I do.
Combined with OPEC continued hold-back in production, Iran and Venezuela's threats, a weak dollar and some other market nervousness. I don't see it holding this price; but I must admit, I've thought that for some time.
Posted on 02/28/2008 6:13:53 PM PST by bjs1779
The price of oil shot to a new high last night as Wall Street traders bought fuel contracts to offset the falling value of the dollar.
Energy traders were also unnerved by a fire at Shell’s Bacton gas terminal in Norfolk, which threatened more than 45 million cubic metres of gas supplies, about 13 per cent of National Grid’s forecast demand. The blaze – which started at 6pm – was extinguished. National Grid sought to reassure markets that the facility, the third-largest in the UK, was still receiving adequate supplies.
Light sweet crude oil for April delivery rose $2.95 to $102.59 a barrel in New York. Even after the market had closed, in after-hours trading, sweet crude continued to rise to $102.97. However, taking inflation into account, the price of oil is still lower than the record set in 1980, which by some calculations hit $104 a barrel.
Yesterday the price surged after US growth data showed that the world’s largest economy had expanded by just 0.6 per cent in the fourth quarter. While a slowing economy usually hits demand for oil, traders appeared to be buying sweet crude contracts as a hedge or as a means of offsetting the weakness of the dollar.
(Excerpt) Read more at business.timesonline.co.uk ...
We need to drill. Like in national emergency.
Washington likes it, the farmers like it, that leaves us out of the process.
I've had a sailboat for a while now and it really is the answer for me. Family responsibilities are the only thing still keeping me in the system.
Yes. I worked in the oil field in the early 80s. I killed weeds and drained saltwater. My point however, I learned a whole lot about drilling, formations, logging and others issues. I worked with engineers that knew what they were doing. I went to college, I have a degree...while not in petroleum, it's related. Drill, Drill!
Heck, I figure if I ever get fired from my current job, I'm gonna roustabout in Alaska. I may only last a day, but at the pay rate, it's worth a shot.
Nice to meet you! Thanks.
Believe me, I am on your side.
We seem to be completely on the same side with regards to the ethanol issue. Gas prices are not internal to the US. Market speculators on an international level have driven them up. Pump prices are an obscene combination of this and taxes.
Mortgage rates are set by the bond markets, not bankers.
I do.
Combined with OPEC continued hold-back in production, Iran and Venezuela's threats, a weak dollar and some other market nervousness. I don't see it holding this price; but I must admit, I've thought that for some time.
Let me propose a different result. Just speculation, not based on any data.
When a refinery shuts down unexpectedly for an extended duration, the demand for crude oil has not gone down, but the supply chain for the end product has been disrupted.
The gasoline and diesel demand has not diminished, the end crude oil demand has not changed.
But the oil bought on long term contracts for this refinery cannot all be handled. I suspect they are still responsible for their contracts, they have to sell that oil and pay transportation cost to somewhere else. At the same time, other refineries are going to have to pick up the slack, the net most likely by foreign refineries since most of ours run maxed out.
Those foreign refineries often don't produce to our specification and need to either make special runs or blend in addition quantities of products like alkylates. These refineries need to increase their purchase of crude oil on the short term to meet their increased demand. Their supplementary short-term purchases drive up the price of crude oil. Or maybe it washes out. I suspect a disruption in the planned shippments with total demand unchanged will make an increase in price.
“This price is not justifiable. The Dollar’s relative decline isn’t doing it. The supply side fundamentals don’t give cause for it. Speculation. Peoples pockets being drained at the pump isn’t ‘speculative’ of course but there is no other specific reason.”
You are smarter thank the market, hey?
I’m not smarter than the market. The market is driving these prices. Fundamental costs are not. Just pointing out the forces at work. People making money while driving prices up.
So be smart and make money by being long oil.
109.83
up 1.08
110.09
up 0.17 intraday
Hey Right Whale, is it the traders fault? Is it the falling dollar? Is it the 10,000 chinese who buy cars every day? Who knows? Who cares? If you know what the trend is and you are not smart enough to take advantage of it they its your own fault.
A whole lot of Chinese and Indians are going to be using oil and the don’t give a crap if gas cost 4-5 or 10 dollars a gallon. They are going to be buying cars. Just as you and I will be driving to work as gas costs that much. Get used to it.
Buy gold!
LOL
“Buy gold!”
I did a long time ago....silver oil and natural gas too! :)
NYMEX stove oil $3.19 wholesale futures contract
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