oil had traded as low as at $107.09 after the report's release.[more]
I think Oil will close over $110 a barrel today!
http://money.cnn.com/2008/03/12/markets/oil_eia/index.htm?postversion=2008031212
Last edited:
James48843
Well-known member
Note:
Oil prices are not now being controlled as a function of supply and demand.
It is very clear that world supplies appear to be adequate for demand.
Therefore- there is only one reason oil prices are climbing- that is speculator activity.
You remember the stock market bubble? It popped in 2001, and we saw what happened then. Money flowed instead into Real Estate.
Real estate bubble?
It's popped now, with tumbling prices. And people are fleeing. Money going to Gold.
Now there is a Gold bubble. But Gold alone is not a big enough market for all the money to flow into.
So the result? People putting their money where they think the price is going up, up,. up.
OIL.
Soon, the price will have to pop. Supply and demand are ok right now- there is no captialist market-based reason for $110 oil today, even with the tumbling of the U.S. dollar factored in.
So if you want a "sure bet" here soon, start thinking about a way to short the price of a barrel of oil, because it's going to have to pop at some time.
$110 a barrel is speculation territory.
Oil prices are not now being controlled as a function of supply and demand.
It is very clear that world supplies appear to be adequate for demand.
Therefore- there is only one reason oil prices are climbing- that is speculator activity.
You remember the stock market bubble? It popped in 2001, and we saw what happened then. Money flowed instead into Real Estate.
Real estate bubble?
It's popped now, with tumbling prices. And people are fleeing. Money going to Gold.
Now there is a Gold bubble. But Gold alone is not a big enough market for all the money to flow into.
So the result? People putting their money where they think the price is going up, up,. up.
OIL.
Soon, the price will have to pop. Supply and demand are ok right now- there is no captialist market-based reason for $110 oil today, even with the tumbling of the U.S. dollar factored in.
So if you want a "sure bet" here soon, start thinking about a way to short the price of a barrel of oil, because it's going to have to pop at some time.
$110 a barrel is speculation territory.
nnuut
Moderator | TSP Legend
James I"m with you on the Bursting Bubble thing, it's coming, just have to wait for the economic conditions to adjust!! Good post!!
Not quite $110 at close, but close!
03/12/08
Settle .............$109.92..............+1.17 For the day.
BUT over $110 in after hours trading at this moment (15:13)!!
Not quite $110 at close, but close!
03/12/08
Settle .............$109.92..............+1.17 For the day.
BUT over $110 in after hours trading at this moment (15:13)!!
James, I think you are exactly right, but I don't think the bubble will burst until the end of summer when demand drops. Even then there is lots of support for $70 oil, so we will probably never see oil drop below that unless we have "spectacular" tech. break through soon, that can be marketed quickly. (Pretty unlikely, but who knows)
nnuut
Moderator | TSP Legend
Lately when Oil goes up the dollar goes down and to make it worse when the dollar goes down OIL GOES UP. A double sword, cuts both ways. It used to mainly be demand that drove the price of Oil, things change.
Oil crosses record $110,despite supply rise
Crude prices hit $110.20 on weak dollar before settling at $109.92, even as crude and gasoline inventories are much higher than forecast.
By David Goldman, CNNMoney.com staff writer
Last Updated: March 12, 2008: 3:27 PM EDT
NEW YORK (CNNMoney.com) -- Oil prices rebounded to another record high Wednesday afternoon after initially plummeting when a government report said supplies of crude and gasoline had risen much more than expected.
In afternoon trading, U.S. light crude for April delivery surged to a high of $110.20 before closing at $109.92. Oil had traded as low as at $107.09 following the report's release on Wednesday morning.
In its weekly inventory report, the U.S. Energy Information Administration, a government agency that measures oil and gas supplies, said crude stocks rose by 6.2 million barrels last week. Analysts were looking for a rise of 1.6 million barrels, according to a Dow Jones poll.
Gasoline supplies rose by 1.7 million barrels, significantly more than the 300,000 barrel rise that analysts had forecast. The government said gasoline stockpiles are well above average for this time of year.
"The big number is the build in gasoline," said Stephen Schork, publisher of the industry newsletter the Schork Report. "We usually see a 2 million barrel draw at this time, not a surplus."
Since September, gasoline stockpiles have increased from a 16 million barrel deficit to a 22 million barrel surplus, which Schork believes is due primarily to the continuing low demand for gasoline.
Rising prices in spite of supply and demand. Typically, an increase in supply and low demand would result in much lower crude prices. But crude and gas prices continue to rise.
