Oil Slick Stuff

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Let's get back on the topic of Lubricants, shall we?

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Friday, June 13, 2008

British Balk At Curbing Oil Speculators
Oil goes up a dollar, stocks fall a few hundred points. Oil falls a dollar, stocks go back up.

With oil prices whipping the stock market up and down like a rag doll, the role of speculators in cornering the oil market is becoming a major economic problem. While some oil speculators in New York are limited in how much of the market they can control, the British government does not regulate how much of American oil British speculators can hold. In a striking analogy to the Boston Tea Party, the British government is taking a hands-off attitude toward modern-day "Texas Tea" pirates who are holding consumers hostage to outrageous oil prices. According to an article in Friday's edition of Times of London:


The Americans want to cap the amount of particular oil contracts that a trader can hold. The moves would limit the ability of a trading firm or individual trader to corner the market in one type of futures oil contract.
That "one type of futures oil contract" is the West Texas Intermediate oil contract. The CFTC has urged the FSA (Financial Services Authority) to impose limits on the positions that traders can take on the West Texas crude oil futures contract, bringing British traders in line with their American counterparts.

The British contend that high oil prices are due to OPEC keeping supplies tight, while OPEC denies it. And, in fact, figures from OPEC support their view that there is a 500,000-barrel per day surplus of oil on the market right now. That view is backed up by Takao Kitabata, Japan's vice minister for economy, trade and industry, who says that current oil prices of $130-$140/barrel can't be explained by fundamentals and blames speculative fund managers for pushing up prices.

In a related article slated to appear on Friday, the Times suggests that Rising oil prices are on a slippery slope to disaster.

At some point very soon, the governments of the world need to take concerted action to stem this, the greatest crisis of the post-Great Depression period, or risk a repeat performance of that depression.

Late in the day, Reuters reported that:


A U.S. congressional source told Reuters on Thursday that the U.S. Commodity Futures Trading Commission and Britain's Financial Services Authority are working on a deal to impose position limits for the first time on U.S. crude oil contracts traded on the ICE futures Europe exchange.
An OptionsXpress spokesperson said, "There's probably a feeling among the hedge fund and index fund community that there is a big target on their backs." The same might be said for traders in commodity ETFs, which may get the blame for high oil prices before too much longer.

Stocks ended slightly higher as they continue being crushed by high oil prices:

http://marketclues.blogspot.com/
 
I think thats a fine Idea Robo if that IS the cause of this run up in the price of Oil and Gas. Those Hedge Funds are suckin' us dry!:nuts:

Oil tumbles, gas prices climb

Crude prices dip but are expected to recover. Gas prices set another record high.

Last Updated: June 13, 2008: 7:31 AM EDT

VIENNA, Austria (AP) -- Oil prices fell Friday in volatile markets, with traders anticipating prices will rise on demand concerns.
The price for a barrel of oil has swung back and forth in a $10 range over the past week.
"There is no driver out there to cause prices to break out of this range yet," said Victor Shum, an energy analyst with Purvin & Gertz in Singapore. The overall market trend is still upward. There are still many supply side concerns that will continue to support prices at high levels."
By noon in Europe, light, sweet crude for July delivery dipped $1.47 to $135.27 a barrel in electronic trading on the New York Mercantile Exchange.
Oil derivatives have also swung wildly, with gasoline punishing drivers at the pump.
"A pre-lunch selloff yesterday on the NYMEX segued into a post-lunch shortcovering rally," said trader and analyst Stephen Schork in his daily Schork Report, noting that in the case of gasoline, "a 9.66 cent loss in the morning morphed into a 6.02 cent gain by the close."
Gasoline futures were trading at $3.5025, down by over two pennies over Thursday's close.
Meanwhile, retail gas prices rose six-tenths of a cent to another record high of $4.066 a gallon on average nationwide, according to motorist group AAA. This is the seventh consecutive increase and the sixth straight record for gas.
The price of a gallon of gas is now $4 or more in 27 states and the District of Columbia. Gas prices are highest in California at $4.564 a gallon, followed by Alaska at $4.427 and Connecticut at $4.364. The lowest gas prices can be found in Missouri, where a gallon of gas costs $3.843 on average.
July heating oil futures were essentially steady at $3.9405 a gallon, and July natural gas futures dipped by more than 4 cents to $12.77 per 1,000 cubic feet.
Jitters over output. Oil prices shot higher Thursday on reports that Nigeria's state-owned oil company will take over oil operations in parts of the country from a Royal Dutch Shell PLC (RDS.A) joint venture, sparking fears it may cut output.
"Production will probably fall down after these guys take over," said Phil Flynn, an analyst at Alaron Trading Corp., of reports that Nigerian National Petroleum Corp. plans to take over operations from Shell in Nigeria's southern Ogoni district.
Nigeria, Africa's top oil producer, is a major U.S. oil supplier. Its output has already been significantly curtailed by years of militant violence.
Concerns of a possible strike by Nigerian oil workers also contributed to the market's late rally, when oil prices surged from a low of $131.55 a barrel to settle at $136.74 late Thursday in New York.
Oil touched a trading record of $139.12 last Friday. Analysts say oil is "range-trading," waiting for direction from a significant move in the dollar or change in supply and demand fundamentals.
A factor that could send crude prices lower was a report Thursday from British-based tanker tracking firm Oil Movements saying OPEC oil shipments are on track to rise by nearly 400,000 barrels a day in June.
http://money.cnn.com/2008/06/13/markets/oil.ap/index.htm?postversion=2008061307
 
