Posted on 08/28/2005 4:26:56 PM PDT by lauriehelds
SINGAPORE, Aug 29 (Reuters) - U.S. crude oil futures surged more than $4 in opening trade on Monday, hitting a new record high above $70 a barrel after Hurricane Katrina forced Gulf of Mexico producers to shut in more than a third of their output.
Katrina, which strengthened into a rare, maximum power Category 5 hurricane as it spun through key oil and gas fields toward New Orleans, shut in a total 633,000 barrels per day
(bpd), according to company figures on Sunday.
It also forced the closure of seven refineries and a major U.S. crude import terminal.
Crude oil futures on the New York Mercantile Exchange
(NYMEX) surged as high as $70.80 a barrel, up $4.67 a barrel, as traders feared lasting damage could further strain an industry that has struggled to keep up with demand for two years.
"the price increase IS NOT NECESSARY -- just profiteering opportunism -- that is the point I am trying to make."
What do you propose?
""Good!!! Go by the reserve in the AM and fill up. Don't even bother about try to find somewhere to refine it because the refinery in NO will be under water and so will some of the reserves in LA and TX.""
can you provide some documentation for that? that refineries will be underwater as far away as TX
It was just an opinion.
Guess what you can do with yours?
What is a decent profit?
I think you are spot on.
The surest way to cause a shortage is for everyone to buy more than usual"just in case". Our economy has so widely and foolishly embraced the "just-in-yimke" concept thatthere is little storage of anything. Plus our greedy politicians tax inventory discouraging further the prudent storage of supplies.
""Our economy has so widely and foolishly embraced the "just-in-yimke" concept thatthere is little storage of anything.""
not only do I not believe the first part of your post, but your quote is totally untrue...right now there is mroe oil in inventory than at anytime since 1999 and YR/YR oil inventories are up by 10% or 31m barrels
Whats the point of stockpiling a bunch of crude oil if refining it is where the problem is? Isn't there a cheaper way of refining than what we are presently using? We have tons of open land that isn't doing anything in this country?
Law school class.
I'm not so sure the Federal government will refrain from intervening with subsidies, bailouts, etc. Couldn't such interventions get in the way of corrective market forces? (at least for a time)
I would expect some airline liquidations at $80, that will increase supply.
This would be an example of the above. If the entire airline industry gets in trouble, I can't imagine our compassionate government not stepping in.
Well, I for one am convinved that the arab terrorists and their followers (Soros and company) have deliberately been manipulating the oil futures market as well as rumor spreading..(the oil is all gone (they said that in the 20s too!))
I am thinking too that many investors are going with their pocketbooks to follow the oil surge (hoping they know when to jump out).
No wonder the demonrats dont want any drilling here at home or new refineries built...it gives them an issue!
So what are your options' strike price at? When do they expire?
In general, yes. But the guy he was talking to was already "well to the left" of DU ! ;-)
Cheers!
I wish I'd thought of that :-)
So???
Now we just need old Chavez to cut us off for spite!
TLR
Cannondale, Trek, Giant, etc. Lance Armstrong, Greg LeMond.
Full Disclosure: I bet Harley Davidson would spike before any of them.
LOL. Then it can be Pat Robertson and all the other Christians' fault, too.
God forbid a company makes a profit.. Besides who are we to decide in how much a company makes? No profits.. Company goes broke...
Except for us bicyclists. Some of the trails are helpful.
Full Disclosure: I've commuted in mid-summer in Phoenix in 110 degrees.(13 miles each way. And in Mineapolis in 15 degrees (11 miles each way).
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