"This is all driven by speculation," said Schork, who believes that investors have poured money into the commodity to make some interest in a slumping economy. "That's why we've seen a jump from 20,000 to 90,000 contracts this month."
About an hour after the government report's release, oil rebounded to around the level of Tuesday's settle as investors continued to pour money into commodities.
"This market is not about supply and demand, it's about the dollar," said Alaron senior analyst Phil Flynn. "The dollar is weaker and investors are buying anything they can get their hands on."
Gas demand much lower. Still, oil's rebound is somewhat surprising given continued low demand for gasoline. Gas demand held steady last week, still averaging 9.1 million barrels per day over the past month. Demand is 0.4% higher than the same period last year.
The EIA revised its U.S. oil and gasoline demand forecasts downward Tuesday, citing a slow economy and high oil prices. The government agency now expects oil demand in the United States to grow just 40,000 barrels a day, or 0.2%, in 2008, down from 0.5% or 100,000 barrels a day in its previous forecast.
Since 2001, oil demand has grown an average of 0.9% annually or 175,000 barrels a day. In 2007, oil demand was statistically flat, growing only 10,000 barrels a day.
Gasoline demand has grown an average of 1% annually over the past six years, but this year's demand for gas is expected to increase only 0.3% from last year, down from last year's annual growth of 0.4%.
But vapid demand hasn't caused gas prices to come down at all. The average price of regular gasoline rose overnight to $3.246 a gallon, according to motorist group AAA, setting a record high.
"Motorists who rely on their automobiles... are understandably upset," said AAA President & Chief Executive Robert L. Darbelne in a statement.
"Every extra dollar needed to fill up the car is a dollar not available for groceries, housing, education, vacations, paying off debt, and other key aspects of American families' lives," added Darbelne, who called on Washington to develop a long-term energy solution, as high fuel prices have dragged down consumer spending in an already struggling U.S. economy.
Though gasoline is selling at its highest price in history, gas prices are still below their peak when adjusted for inflation, according to the EIA. The record on that basis was $3.405 and set in March 1981.
The government report also showed distillates, used to make heating oil and diesel fuel, fell by 1.2 million barrels, which was slightly less than the 2 million barrel drop analysts had expected.
And refinery usage was a bit lower than the previous week, operating at 85% capacity last week, falling slightly short of estimates. Refineries tend to lower their capacity in March, as they retool to produce summer fuels.
After oil prices settled above $100 a barrel for the first time on Feb. 26, they have set record intraday highs in 11 of the last 12 trading sessions, including today's record high. Oil has not traded below $100 a barrel since March 5.
Oil prices have risen more than five-fold since 2002 and about 10% already in 2008. Most analysts blame rising demand and tight supply. That has also attracted floods of investment money, and exaggerated the effects of supply disruptions. First Published: March 12, 2008: 10:37 AM EDT
SUPPORT THE DOLLAR STUPID!!!!!!!!!!
Thanks I feel better now.
Thanks I feel better now.
Oil crosses record $110,
despite supply riseCrude prices hit $110.20 on weak dollar before settling at $109.92, even as crude and gasoline inventories are much higher than forecast.
By David Goldman, CNNMoney.com staff writer
Last Updated: March 12, 2008: 3:27 PM EDT
NEW YORK (CNNMoney.com) -- Oil prices rebounded to another record high Wednesday afternoon after initially plummeting when a government report said supplies of crude and gasoline had risen much more than expected.
In afternoon trading, U.S. light crude for April delivery surged to a high of $110.20 before closing at $109.92. Oil had traded as low as at $107.09 following the report's release on Wednesday morning.
In its weekly inventory report, the U.S. Energy Information Administration, a government agency that measures oil and gas supplies, said crude stocks rose by 6.2 million barrels last week. Analysts were looking for a rise of 1.6 million barrels, according to a Dow Jones poll.
Gasoline supplies rose by 1.7 million barrels, significantly more than the 300,000 barrel rise that analysts had forecast. The government said gasoline stockpiles are well above average for this time of year.
"The big number is the build in gasoline," said Stephen Schork, publisher of the industry newsletter the Schork Report. "We usually see a 2 million barrel draw at this time, not a surplus."
Since September, gasoline stockpiles have increased from a 16 million barrel deficit to a 22 million barrel surplus, which Schork believes is due primarily to the continuing low demand for gasoline.
Rising prices in spite of supply and demand. Typically, an increase in supply and low demand would result in much lower crude prices. But crude and gas prices continue to rise.