But there are still days when they rise and fall together. Oil prices are still linked to oil stocks, and oil stocks are supporting the market. Take those away and you have a crash that happened months ago.
 
Yes Oil and Gas are linked to stocks, some days Oil goes up and stimulates the markets. Other days they go up and CRASH the Markets, lately it's the CRASH/CRASH thing. :cool:
 
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Oil retreats after OPEC questions volatility

'Current price levels do not reflect supply and demand realities,' says the oil cartel. Gas prices continue to climb.

Last Updated: June 13, 2008: 12:59 PM EDT

NEW YORK (AP) -- Oil prices pulled back Friday after OPEC questioned whether crude can remain so high through the rest of the year and the dollar gained against the euro. Meanwhile, U.S. filling station operators pushed average gas prices deeper into record territory.
Light, sweet crude for July delivery sank $2.19 to $134.55 a barrel on the New York Mercantile Exchange.
In its monthly market report, the Organization of Petroleum Exporting Countries said oil's recent volatility - the price for a barrel has swung back and forth in a $10 range over the past week alone - "reconfirms the view that current price levels do not reflect supply and demand realities."
Looking ahead to the second half of the year, the cartel said: "A review of the prospects ... also shows little support for prices to remain at current levels."
OPEC lowered its 2008 global demand forecast, saying it now expects demand to increase by 1.28% to an average of 86.9 million barrels per day, down from a previous forecast of 1.35%.
Oil prices have fluctuated widely since they surged nearly $11 in a single session to a trading record above $139 a week ago.
Some investors believe prices could yet push higher. Analysts call oil's current wavering "range-trading," as traders await direction from a significant move in the dollar or change in supply and demand fundamentals.
"There is no driver out there to cause prices to break out of this range yet," said Victor Shum, an energy analyst with Purvin & Gertz in Singapore. "The overall market trend is still upward. There are still many supply side concerns that will continue to support prices at high levels."
Dollar rebound. A stronger dollar helped keep oil prices in check. The greenback gained against the euro after a Labor Department report showed consumer prices rose by the biggest increase since November, helping alleviate concerns that growing inflation could force shoppers to tighten their belts.[more]
http://money.cnn.com/2008/06/13/markets/oil.ap/index.htm?postversion=2008061312
 
Man I sure feel better about the dollar now. :nuts: I can afford a much bigger dip in the dried bean barrel at Super Wallyworld. Can't wait for those 9-Packs of red weenies to make their way to the cold grocery shelfs too. :D
nnuut said:
The greenback gained against the euro after a Labor Department report showed consumer prices rose by the biggest increase since November, helping alleviate concerns that growing inflation could force shoppers to tighten their belts.[more]
http://money.cnn.com/2008/06/13/markets/oil.ap/index.htm?postversion=2008061312
Click to expand...
 
The greenback gained against the euro after a Labor Department report showed consumer prices rose by the biggest increase since November, helping alleviate concerns that growing inflation could force shoppers to tighten their belts.
Click to expand...
that makes absolutely no sense at all to me. An increase in prices alleviates concern about the effects of growing inflation?

What exactly do the yoyos think inflation is?:blink:
 
It seems the DUMMIES are still buying, "to hell with inflation I want that Big Screen TV" thanks for the Dough Pres Bush!!:suspicious:
 
A Bull Market Sees the worst in [commodity) Speculators
By DIANA B. HENRIQUES
Published: June 13, 2008
New York Times

In Washington, financial speculators have fat targets on their backs.

