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Boo Hoo Iran & Venezuela

Paratus

Paratus

Lifer
Link

NEW YORK - Oil prices closed at a new 14-month low beneath $70 a barrel Thursday, bringing its price to less than half its July record high after the government reported massive increases in U.S. crude and gasoline stockpiles.

Investors took the news as more evidence that a global credit crisis and a shaky economy are curbing demand for oil.

At the pump, a gallon of regular gasoline shed another 4 cents overnight to a new national average of $3.084, according to auto club AAA, the Oil Price Information Service and Wright Express. At this rate, the national average could fall below $3 by the weekend.
Story continues below ?advertisement

The selloff in crude came despite an announcement by OPEC on Thursday that it was moving up by almost a month an emergency meeting to discuss oil's rapid drop in value, including whether or not a production cut is needed. The Organization of Petroleum Exporting Countries will now meet Oct. 24 at its headquarters in Vienna, Austria, instead of Nov. 18.

Oil market traders ignored the statement, convinced that prices are headed lower.

Light, sweet crude for November delivery dropped $4.69, or 6.2 percent, to settle at $69.85 a barrel on the New York Mercantile Exchange, the lowest settlement prices since Aug. 23, 2007. Earlier prices dipped to $68.57, a level not seen since June 27, 2007.

Crude has now fallen 52.5 percent since surging to a record $147.27 on July 11. Some energy analysts have predicted oil could fall as low as $50.

Thursday's declines accelerated after the U.S. Energy Information Administration said in its weekly report that crude stocks rose by 5.6 million barrels last week, well above the 3.1 million barrel increase expected by analysts surveyed by energy research firm Platts.

The EIA also says gasoline stock rose by 7 million barrels last week, more than double the build analysts had expected.

Demand for gasoline over the four weeks ended Oct. 10 was 5.2 percent lower than a year earlier, averaging nearly 8.8 million barrels a day, the EIA said.

"This report is playing right into the market's deepest fears, that the economy is slowing down and that demand is going to be nonexistent," said Phil Flynn, energy analyst at Alaron Trading Corp. in Chicago.


Video
Lower gas prices bring high hopes
Oct. 14: Falling gas prices in some states are a silver lining to the economic slump. NBC's Kevin Tibbles reports.

Today show
While U.S. energy supplies have been swelling because of falling demand, they've also grown as U.S. Gulf Coast energy installations continue to increase production after shutdowns caused by Hurricanes Ike and Gustav. That has helped to further drive down prices, especially for gasoline.

But analysts doubt a production cut by OPEC, which investors view as increasingly likely, would do much to suspend oil's free fall. OPEC's decision last month to cut production by 520,000 barrels a day hardly made a dent in oil prices.

"I think the market has already priced in another 500,000 barrel production cut and it doesn't care," Flynn said.

He said OPEC's decision to move up their extraordinary meeting underscores the cartel's anxiety about oil's stunning drop in value. Analysts believe several OPEC members, particularly Venezuela and Iran, budgeted their national spending based on oil at much higher levels, meaning they'll face substantial revenue shortfalls as prices come down.

"They're panicking," Flynn said. "If they come in and cut production and oil falls to $60, they're going to look like they've lost control, which they have."

Also weighing on prices Thursday was the expiration of November oil contract options at the end of the day, a trading cycle that often increases volatility.
Click to expand...


Too bad. Just like any bubble you shouldn't plan on it going up forever
 
Originally posted by: Paratus
Link

NEW YORK - Oil prices closed at a new 14-month low beneath $70 a barrel Thursday, bringing its price to less than half its July record high after the government reported massive increases in U.S. crude and gasoline stockpiles.

Investors took the news as more evidence that a global credit crisis and a shaky economy are curbing demand for oil.

At the pump, a gallon of regular gasoline shed another 4 cents overnight to a new national average of $3.084, according to auto club AAA, the Oil Price Information Service and Wright Express. At this rate, the national average could fall below $3 by the weekend.
Story continues below ?advertisement

The selloff in crude came despite an announcement by OPEC on Thursday that it was moving up by almost a month an emergency meeting to discuss oil's rapid drop in value, including whether or not a production cut is needed. The Organization of Petroleum Exporting Countries will now meet Oct. 24 at its headquarters in Vienna, Austria, instead of Nov. 18.

