Posted on 09/29/2008 5:34:37 PM PDT by Tolerance Sucks Rocks
Oil prices tumbled more than $6 a barrel Monday, briefly slipping below the $100 level as traders bet that global demand for petroleum products will keep falling despite a planned $700 billion U.S. financial bailout.
A stronger dollar also weighed on crude prices as investors who bought oil and other commodities as a hedge against inflation sold their contracts.
Light, sweet crude for November delivery fell as low as $99.80 a barrel in morning trading on the New York Mercantile Exchange before edging up slightly to $100.28, down $6.61.
The contract fell Friday $1.13 to settle at $106.89. Crude has now fallen 31 percent since surging to an all-time record of $147.27 on July 11.
Monday's sell-off was tied to anxiety over the pending U.S. rescue plan. Following a week of intense negotiations, lawmakers could hold a final vote on the emergency measure Wednesday. But investors are doubtful whether the plan will be enough to unfreeze global credit markets and restore calm to the financial system.
(Excerpt) Read more at onenewsnow.com ...
Well, there’s one advantage to deflation. Cash will be king.
I am looking forward to deflation.
Oil should be below $50 per bbl on the commodity market.
And thus will die one of the few issues Republicans are leading on - drilling for more oil.
And not a bad sign, either.
Energy independence is still very popular with voters.
The hedge funds which have wrapped themselves around these bs mortgages and oil at over $100/barrel will start cratering inward this week.
Then the pace will pick up.
We should not bail out a single hedge fund.
Is that because of decreasing inventories? ["no"}
Because conventional oil is not being produced at ever higher rates even given much higher prices since 2005? ["no"]
Is that because tar sands probably aren't economically viable at $50 per barrel? ["no"]
Is that because the only places new large fields are being discovered is in remote technically challenging deep water? ["no"]
Sorry Lilly, but if we get $50 oil it will be because the entire world is in a very nasty depression. Be careful what you wish for.
Yep - I’m sure it’s purely coincidental but oil seems to be stabilizing at precisely the threshold over which shale oil extraction is economically viable. Probably just a silly happenstance...
In a severe deflation only folding money [The First State Bank of Serta?] and maybe Treasuries would be a sure thing.
Even then, remember that Helicopter Ben is prepared to wreck the value of whatever cash you might have before you get a chance to enjoy it.
More evidence that this is a faux crisis.
Hell no. You have to be wealthy and have a store of discretionary capital even to join one. By definition a hedge fund investor does not need bailing out. The very idea should be anathema.
What this means is that things will be worse overseas. No matter how low the economy goes, most parts of America will be able to grow their own food. Not so in China and India. With the American economy gone, who will there be to make tech support calls and buy Chinese goods?
Right. And I’m thinking Europe is in an even more precarious position than most people may realize.
“Hell no. You have to be wealthy and have a store of discretionary capital even to join one. By definition a hedge fund investor does not need bailing out. The very idea should be anathema.”
Out here most of the owners of hedge funds are very wealthy and very far left.
So they can just bend over and take it. Their rat friends in congress set up a lot of sweetheart deals for them. Now it is time for them take the losses with their gains, gains, that the rest of us couldn’t participate in.
“Oil should be below $50 per bbl on the commodity market.”
If John and Sarah are elected, and their drill now campaign starts to take hold, oil will probably drop below $50/barrel.
The only way the Opecker thugs and Princes can slow down our drilling is to really make their oil very available and basically below what it would cost us per barrel to drill and transport it.
Just as Trump said on FOX this AM. Let us loose, and we'll unleash the "dogs of $50.00 a barrel". Haven't been able to respond too much do to a consulting job with a major, but the ONLY downside I see to not making some sort of deal, is the drying up of capital. My business is so $ intensive, that a lack of capital will kill a lot of independents.
Having said that, killing a fat laden pig, even one with lipstick, is always a good thing. Shove any deal that isn't right, right down Pelosi's surgically enhanced throat.
How do you make that claim when Alberta Oil Sands have been in continuous commercial production since 1967?
http://www.suncor.com/default.aspx?ID=9
Of course they won't see the massive growth investment of $170 billion like they do today. But at $50 oil, Oil Sand production will not be shutting down.
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