Crude set to stretch loss streak to 7 sessions ~ U.S. embassy in Syria attacked; effort is foiled

MarketWatch ^ | Sep 12, 2006 12:07 PM ET | Myra P. Saefong, MarketWatch

[Ernest_at_the_Beach]

SAN FRANCISCO (MarketWatch) -- Crude futures inched lower Tuesday, with jitters over an attack on the U.S. embassy in Syria offering little support as traders digested the latest estimates for global oil demand and a decision by key oil producers to stand pat on output quotas and looked ahead to Wednesday's U.S. petroleum supply data.

Prices were ready to mark a seventh-losing session, after dropping almost 7% over the past six trading days.

The Paris-based International Energy Agency cut its estimates Tuesday for global oil-product demand in 2006 and 2007.

That report "helped pressure us down after the terror attack ... in Syria," said Alaron Trading Analyst Phil Flynn. Also, "a report that Iran will work to stop the insurgency in Iraq pressured trade," he said.

Crude for October delivery was last down 51 cents at $65.10 a barrel on the New York Mercantile Exchange after tapping a low of $64.85. That matched Monday's intraday low, which was the weakest level the contract has seen in nearly six months.

Among the products, October unleaded gasoline edged up 0.54 cent to $1.60 a gallon, while October heating oil added 0.66 cent to $1.812 a gallon.

Four armed men attacked the U.S. embassy in Damascus by throwing a grenade into the embassy compound and by trying to detonate a car bomb, media reports said. The attack was foiled, however, with the attackers either killed or wounded. There were no indications of U.S. casualties. Read more.

[ClearCase_guy]

We're DOOMED!

Crude is lower!
An attack on our embassy was foiled!

Nothing but bad news! But, on the bright side, some folks do have "jitters". Unfortunately, that's not having much of a negative effect on things (yet).

[Ernest_at_the_Beach]

The DU types are showing up and going medieval on the MarketWatch Forum:

US Politics Message Index

[norraad]

"Myra saefong is a ding dong!"

[Post-Neolithic]

Don't kid yourselves, the speculators have an itchy finger on the oil price button. Whatever pops up that they can say will hurt oil production/consumption(In their greedy minds), will send them on a price hiking frenzy.

Just the mention of the Syria incident this morning had them pushing that button gleefully, never mind that it had nothing to do with oil.

However once word got out that it was nothing, they had no choice but to go back to watching that button.

I have said it before and I will say it again, Supply and Demand my rump. Speculators control oil prices not the consumer.

[rightwingextremist1776]

So, please explain how the speculators did during the $11.00 a barrel days? Their fingers must have slipped off the button back then eh?

[thackney]

Speculators can make money on the price going down as easily as it going up. A steady high price is not driven by speculation. If a speculator buys futures at $75 a barrel and sells it at $75 barrel it cost them money for the trade.

[traditional1]

I have the distinct impression that the Islamists are shorting oil futures, and planning an event to spike the prices and cash out for more Russian, French, Chinese, and German arms purchases....any ideas?

[Post-Neolithic]

Different times. Different people. Greed is the buzzword for most Oil Speculators now. Not saying that it wasn't back then, just not as much. Percentage wise the global oil demand is still at or below what it was during the $11.00 per barrel days.

How would you explain Goldman & Saks idiotic statement that oil was going to hit $100.00 per barrel within a few months last year? Don't suppose it was because they had the highest investment in oil related stocks of any other company?

Nah, that couldn't be it. Or this mornings price on oil going from negative to positive on the Syrian incident? Or the jump in crude because some idiot said that there might be a Hurricane forming in the Atlantic?

I could name 100's more incidents that prove my point but those will suffice.

[Wristpin]

That was before Clinton deregulated the commodities markets.
It's not the same playing field today.

[hawkaw]

I see crude nose dived today ... down about a 1.90 and gasoline futures also dropped a few more pennies as well.

[thackney]

The energy commodities market was regulated in 1999?

[Wristpin]

December 2000.

http://www.americanthinker.com/articles.php?article_id=5747

[thackney]

Thank you. Oil future contracts are a global commodity and traded on several exchanges. Was this a global change or just a change to allow American markets to do the same as the rest of the markets?

[ArmstedFragg]

Islamists are shorting oil futures, and planning an event to spike the prices

If they've found a way to make money by being short on a commodity when the price goes UP, they're smarter than we are.

[RightWhale]

Crude futures inched lower Tuesday

$1.80 down is not a foot, but it is more than an inch.

[traditional1]

I believe the price may be coming down BECAUSE they're shorting them, and they will cash out soon......

[ArmstedFragg]

Ah, okay, now I follow you....

[Ernest_at_the_Beach]

Retail gasoline prices are still up there $2.75 to 2.95...for 87 grade.

[RightWhale]

Most commoldities have bounced up a little this morning, except natural gas at $5.50. Retail gasoline in Fairbanks remains $2.89, similar to northern and northwest states.