Oil market traders ignored the statement, convinced that prices are headed lower.

Light, sweet crude for November delivery dropped $4.69, or 6.2 percent, to settle at $69.85 a barrel on the New York Mercantile Exchange, the lowest settlement prices since Aug. 23, 2007. Earlier prices dipped to $68.57, a level not seen since June 27, 2007.

Crude has now fallen 52.5 percent since surging to a record $147.27 on July 11. Some energy analysts have predicted oil could fall as low as $50.

Thursday's declines accelerated after the U.S. Energy Information Administration said in its weekly report that crude stocks rose by 5.6 million barrels last week, well above the 3.1 million barrel increase expected by analysts surveyed by energy research firm Platts.

The EIA also says gasoline stock rose by 7 million barrels last week, more than double the build analysts had expected.

Demand for gasoline over the four weeks ended Oct. 10 was 5.2 percent lower than a year earlier, averaging nearly 8.8 million barrels a day, the EIA said.

"This report is playing right into the market's deepest fears, that the economy is slowing down and that demand is going to be nonexistent," said Phil Flynn, energy analyst at Alaron Trading Corp. in Chicago.


Video
Lower gas prices bring high hopes
Oct. 14: Falling gas prices in some states are a silver lining to the economic slump. NBC's Kevin Tibbles reports.

Today show
While U.S. energy supplies have been swelling because of falling demand, they've also grown as U.S. Gulf Coast energy installations continue to increase production after shutdowns caused by Hurricanes Ike and Gustav. That has helped to further drive down prices, especially for gasoline.

But analysts doubt a production cut by OPEC, which investors view as increasingly likely, would do much to suspend oil's free fall. OPEC's decision last month to cut production by 520,000 barrels a day hardly made a dent in oil prices.

"I think the market has already priced in another 500,000 barrel production cut and it doesn't care," Flynn said.

He said OPEC's decision to move up their extraordinary meeting underscores the cartel's anxiety about oil's stunning drop in value. Analysts believe several OPEC members, particularly Venezuela and Iran, budgeted their national spending based on oil at much higher levels, meaning they'll face substantial revenue shortfalls as prices come down.

"They're panicking," Flynn said. "If they come in and cut production and oil falls to $60, they're going to look like they've lost control, which they have."

Also weighing on prices Thursday was the expiration of November oil contract options at the end of the day, a trading cycle that often increases volatility.
Click to expand...


Too bad. Just like any bubble you shouldn't plan on it going up forever
Click to expand...

The Govts of Iran and Venezuela arent the brightest.

Saudi Arabia was smart with increasing their production.
 
Originally posted by: Corporate Thug
I'm still cautious. Prices went up so fast, I'm not convinced that we can't be easily fucked again within a month or two.
Click to expand...

I think a lot of that has to do with speculators using massive amounts of leveraged money.

Somehow I don't think there is going to be much leverage money floating around until the credit crisis is over.

(Actually that's how you will know when it's over. When the Bubble Boys (TM) start driving some other commodity sky high - probably toilet paper next time)
 
Originally posted by: George P Burdell
Hey retard, does this look like P&N to you?
Click to expand...

Hmm political discussion and personal attacks. Yup! Looks just like P&N

PS George P Burdell for MOD! 😉

PPS I actually meant to put this in P&N 😱
 
Originally posted by: Paratus
Originally posted by: Corporate Thug
I'm still cautious. Prices went up so fast, I'm not convinced that we can't be easily fucked again within a month or two.
Click to expand...

I think a lot of that has to do with speculators using massive amounts of leveraged money.

Somehow I don't think there is going to be much leverage money floating around until the credit crisis is over.

(Actually that's how you will know when it's over. When the Bubble Boys (TM) start driving some other commodity sky high - probably toilet paper next time)
Click to expand...

I guess they'd already done with tulips.
 
Originally posted by: Corporate Thug
I'm still cautious. Prices went up so fast, I'm not convinced that we can't be easily fucked again within a month or two.
Click to expand...