"This is all driven by speculation," said Schork, who believes that investors have poured money into the commodity to make some interest in a slumping economy. "That's why we've seen a jump from 20,000 to 90,000 contracts this month."
About an hour after the government report's release, oil rebounded to around the level of Tuesday's settle as investors continued to pour money into commodities.
"This market is not about supply and demand, it's about the dollar," said Alaron senior analyst Phil Flynn. "The dollar is weaker and investors are buying anything they can get their hands on."
Gas demand much lower. Still, oil's rebound is somewhat surprising given continued low demand for gasoline. Gas demand held steady last week, still averaging 9.1 million barrels per day over the past month. Demand is 0.4% higher than the same period last year.
The EIA revised its U.S. oil and gasoline demand forecasts downward Tuesday, citing a slow economy and high oil prices. The government agency now expects oil demand in the United States to grow just 40,000 barrels a day, or 0.2%, in 2008, down from 0.5% or 100,000 barrels a day in its previous forecast.
Since 2001, oil demand has grown an average of 0.9% annually or 175,000 barrels a day. In 2007, oil demand was statistically flat, growing only 10,000 barrels a day.
Gasoline demand has grown an average of 1% annually over the past six years, but this year's demand for gas is expected to increase only 0.3% from last year, down from last year's annual growth of 0.4%.
But vapid demand hasn't caused gas prices to come down at all. The average price of regular gasoline rose overnight to $3.246 a gallon, according to motorist group AAA, setting a record high.
"Motorists who rely on their automobiles... are understandably upset," said AAA President & Chief Executive Robert L. Darbelne in a statement.
"Every extra dollar needed to fill up the car is a dollar not available for groceries, housing, education, vacations, paying off debt, and other key aspects of American families' lives," added Darbelne, who called on Washington to develop a long-term energy solution, as high fuel prices have dragged down consumer spending in an already struggling U.S. economy.
Though gasoline is selling at its highest price in history, gas prices are still below their peak when adjusted for inflation, according to the EIA. The record on that basis was $3.405 and set in March 1981.
The government report also showed distillates, used to make heating oil and diesel fuel, fell by 1.2 million barrels, which was slightly less than the 2 million barrel drop analysts had expected.
And refinery usage was a bit lower than the previous week, operating at 85% capacity last week, falling slightly short of estimates. Refineries tend to lower their capacity in March, as they retool to produce summer fuels.
After oil prices settled above $100 a barrel for the first time on Feb. 26, they have set record intraday highs in 11 of the last 12 trading sessions, including today's record high. Oil has not traded below $100 a barrel since March 5.
Oil prices have risen more than five-fold since 2002 and about 10% already in 2008. Most analysts blame rising demand and tight supply. That has also attracted floods of investment money, and exaggerated the effects of supply disruptions.
First Published: March 12, 2008: 10:37 AM EDT
nnuut
Moderator | TSP Legend
Weak dollar launches oil to new record
Crude prices near $111 a barrel as dollar sinks to 12-year low versus yen.
Last Updated: March 13, 2008: 7:56 AM EDT
SINGAPORE (AP) -- Oil prices on Thursday soared above $110 a barrel as investors looked to commodities as a safe haven against the U.S. dollar's slide.
In Asia, the dollar sank to a 12-year low against the yen and hit a record low against the euro amid concerns about the flagging U.S. economy. Many analysts believe the greenback's decline is the reason crude futures have surged to new records in 12 of the past 13 sessions - including Thursday's record high - despite the fact that crude supplies have risen 10.2% since early January.
Crude futures offer a hedge against a falling dollar, and oil futures bought and sold in dollars are more attractive to foreign investors when the dollar is weak.[more]
http://money.cnn.com/2008/03/13/markets/oil_prices.ap/index.htm?postversion=2008031307
Crude prices near $111 a barrel as dollar sinks to 12-year low versus yen.
Last Updated: March 13, 2008: 7:56 AM EDT
SINGAPORE (AP) -- Oil prices on Thursday soared above $110 a barrel as investors looked to commodities as a safe haven against the U.S. dollar's slide.
In Asia, the dollar sank to a 12-year low against the yen and hit a record low against the euro amid concerns about the flagging U.S. economy. Many analysts believe the greenback's decline is the reason crude futures have surged to new records in 12 of the past 13 sessions - including Thursday's record high - despite the fact that crude supplies have risen 10.2% since early January.
