Oil Slick Stuff

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Just talking can make Oil drop, what would happen if they announced they can started drilling? Don't give me all that delay stuff, we have to get started, and we won't hurt the darn fish!!:nuts:

Oil tumbles on Fed chief's bleak outlook

Bernanke indicates inflation and high fuel prices will cut in to U.S. demand for oil.

By Kenneth Musante, CNNMoney.com staff writer
Last Updated: July 15, 2008: 12:55 PM EDT

NEW YORK (CNNMoney.com) -- Oil prices plummeted Tuesday, down as much as $9.26 a barrel, as investors feared a further decline in U.S. demand after hearing comments from Federal Reserve Chairman Ben Bernanke.
Light, sweet crude fell $7.37 to $137.81 a barrel in electronic trading on the New York Mercantile Exchange. Earlier, prices dipped as low as $135.92, nearly $11 below the day's high.
"There's more demand destruction than people first perceived," said Neal Dingman, senior energy analyst at Dahlman Rose & Co.
Prices began to fall after Federal Reserve Chairman Ben Bernanke warned that high energy prices, coupled with serious problems in the financial sector, have sapped the purchasing power of U.S. households.
The mortgage crisis and high energy costs will remain a drag on the U.S. economy for the rest of the year, Bernanke told the Senate Banking Committee Tuesday. [more] http://money.cnn.com/2008/07/15/markets/oil/index.htm?postversion=2008071512
 
Oil inventories tomorrow at 10:30!!

AP
Oil prices plummet over $6 amid economic fears
Tuesday July 15, 3:19 pm ET
By Adam Schreck, AP Business Writer

Oil prices plunge in massive sell-off fueled by fears of US economic woes, OPEC forecast


NEW YORK (AP) -- Oil prices fell harder than they have in 17 years Tuesday, as fears that record fuel prices are spreading broad economic pain led to the third big sell-off in just over a week.
Light, sweet crude plunged $6.44, or 4.4 percent, to settle at $138.74 in an extremely volatile session. Prices at one point dropped more than $10 a barrel from the day's high.
The turnaround may not signal a lasting shift in sentiment -- prices have swung violently in recent days as they flirted with record highs. But it does underscore investor uncertainty about the sustainability of sky-high prices and potentially long-lasting effects on the broader economy.
"They're slamming this pretty good. But remember, these (big) moves are becoming a little more commonplace," said Phil Flynn, analyst at Alaron Trading Corp. in Chicago.
Earlier, the contract rose as high as $146.73 and fell as low as $135.92. Prices hit a record $147.27 Friday.
Federal Reserve Chairman Ben Bernanke told Congress that "numerous difficulties" are racking the economy of the world's largest oil consumer, and warned that rising prices for energy and food are elevating the risks of inflation. At the same time, the Labor Department reported that wholesale inflation jumped by 1.8 percent last month, a larger-than-expected gain. Over the past year, wholesale prices have risen 9.2 percent, the most since 1981.[,ore]
http://biz.yahoo.com/ap/080715/oil_prices.html
 
Crude falls the most in 17 years on economic concerns

SAN FRANCISCO (MarketWatch) -- Crude futures Tuesday closed down more than $6 a barrel, the biggest daily drop in more than 17 years, as concerns that slowing economic growth will dampen oil demand triggered a broad sell-off in energy commodities. Crude futures for August delivery ended at $138.74 a barrel on the New York Mercantile Exchange, down 4.4%, or $6.44, the biggest one-day drop in price for a front-month contract since January, 1991. Earlier the contract slumped $9.26, or 6.3%, to an intraday low of $135.92. Federal Reserve Chairman Ben Bernanke said Tuesday morning that the U.S. economy is facing "significant" risks to growth, while the Organization of the Petroleum Exporting Countries lowered its forecast for world oil-demand growth for 2008 and 2009.
Click to expand...
So much for all the baloney big oil has been feeding everyone about supply/demand driving prices up. Guess this proves OPEC is right, there's more supply than demand and price IS being driven by speculators; the biggest ones are the financials and big oil themselves. Watch how fast they turn off that extra 500K BOPD now that the specs are dumping it instead of buying it and the price is dropping. Is anybody still surprised that W didn't tap that high-priced oil in the SPR? BA knows that there's more supply than demand despite the phoney numbers published each week.

IMO this drop has very little to do with any of the factors in the headlines. It's more about Cox restricting shorts on Fannie/Freddie and the primaries and letting the cat out of the bag that a rule is pending to apply the same regulation across the board. That scared em into dumping their contracts while they could. Look at the timing of the drop and the announcement today.