......The actual picture is more complex, Mr. Horsnell said. Many institutional investors constantly adjust their positions to maintain a fixed percentage of their portfolio in commodities, he said.
Thus, a pension fund that wants to put no more than 2 percent of its assets in commodities will have to sell some of its stake when its value rises above that percentage limit.
So, as in other markets, these investors “are stabilizing forces because when the asset goes up in value, they sell some to put their portfolios back into balance,” he said.
But the sheer size of the money flowing into commodity futures has become the most important fact about it.
According to Barclays research, about $200 billion in managed assets was invested in commodities at the end of 2007 — up from barely measurable levels just seven years ago. Latest estimates suggest that figure rose to $230 billion in the first four months of this year, but at least half of that growth came from rising commodity prices, not new money flowing in, Mr. Horsnell said.
He said that this entire investment stake is dwarfed by the amount of money invested in, say, ExxonMobil. But the commodity markets are much smaller than the equities markets, and this flood of new capital is a once-in-a-lifetime occurrence.....
http://www.nytimes.com/2008/06/13/business/13speculate.html?pagewanted=1&th&emc=th
 
$5 Gas Likely by July 4th; Get Ready for 'Stay-cation'
By Jeff Cox, Special to CNBC.com
13 Jun 2008 | 03:40 PM ET

Americans could be celebrating the Fourth of July with $5-a-gallon gas, and the effects will ring out from sea to shining sea.
As consumers use more of their income to fill up their gas tanks, they'll have less to spend on discretionary items like new bathing suits to wear to the beach and jewelry to accessorize.
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Instead of visiting theme parks and ballgames, they'll be more inclined to find fun things to do at home--"stay-cation" has quickly embedded itself in the American lexicon--and will cook burgers and hotdogs on the grill before heading out to a fancy restaurant.
These are just some of the behavioral changes economists and investment advisors are anticipating as the U.S. enters a new age of energy prices and inflation.
While economic data released Friday showed that core inflation remains stable even as gas prices soar, that's been of little comfort to many consumers.[more]
http://www.cnbc.com/id/25140711
 
Being an optimist, I'm thinking the wife will buy 4 bathing suites instead of
going to the shore. I'm also setting up a ticket booth for some added
income. (swim at your own risk). The only thing I fear more then inflation,
is the evil floating Baby Ruth bar that will kill our entire summer & budget.
:nuts:
 
Yeah, you know how those females are, we are having ANOTHER Pool Party today and my Wife, two Daughters and Grand Daughter ALL bought NEW bathing suits. I have 2 the neweat is 2 years old.
A friend has a sigh at his Swimming Pool it says (I think)
THE LEWIS'
OOL
Swim at your own risk
No running
No glass containers
NO Sun screen
You notice there is no "P" in pool
LET'S KEEP IT THAT WAY!!

I guess we could make a OOP sign?:laugh:
 
OOL PARTY TODAY and it's raining Cats and Dogs, wouldn't Ya know it!! Pop Up storms all over the place, must be Global Warming? Food is done though, Smoked Beef Brisket, Cilantro Garlic Pecan Smoked Chickens and all the trimmings. If it don't quit there is still food and Margareta's!! View attachment 4075
 
Gas prices hit all-time high

National average price keeps climbing - up more than a third in price from a year ago.

June 15, 2008: 8:33 AM EDT




NEW YORK (CNNMoney.com) -- Gasoline prices hit yet another record Sunday, with more than half the nation's states paying more than $4 per gallon on average, according to a daily survey from motorist group AAA.

The national average price for regular unleaded gasoline climbed slightly to $4.077 a gallon, according to AAA's Web site.
The average topped $4 for the first time last week after crude oil prices surged to a trading record above $139 per barrel. The price has swung back and forth in a $10 range since then.
Gas is most expensive in California, according to the survey, averaging $4.597, followed by Alaska at $4.436.
Missouri has the lowest average price at $3.834, followed by Oklahoma at $3.846.
Gasoline prices in the survey have risen 35 percent from a year ago when they averaged $3.018.
On its Web site, AAA says the information is gathered by Oil Price Information Service based on credit card swipes at 85,000 gasoline stations across the nation.
http://money.cnn.com/2008/06/15/news/economy/gas/index.htm?postversion=2008061508
 
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