I am eying one of those nice Hummers everyone is talking about.....
Oil falls to $121, lowest since May | Markets | Hot Stocks | Reuters
Oil falls to $121, lowest since May | Markets | Hot Stocks | Reuters
Oil down to lowest level since May
- Thread starter snowcraig2.0
- Start date
The president of OPEC, Chakib Khelil, on Tuesday called the current price "abnormal" and said he did not think the producer group should consider cutting output should prices continue to fall as markets were now balanced.
Khelil, who is also Algeria's oil minister, said oil could fall to $70 to $80 in the long term, if the U.S. dollar continued to strengthen and geopolitical concerns eased.
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Now where have I heard that before?
Oil was bound to burst, because it was loaded by a spec frenzy...and traditional market factors were being overshadowed by emotion and the impact of the big funds...
The main traditional factor that has been in oil is the weak dollar. I would hardly paint a rosy outlook for the dollar just yet, however.
Khelil, who is also Algeria's oil minister, said oil could fall to $70 to $80 in the long term, if the U.S. dollar continued to strengthen and geopolitical concerns eased.
-----
Now where have I heard that before?
Oil was bound to burst, because it was loaded by a spec frenzy...and traditional market factors were being overshadowed by emotion and the impact of the big funds...
The main traditional factor that has been in oil is the weak dollar. I would hardly paint a rosy outlook for the dollar just yet, however.
Picked up mine the other day when I saw gas get below $3.70. Roadtripping time!
I'm curious, does anyone know what a gallon of gas cost when oil past 121 on the way up. I would wager to guess a lot less than it does now.
I would really like to see a chart/graph of the cost of oil in euro's. I'd bet it is a lot flatter than the cost of oil in USD.
This is a chart that does that. Go to the bottom and select "usa average"
Historical gas price charts - New York City Gas Prices
Historical gas price charts - New York City Gas Prices
The president of OPEC, Chakib Khelil, on Tuesday called the current price "abnormal" and said he did not think the producer group should consider cutting output should prices continue to fall as markets were now balanced.
Khelil, who is also Algeria's oil minister, said oil could fall to $70 to $80 in the long term, if the U.S. dollar continued to strengthen and geopolitical concerns eased.
-----
Now where have I heard that before?
Oil was bound to burst, because it was loaded by a spec frenzy...and traditional market factors were being overshadowed by emotion and the impact of the big funds...
The main traditional factor that has been in oil is the weak dollar. I would hardly paint a rosy outlook for the dollar just yet, however.
Whoa.... I just agreed with Jon Miller. Somebody pinch me?!
No doubt the value of the dollar has a major long term effect on the price of oil, and with record deficits, there is not a rosy outlook as John said. But the price peaked as the rhetoric against Iran peaked (including the Israeli bombing exercises). Once the threats stopped and it looked like Bush was actually softening his stance and considering talks, the price broke and has been going down ever since. Iran's President what's his name also said he is encouraged by the change in attitude and is encouraged it may lead to improved relations. I would bet the farm that if it looks like us or Israel is again moving toward bombing Iran, the price will spike again.
All these things definitely effect it, methinks the real reason oil prices are dropping is investors are pulling their money out of it, for a multitude of reasons including those threats.
Less investors buying futures = lower oil costs.
Honda is having a two for one sale on Pilots. Time to go hog wild.
And, if you be a Dodge fan, take the rebate money and the $2.99 gallon gas offer.
Heard Ford powers are reconvening next week to reopen some truck plants.
Oil is dropping like a rock - last week is was $147 a barrel.
Heard the tankers are turning around and headed back to the Strait of isthmus as we speak.
The whole economy may actually survive ands we may never declare an official recession.
Interest rates may not have to be raised because inflation will melt.
Oh, it is good, to be an American consumer.
Now we can more fully refocus on Al Gore's global warming diatribes and forget drilling Anwar. Al really needs to downsize for people to accept his message. I mean, a carbon footprint ten times above average just does not play well in Schenecdacty, NY.
And, if you be a Dodge fan, take the rebate money and the $2.99 gallon gas offer.
Heard Ford powers are reconvening next week to reopen some truck plants.
Oil is dropping like a rock - last week is was $147 a barrel.
Heard the tankers are turning around and headed back to the Strait of isthmus as we speak.
The whole economy may actually survive ands we may never declare an official recession.
Interest rates may not have to be raised because inflation will melt.
Oh, it is good, to be an American consumer.
Now we can more fully refocus on Al Gore's global warming diatribes and forget drilling Anwar. Al really needs to downsize for people to accept his message. I mean, a carbon footprint ten times above average just does not play well in Schenecdacty, NY.
The near term Israeli elections will also affect the price of Middle Eastern Texas Tea.
The value of the US dollar and the geopolitical climate have been big culprits in the run up, in addition to spec buying.
Supply and demand factors, while not exactly bearish in a global sense, are certainly not on par with the immense run up.
Keep an eye on the dollar, which is not going to strengthen over night as the US keeps printing more money, always keep an eye on Iran and other middle east powder kegs, and keep an eye on congress to see if they try to create law to keep big hedge funds out of commodities markets.
We are mostly through peak driving season here in the US...and people are doing things to curtail demand during that peak driving time...OPEC sees this, and they are not going to raise outputs. They have said as much. I tend to agree with them that those factors are not what is driving crude, and them flooding the market with crude was going to be a band aid during the time when a fly fart was spooking the market.
Now, and if oil can break through that $120 barrier to the downside, something will have to happen geopolitially to send it back up again in the near term....while demand and spec involvement could decrease in the near term...which will soften it even more.
We won't see $50, maybe ever again.....but $70 to $80 is a possibility with some level of global calm, remove the spec players, and people moving to more responsible fuel consumption measures (the death of the SUV, etc)
Supply and demand factors, while not exactly bearish in a global sense, are certainly not on par with the immense run up.
Keep an eye on the dollar, which is not going to strengthen over night as the US keeps printing more money, always keep an eye on Iran and other middle east powder kegs, and keep an eye on congress to see if they try to create law to keep big hedge funds out of commodities markets.
We are mostly through peak driving season here in the US...and people are doing things to curtail demand during that peak driving time...OPEC sees this, and they are not going to raise outputs. They have said as much. I tend to agree with them that those factors are not what is driving crude, and them flooding the market with crude was going to be a band aid during the time when a fly fart was spooking the market.
Now, and if oil can break through that $120 barrier to the downside, something will have to happen geopolitially to send it back up again in the near term....while demand and spec involvement could decrease in the near term...which will soften it even more.
We won't see $50, maybe ever again.....but $70 to $80 is a possibility with some level of global calm, remove the spec players, and people moving to more responsible fuel consumption measures (the death of the SUV, etc)