This is just a momentary pullback in oil while the financials regroup - they and big oil are the biggest speculators in it. Have to keep the price below that $150 year-end target until November-December and it was escalating too fast. Today they dump the August contracts, bring the price down and reinvest the profit at a lower price on the September contracts, and help the dollar and WS a bit. Price will be creeping back up within 2 weeks. The goal is 100% increase 11/07-12/08 or $150 for 2008 end. Next, wait for OPEC to announce production cuts because of low demand - that will bring the price right back up.

We haven't felt the sticker shock yet for natural gas, that will come this winter.
 
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One of my friends at an un-named major financial institution says crude may be topping. Says if crude breaks $132, it's going to $120 and if it breaks $120, it can go to $105. Perhaps a 15-20 dollar 1 day drop.

If you have some cash, you may choose to put money into American and Continental airlines...they could seriously pop!
 
Also railroads and other transports. GM too...it's regrouping. Bargain prices. I'm staying away from financials for now but ready to jump on them.
 
Gas, diesel hit new records

Average price of unleaded gasoline and diesel fuel reach new highs.

NEW YORK (CNNMoney.com) -- Fuel prices rose to new record highs overnight, a nationwide survey of gas station credit card swipes showed Wednesday.
The average price of regular unleaded rose five-tenths of a cent to a fresh all-time high of $4.114 a gallon, according to a daily survey from motorist advocacy group AAA.
Gas prices have surged 35% in the past year and have weighed on consumers and businesses alike. High fuel prices are one of the factors squeezing Americans, causing them to limit vacation travel and cut back on driving.
Businesses and local governments have also had to change their operations to deal with the high costs.
The average price of diesel fuel, which is used to power most trucks and commercial vehicles, climbed nine-tenths of a cent to a record $4.839 a gallon, according to AAA. That's 64% higher than last year when diesel was cheaper than gas.
Gas prices are most expensive in Alaska, where prices average $4.634 a gallon. California come in second, with drivers paying $4.505 on average.
South Carolina has the cheapest prices for regular unleaded. Gas prices average $3.912 a gallon there.
Hawaii is the state with the highest diesel prices, while diesel is cheapest in Montana.
http://money.cnn.com/2008/07/16/news/economy/gas/index.htm?cnn=yes
 
Remember, gas and diesel prices today are from the high-priced oil 1-2 months ago. This weeks' low price will show up in September-October, if at all.
 
LMAO! What "surprise?" This Administration is know for "surges.":laugh::laugh::laugh::toung:

If you're not going to tap SPR (because you know there's no real demand for the extra oil), the next best thing is to put some numbers out there to boost the supply and bring the price down.

Next - OPEC cuts production in response to lessened demand. Prices go back up.
 
$133.71
Can't I at least dream that we may have at least one up day without the Nay Sayers knocking me back down on my BROKEN knees, AGAIN? Don't hurt me I'm harmless!:o
 
Whatcha think nnuut, are the 130's for real or just a tease???

nnuut said:
$133.71
Can't I at least dream that we may have at least one up day without the Nay Sayers knocking me back down on my BROKEN knees, AGAIN? Don't hurt me I'm harmless!:o
Click to expand...
 
Spaf said:
Whatcha think nnuut, are the 130's for real or just a tease???
Click to expand...
Well it's real today, but I think it's about time that there was a drop, look at the charts. Will it hold through the year? I don't think so, but should look nice about election time.:D
 
Speculators are caught by the short hairs :D... Bush's reality of Drilling offshore finally hit home (if Congress goes along with it)
 
:laugh: Let's hear one for LOWER TOMORROW!!!! 1

07/16/2008 - Updated 5:13 PM ET

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Crude down $4 as higher U.S. inventories surprise Jump of 3 million barrels reported; oil suffers biggest two-day drop since 1991
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By Moming Zhou, MarketWatch & Polya Lesova, MarketWatch

SAN FRANCISCO (MarketWatch) -- Crude-oil futures fell over $4 a barrel Wednesday, leaving crude with its biggest two-day drop in 17 years, after government data showed a surprise increase in U.S. petroleum inventories.
U.S. crude inventories rose 3 million barrels to stand at 296.9 million barrels in the week ended July 11, the Energy Information Administration reported. Analysts surveyed by energy-information provider Platts were expecting a drop of 3 million barrels.
"If there is anything that should keep the bulls in the corral while the bears feed in the berry patch, this EIA report is it," said James Williams, an economist at energy research firm WTRG Economics.
Crude for August delivery closed down $4.14, or 3%, at $134.60 a barrel on the New York Mercantile Exchange, the lowest since June 25. Crude has lost $10.58 over the last two sessions, the biggest two-day price drop since January, 1991. It's now 8.6% lower than the $147.27 record high hit last Thursday.
Earlier in the session, futures slumped $6.74 to an intraday low of $132, the lowest for a front-month contract
since June 12.

'Demand destruction'[more]
http://markets.usatoday.com/custom/...S&guid={ABE270BA-1E5C-4300-A641-FCD451DFEFF3}
 
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