Oil price over $147 for the first time-now above $80

[Derek Ortt]

that may be classic profit taking after friday. Was to be expected

[george_r_1961]

that may be classic profit taking after friday. Was to be expected

So that likely means prices will soar for the remainder of the week.

[george_r_1961]

And the Saudis want to have a meeting over the high prices.


http://money.cnn.com/2008/06/09/news/international/saudi_oil.ap/index.htm?cnn=yes

I feel so much better now!

[wbug1]

So do I.

[Dionne]

The president of OPEC, Chahib Klieul is blaming the current economic crisis in the U.S. along with a weakening dollar causing upwards of $40 American in crude oil speculation. Bloomberg reported earlier today that Chabib suggested a real market value of $70 per barrel was more appropriate. This info came from the Bloomberg website. A lot of red in the commodities markets today.

[wbug1]

Source: Energy Information Administration, United States of America, US crude oil field production, 1920-2008

http://tonto.eia.doe.gov/dnav/pet/hist/mcrfpus1m.htm

Mexican oil production

http://tonto.eia.doe.gov/dnav/pet/hist/ ... 3fm_1a.htm

Might be an interesting read:

http://www.eia.doe.gov/neic/speeches/Caruso061305.pdf

[Stephanie]

The president of OPEC, Chahib Klieul is blaming the current economic crisis in the U.S. along with a weakening dollar causing upwards of $40 American in crude oil speculation. Bloomberg reported earlier today that Chabib suggested a real market value of $70 per barrel was more appropriate. This info came from the Bloomberg website. A lot of red in the commodities markets today.

I'm sure that it's a good part of the problem. However, if the supply production hasn't kept up with the demand, especially from India and China, that will cause the speculation to increase the price further.

[Cryomaniac]

Well, exactly. There is obviously a reason for the insane speculation.

[cycloneye]

Saudi Arabia boosts Oil Production by 500,000 Barrels



Will this action by Saudi Arabia turn down oil prices or it will not matter to the oil traders?

[Cryomaniac]

Saudi Arabia boosts Oil Production by 500,000 Barrels



Will this action by Saudi Arabia turn down oil prices or it will not matter to the oil traders?

Hopefully it will help. Not a lot, but maybe it will help.

[cycloneye]

Oil falls another $3



Thanks to the lifting of the dollar and Saudi Arabias 500,000 barrel output,oil prices today extended the falling trend of yesterday.

[gtalum]

I think the speculators are spooked for the moment. Bernanke's talk of a strong-dollar policy is probably helping too, with the accompanying rumors of an imminent rate hike.

[HURAKAN]

I pumped gas for $3.97 last Friday, today it's $4.07.

[MGC]

We really need a stronger dollar. My sister is over in Ireland right now and she says she can't afford a thing due to the weak dollar. Get a strong dollar and oil will fall.....MGC

[gtalum]

MGC on that we can agree. Hopefully Bernanke is listening and will start jacking up rates (now that I'm locked in on my new home loan ).

[george_r_1961]

Saudi Arabia boosts Oil Production by 500,000 Barrels



Will this action by Saudi Arabia turn down oil prices or it will not matter to the oil traders?

Hopefully it will help. Not a lot, but maybe it will help.

I think this is more crooked speculating/price gouging than it is anything else. They could boost oil production by 1 million barrels and I dont think it will matter. And ive mentioned this before: Remember the $135 oil a couple of weeks ago? Well the gas refined from that hasnt hit the pumps yet and may not till mid July. And that little rally oil had on Friday guarantees that gas will keep going up and will probably be $5 a gallon at least by August. Dont get your hopes up just because oil dropped by a few dollars. And the first thunderstorm that forms over the GOM will make the speculators go nuts.

[Stephanie]

We really need a stronger dollar. My sister is over in Ireland right now and she says she can't afford a thing due to the weak dollar. Get a strong dollar and oil will fall.....MGC

EXACTLY!

I wanted to spit fire the last time interest rates were lowered. I was like "are they listening to their own reports?".

Perhaps, a compromise was reached - increased output and a more aggressive approach to get the dollar stronger again. I'm sure that there was a lot of behind the doors negotiations.

[wbug1]

The interest rates were lowered because there is a credit crisis, and some banks failed. That takes precedence over the dollar, and with the M3 supply going up as it and the US trade deficit being as it is, there's nothing the CB can do to stop a declining US dollar. It seems to have leveled off now anyway. These might be some of the lesser problems we're all going to have to contend with.

[gtalum]

The interest rates were lowered because there is a credit crisis, and some banks failed. That takes precedence over the dollar...

It doesn't have to take precedence over the dollar, that's just what the Fed chose to do to handle the situation. IMHO it's debateable that it was worth collapsing the value of the dollar to save a few greedy and unwise financial institutions.

[HURAKAN]

Today in the newspaper their is an article about Cubans living in the US moving back to Cuba. That's something I would never do because if things are bad in the most powerful country in the world, can you imagine how conditions are in a third world country? Things in paradise can get really bad but they won't even be as bad as in hell!!!