If it becomes colder than an average winter in the northeast, then maybe the extra heating oil demand could pop the price a bit.
Otherwise, AFAIK, it is only downward until next year's warm weather travel season.
 
Congress needs to act now and add a special speculation tax to speculators that make money off LONG oil futures, and reduce the tax rate for speculators that make money off short oil futures.
 
Originally posted by: Paratus
Link

NEW YORK - Oil prices closed at a new 14-month low beneath $70 a barrel Thursday, bringing its price to less than half its July record high after the government reported massive increases in U.S. crude and gasoline stockpiles.

Investors took the news as more evidence that a global credit crisis and a shaky economy are curbing demand for oil.

At the pump, a gallon of regular gasoline shed another 4 cents overnight to a new national average of $3.084, according to auto club AAA, the Oil Price Information Service and Wright Express. At this rate, the national average could fall below $3 by the weekend.
Story continues below ?advertisement

The selloff in crude came despite an announcement by OPEC on Thursday that it was moving up by almost a month an emergency meeting to discuss oil's rapid drop in value, including whether or not a production cut is needed. The Organization of Petroleum Exporting Countries will now meet Oct. 24 at its headquarters in Vienna, Austria, instead of Nov. 18.

Oil market traders ignored the statement, convinced that prices are headed lower.

Light, sweet crude for November delivery dropped $4.69, or 6.2 percent, to settle at $69.85 a barrel on the New York Mercantile Exchange, the lowest settlement prices since Aug. 23, 2007. Earlier prices dipped to $68.57, a level not seen since June 27, 2007.

Crude has now fallen 52.5 percent since surging to a record $147.27 on July 11. Some energy analysts have predicted oil could fall as low as $50.

Thursday's declines accelerated after the U.S. Energy Information Administration said in its weekly report that crude stocks rose by 5.6 million barrels last week, well above the 3.1 million barrel increase expected by analysts surveyed by energy research firm Platts.

The EIA also says gasoline stock rose by 7 million barrels last week, more than double the build analysts had expected.

Demand for gasoline over the four weeks ended Oct. 10 was 5.2 percent lower than a year earlier, averaging nearly 8.8 million barrels a day, the EIA said.

"This report is playing right into the market's deepest fears, that the economy is slowing down and that demand is going to be nonexistent," said Phil Flynn, energy analyst at Alaron Trading Corp. in Chicago.


Video
Lower gas prices bring high hopes
Oct. 14: Falling gas prices in some states are a silver lining to the economic slump. NBC's Kevin Tibbles reports.

Today show
While U.S. energy supplies have been swelling because of falling demand, they've also grown as U.S. Gulf Coast energy installations continue to increase production after shutdowns caused by Hurricanes Ike and Gustav. That has helped to further drive down prices, especially for gasoline.

But analysts doubt a production cut by OPEC, which investors view as increasingly likely, would do much to suspend oil's free fall. OPEC's decision last month to cut production by 520,000 barrels a day hardly made a dent in oil prices.

"I think the market has already priced in another 500,000 barrel production cut and it doesn't care," Flynn said.

He said OPEC's decision to move up their extraordinary meeting underscores the cartel's anxiety about oil's stunning drop in value. Analysts believe several OPEC members, particularly Venezuela and Iran, budgeted their national spending based on oil at much higher levels, meaning they'll face substantial revenue shortfalls as prices come down.

"They're panicking," Flynn said. "If they come in and cut production and oil falls to $60, they're going to look like they've lost control, which they have."

Also weighing on prices Thursday was the expiration of November oil contract options at the end of the day, a trading cycle that often increases volatility.
Click to expand...


Too bad. Just like any bubble you shouldn't plan on it going up forever
Click to expand...

No, no! It's Peak Oil, I tell you! We'll never see oil below $100.00 a barrel again, just like housing prices will never drop!
 
Now, if only gas would fall to $.10 a gallon again...

So whats causing this pretty big slump anyways? It gradually climbed to $150 a gallon and now is steadily heading south. Have people started to use less oil (drive less, use less power, ect) which cause a large surplus? or was there just some guy that pushed a button that made everything go down.
 
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