Crude futures offer a hedge against a falling dollar, and oil futures bought and sold in dollars are more attractive to foreign investors when the dollar is weak.[more]
http://money.cnn.com/2008/03/13/markets/oil_prices.ap/index.htm?postversion=2008031307
Silverbird
Well-known member
Just another way of saying it's profitable to speculate on oil and too bad for everyone who has to buy it.
nnuut
Moderator | TSP Legend
Yes it's the old game of the haves get and the have nots pay.
nnuut
Moderator | TSP Legend
Crude hits new high of $111 a barrel on weak dollar
By Moming Zhou
Last update: 10:54 a.m. EDT March 13, 2008
SAN FRANCISCO -- Crude oil futures hit a new record high of $111 a barrel on Thursday as the dollar fell anew against the euro and yen. Crude oil for April delivery rose more than $1 to $111 a barrel in mid-morning trading on the New York Mercantile Exchange. It has been on the rise and making new records for four consecutive days.
http://www.marketwatch.com/news/sto...CC-C5E5-45A5-8457-124CEC07F230}&dist=morenews
By Moming Zhou
Last update: 10:54 a.m. EDT March 13, 2008
SAN FRANCISCO -- Crude oil futures hit a new record high of $111 a barrel on Thursday as the dollar fell anew against the euro and yen. Crude oil for April delivery rose more than $1 to $111 a barrel in mid-morning trading on the New York Mercantile Exchange. It has been on the rise and making new records for four consecutive days.
nnuut
Moderator | TSP Legend
Oil prices retreat from record $111
As the dollar tanks, investors seek safety in commodities, bringing down the price of crude from its record last session.
March 14, 2008: 7:39 AM EDT
SINGAPORE (AP) -- Oil prices retreated Friday from a record of $111 a barrel hit in the previous session as investors fled the declining dollar in search of a haven in commodities.
Analysts attributed the decline as part of the volatility that has characterized crude futures trading in recent weeks [more]
http://money.cnn.com/2008/03/14/markets/Oil_prices.ap/index.htm?postversion=2008031407
As the dollar tanks, investors seek safety in commodities, bringing down the price of crude from its record last session.
March 14, 2008: 7:39 AM EDT
SINGAPORE (AP) -- Oil prices retreated Friday from a record of $111 a barrel hit in the previous session as investors fled the declining dollar in search of a haven in commodities.
Analysts attributed the decline as part of the volatility that has characterized crude futures trading in recent weeks [more]
http://money.cnn.com/2008/03/14/markets/Oil_prices.ap/index.htm?postversion=2008031407
Silverbird
Well-known member
Energy Department floats public-private plan for nuclear waste dump
WASHINGTON - Energy Department officials trying to promote nuclear power are suggesting that private industry assume some responsibility for the country's nuclear waste.
Edward F. "Ward" Sproat said Thursday that the idea could ensure more stable management and financial support for the long-delayed Yucca Mountain nuclear waste dump project in Nevada that he manages.
"I do think that providing some sort of an organization with legislative fiat that provides that stability and fixes some of these institutional problems is a good idea," Sproat said after addressing a conference of nuclear regulators. "But it's got to be done right."....
The idea of a public-private partnership to manage Yucca Mountain and other elements of spent fuel disposal has support from the nuclear industry and is garnering some interest on Capitol Hill. But the change would require legislation that also would have to deal with the liability to utilities and dedicating money from a special nuclear waste fund paid into by utilities, according to Sproat. No one thinks that could come about anytime soon.....
http://www.cnbc.com/id/23619951/for/cnbc/
Ya'll aren't reasurring me here.
WASHINGTON - Energy Department officials trying to promote nuclear power are suggesting that private industry assume some responsibility for the country's nuclear waste.
Edward F. "Ward" Sproat said Thursday that the idea could ensure more stable management and financial support for the long-delayed Yucca Mountain nuclear waste dump project in Nevada that he manages.
"I do think that providing some sort of an organization with legislative fiat that provides that stability and fixes some of these institutional problems is a good idea," Sproat said after addressing a conference of nuclear regulators. "But it's got to be done right."....
The idea of a public-private partnership to manage Yucca Mountain and other elements of spent fuel disposal has support from the nuclear industry and is garnering some interest on Capitol Hill. But the change would require legislation that also would have to deal with the liability to utilities and dedicating money from a special nuclear waste fund paid into by utilities, according to Sproat. No one thinks that could come about anytime soon.....
http://www.cnbc.com/id/23619951/for/cnbc/
Ya'll aren't reasurring me here.