OPEC to cut 1MM Barrels per day - goodby falling gas prices...

[Howie Feltersnatch]

Forking fork!
http://www.washingtonpost.com/wp-dyn/content/article/2006/10/11/AR2006101100341.html

[RitcheyRch]

Most likely gas prices will go back up. Figures, just as was getting used to paying under $3 a gallon. :mad:

[schiada96]

2.12 here in the great state of North Carolina
gonna go up again

[Mandelon]

They are such good friends of the USA :rolleyes:
They, (OPEC, including Russia and Venezuela) could really fokk with the Republicans by causing some "problems" and raising oil prices/cut exports. Gas and heating oil prices rise = unhappy voters.......they could cause a "Regime change" over here..... :idea: :yuk:

[Jyruiz]

I say we cut aid to Russia, Venezuela and all the Opec countries. We can say that it is costing us to much in fuel to keep sending them aid.

[cjordan]

Won't matter much short term....they are cutting because there is huge supply on the market. Crude should probably be trading closer to $40.00.

[JB in so cal]

At 12:11 Pacific time, oil is down .94 to $57.60. :cool:

[Infomaniac]

$2.02 here in Okie Land. I knew they would not let it go under $2.00

[Essex502]

The high oil prices aren't about supply and demand nor about OPEC - check the Senate report on the manipulation via commodity speculation and then decide.

[bigq]

The high oil prices aren't about supply and demand nor about OPEC - check the Senate report on the manipulation via commodity speculation and then decide.
You're a smart man. :cool:

[ROZ]

The high oil prices aren't about supply and demand nor about OPEC - check the Senate report on the manipulation via commodity speculation and then decide.
:crossx:
"Oil inventories recently reached 347 million barrels – an eight-year high and the largest U.S. inventory since 1998, when oil was $15 per barrel. Similarly, oil inventories in Organisation for Economic Co-operation and Development (OECD) countries recently reached a 20-year high. As the report explains, the traditional factors of “supply and demand” do not tell the whole story on oil and gas prices.
What is new, according to the Levin-Coleman report, is that over the past few years market speculators have poured tens of billions of dollars into the energy commodity markets. For example, the International Monetary Fund reports that over the past three years approximately $100-$120 billion has been invested in energy markets worldwide. Over this same period about $60 billion has been invested in oil futures on the NYMEX.
Many analysts believe these speculative investments have significantly raised the price of oil futures. While it is not possible to determine the precise dollar increase in the price of oil attributable to market speculation, some analysts have estimated that speculation has added as much as $20-$25 to the price of each barrel of oil, thereby pushing up oil from about $50 to around $70 per barrel. As former Federal Reserve Chairman Alan Greenspan recently stated, “with the demand from the investment community, oil prices have moved up sooner than they would have otherwise.” "

[Jyruiz]

:crossx:
"Oil inventories recently reached 347 million barrels – an eight-year high and the largest U.S. inventory since 1998, when oil was $15 per barrel. Similarly, oil inventories in Organisation for Economic Co-operation and Development (OECD) countries recently reached a 20-year high. As the report explains, the traditional factors of “supply and demand” do not tell the whole story on oil and gas prices.
What is new, according to the Levin-Coleman report, is that over the past few years market speculators have poured tens of billions of dollars into the energy commodity markets. For example, the International Monetary Fund reports that over the past three years approximately $100-$120 billion has been invested in energy markets worldwide. Over this same period about $60 billion has been invested in oil futures on the NYMEX.
Many analysts believe these speculative investments have significantly raised the price of oil futures. While it is not possible to determine the precise dollar increase in the price of oil attributable to market speculation, some analysts have estimated that speculation has added as much as $20-$25 to the price of each barrel of oil, thereby pushing up oil from about $50 to around $70 per barrel. As former Federal Reserve Chairman Alan Greenspan recently stated, “with the demand from the investment community, oil prices have moved up sooner than they would have otherwise.” "
Not only can this man clean/build you a pool, but he can educate you on the oil market. Nice job Roz.

[Dave C]

if that were true... They are taking a big chance the price won't crash.
they are bidding up the price on a derivatives market using artificial demand without underlying "asset" market fundamentals being the same. Expect a big correction downward, if this is a case.
basically if they price were to head downward in a futures contract the price could drop in a hurry. Those left holding the bag (speculators) could be hurting. :crossx:
Do I believe it? Maybe. But considering the source (Carl Levin) probably not. But the only way to tell is if the price starts to crash then we will know for sure.
The scenario they outlined cannot continue indefinitely

[wsuwrhr]

Intersting how this parallels the housing market.
Brian
if that were true... They are taking a big chance the price won't crash.
they are bidding up the price on a derivatives market using artificial demand without underlying "asset" market fundamentals being the same. Expect a big correction downward, if this is a case.
basically if they price were to head downward in a futures contract the price could drop in a hurry. Those left holding the bag (speculators) could be hurting. :crossx:

[Dave C]

Sort of... house are less risky. :rollside: futures are an investment vehicle and not an investment in the asset itself.
but thats the nature of speculation. Find above average investment, pump money in, hope for best, hopefully get out before you get burned.! ;) (if it were only that easy :rollside: )
If you had a couple million burning a hole in your pocket you don't invest in the regular stock market like the rest of "little people" They have investment products for those "rich and aggresive" investors looking for above average returns.
The speculators will look for a good market (doesn't matter where) and they will go after it. They don't stick around too long. They get their return and bail out.
There was an interesting article recently in Newsweek about hedge fund traders that had their hand in the cookie jar too long and got burned. :crossx:
Intersting how this parallels the housing market.
Brian

[phebus]

I saw regular unleaded for $2.09 here in Havasu yesterday. Of course I started wondering if it would get below the $2.00 mark.
I guess not....... :mad: