Posted on 08/18/2008 9:56:58 AM PDT by Renfield
Jack Risko of Dinocrat.com charts oil and gas prices, showing a pattern that looks very much like a speculative bubble.
Notice in particular the freefall of natural gas prices (the red line), suggesting that oil prices may fall even further. Jack speculates that one motive for the Soviet invasion of Georgia is to threaten the major pipeline supplying Europe, thereby helping to sustain oil prices.
A major fall of oil prices to pre-run-up levels would severely cut the income of Russia, not mention the oil states of the Gulf and Hugo Chavez.
Who are we going to have bail out when this one bursts?
Well we don’t want to pop the bubble too soon. It would be nice to get some more production at home first so we can help avoid future bubbles.
If natural gas is in freefall, how come my cost is going up from $9.4/MCF to $15.5/MCF this year?!
I’ll be able to manage this, but this will seriously hurt many families in the north that use natural gas heating. If it’s a cold October, it will hurt McCain, (gas bills before the election). A cold November/December will mean a very lean Christmas for the retailers.
I cut my consumption by 75% (without any decreased travel) in 2005 when gas went over $2. Good to see the price direction finallly responding.
Makes you wonder how many of those speculators had Russian sounding names.
Maybe SAJ and thackney have some input here as well...
Higher taxes are the cure for the present crisis, according to....
The same people you bailed out when the last two oil 'booms' went 'bust'.
No one.
Oil is at 113.45 right now, down 32 cents.
What’s so wild about all of this is that the Russian incursion hasn’t done anything to the oil market, apparently. A couple of months ago, it would have sent oil up $10 a barrel in one day. Strange thing, the market..
I’m glad to see that everyone is keeping their tires inflated
;)
It’s all because millions of Americans suddenly learned to keep tires properly inflated..... /s
Once the Obama federal Mandatory roadside tire inflation inspection stations (manned by 75,000 newly deputized gov't employees goes into effect, the price of a barrel of oil should drop to about $10.00. Additionally, the fines imposed (only on the wealthy) for under inflated tires should balance the budget. <
In Obamanomics its a win - win situation!
The price of oil has been depressed because of a dollar rally that began on August the 4th - and was started by the Russians.
I paraphrase FReeper jsh3180 on this subject:
“On that date huge sums of money was moved into short term US Treasury Bonds. The money for the bond purchases - about $50 Billion - was funneled through Swiss and Eastern European institutions.”
“This money would appear to have come from persons that knew in advance of the Russian invasion of Georgia. As the tanks rolled in, the Ruble and the Russian stock markets crashed.”
“All the Russian money pouring into the US$ set off a buying/short covering panic. Institutional/hedge fund black box trading algorithms are programmed to do the following when the dollar moves up: sell Oil, sell Gold and Commodities, Buy US equities.”
“The mass movement of Russian money into the $, combined with program trading is THE reason that gold and oil sold off on the news of the Russian invasion, a geopolitical event that normally would have had the opposite effect on oil and gold.”
So it would appear that the Georgian war has allowed rich Russians to get richer at the expense of their countrymen.
Also - if the Russian cognoscenti were buying bonds and divesting the ruble on August the 4th, then it’s pretty clear that they knew war was going to break out on the 8th. No more of this “The Georgians started it” nonsense
I wonder if they are messing with Soro’s..or working with him.
I still think the Russians are giving Republicans the biggest gift of all via slowing the rate of the freefall of oil prices and lending credibility to the notion that we need to drill for our own oil.
The price you are paying now is due to that particular gas already being contracted for at a certain price months ago. There is always a lag between price changes in energy and the reflection of same in your energy bills. Energy providers speculate to take volatility down. If they did not do this, prices would flucuate faster, leading to worse problems.
but very much on season for Electrical Power generation and Natural Gas storage.
I believe that provides some balance to the season
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