Oil down to lowest level since May

Discussion in 'Off-Topic' started by snowcraig2.0, Jul 29, 2008.

  1. snowcraig2.0

    snowcraig2.0 Well-Known Member

    Nov 2, 2007
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  2. JonDMiller

    JonDMiller Well-Known Member

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    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.
     
  3. cloneu

    cloneu Well-Known Member

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  4. RyCy04

    RyCy04 Well-Known Member

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    Hummer?? Grow a pair and get a real truck.
     
  5. wartknight

    wartknight Well-Known Member

    Mar 24, 2006
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    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.
     
  6. herbicide

    herbicide Well-Known Member

    Mar 23, 2006
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    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.
     
  7. dmclone

    dmclone Well-Known Member

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  8. Bader

    Bader Well-Known Member

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    Interesting, if you switch it to Des Moines, you can see the price of gas tends to reflect changes in price of crude quite a bit.

    NYNY doesn't seem to do that too much
     
  9. wartknight

    wartknight Well-Known Member

    Mar 24, 2006
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    So oil is the same as it was in May, but gas is still $.30 more right now than it was then.
     
  10. Phaedrus

    Phaedrus Well-Known Member

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    Whoa.... I just agreed with Jon Miller. Somebody pinch me?!
     
  11. dosry5

    dosry5 Well-Known Member

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    Not while you're wearing that skirt....
     
  12. Knownothing

    Knownothing Well-Known Member

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    I just ran out into my yard and dumped a gallon a gas on the ground for no reason. That is how cheap it is now.
     
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  13. CYKOFAN

    CYKOFAN Well-Known Member

    Mar 27, 2006
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    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.
     
  14. Cydkar

    Cydkar Well-Known Member

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    How much is grass seed? :smile:
     
  15. Cyclonepride

    Cyclonepride Thought Police
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    Add in lifting the executive ban on offshore drilling, and I am with you.
     
  16. herbicide

    herbicide Well-Known Member

    Mar 23, 2006
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    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.
     
  17. Wesley

    Wesley Well-Known Member

    Apr 12, 2006
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    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.
     
  18. Wesley

    Wesley Well-Known Member

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    The near term Israeli elections will also affect the price of Middle Eastern Texas Tea.
     
  19. JonDMiller

    JonDMiller Well-Known Member

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    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)
     
  20. ISU4ME

    ISU4ME Well-Known Member

    Aug 26, 2007
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    hawkeye nation going into a full melt down? Oil prices dropping?

    Coincidence? Just to be safe, let's hope the hawkeye nation continues its path to complete destruction :wink:
     

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