Oil

[ERR]

Thoughts on where it will go from here? How does the price of oil generally correlate with the market in general? I've heard different ideas about how oil will affect the market, but I don't know much about it myself.

[tommy_guns]

Oil is on its way towards 100, when its above 100 I do not think it will be a good thing for the economy

[ERR]

Oil is on its way towards 100, when its above 100 I do not think it will be a good thing for the economy

I agree, but I've heard a lot of opinions to the contrary.

[Gspot555]

I think it will hit 100 fairly soon...

[tonei.]

Long term oil should spike because of the supply problems, but just like anything else once to many people believe in something, it doesn't happen.

Oil has been trading more or less with the market/dollar the past couple of months, so if the market breaths here, oil "should" do the same. But we could see people rushing into it spiking it.

Long term prices have to go up.

[Capt'nAmerica]

Rick Santelli called 4 dollar gas and 150 oil by summer. Jury is still out in my mind if this would sink the market. If thye sentiment believes oil is running be cuase the world economies are expanding then it could limit the panic.

[TheHipHopBillGates]

Rick Santelli called 4 dollar gas and 150 oil by summer. Jury is still out in my mind if this would sink the market. If thye sentiment believes oil is running be cuase the world economies are expanding then it could limit the panic.

I want to say I agree because supposedly we are past peak oil, and the way the Fed has been printing money & the US is running up debt without raising taxes that commodities have to choice but to take off, the problem/thing that keeps inflation/asset inflation in check is high unemployment, which limits consumption, and frankly who is going to pay for it? Everyone will just stay home as much as possible. And if asset inflation is kept artifically low over the short term by a dip in demand, chances are if there is a recovery and increased demand you'll see hyper-inflation. The only other choice would be for the Fed to start buying back bonds, increasing rates, the government to stop spending and raise taxes, and then the economy =..........

[tonei.]

I think oil will be capped for now, because if oil start's taking the market down as apposed to trading with the market like it is, guess what, someone is going to step in and make sure production is increased.


I think this the way this plays out long term, keep production as high as possible for as long as possible until we figure out a chemical replacement for petroleum, then find a way to shift the ballance, but 300 oil will cripple the world way before any markets/inflation would.

[tommy_guns]

Rick Santelli called 4 dollar gas and 150 oil by summer. Jury is still out in my mind if this would sink the market. If thye sentiment believes oil is running be cuase the world economies are expanding then it could limit the panic.

Rick Santelli has been dead on with everythign he has said recently.

[tonei.]

Long term oil should spike because of the supply problems, but just like anything else once to many people believe in something, it doesn't happen.

Oil has been trading more or less with the market/dollar the past couple of months, so if the market breaths here, oil "should" do the same. But we could see people rushing into it spiking it.

Long term prices have to go up.

Oil down with the Market... This is when i should put shorts on, because no one is expecting this market to correct here, but ive been burned twice with this market. This fucking thing just wants to burn bears..

[TheHipHopBillGates]

Oil down with the Market... This is when i should put shorts on, because no one is expecting this market to correct here, but ive been burned twice with this market. This fucking thing just wants to burn bears..

well right now recovery still looks like a possibility, if high unemployment lingers it'll correct, the market is 2/3 consumers no if's ands or buts.

[tonei.]

well right now recovery still looks like a possibility, if high unemployment lingers it'll correct, the market is 2/3 consumers no if's ands or buts.

The way i see it, these company's are dealing with less competitors, LOTS of company who where on the brink went under, freeing up there market share, so even if the pie is smaller, these company's are eating up huge parts of the pie and driving up earnings and driving up markets.

Not to mention ALL of these small business that still give up even more market share.

I think the only thing making this thing correct heavily is earnings. If that comes with less spending/unemployment then so be it, if that comes with less market share from freeing up credit, who knows.. But until something changes we might only have shallow pullbacks.

[crazyray™]

been holding the oil service holders index since oil was 38/barrel. don't plan on getting rid of it for years... until oil is @ 200

[tonei.]

Oil down six days in a row, if the market rolls this is going down more, but this might roll another 5/10 and then bounce if the market isn't correcting.

Supply and inventories remain high.

[tonei.]

Just like this market, pumping liquidity, they are going to make sure production is high, not stalling this recovery.



http://www.reuters.com/article/idUSTRE63E2YR20100415

OPEC would mull oil output boost at $100: Kuwait

(Reuters) - OPEC would make a decision on whether to boost output to calm oil prices if the market passed $100 a barrel, Kuwait's oil minister said on Thursday.

U.S. crude traded around $85 a barrel on Thursday, a little above the $70 to $80 range that OPEC's largest producer Saudi Arabia has said was fair for both consumers and producers.

"Above $100... we would take a decision in this regard," Sheikh Ahmad al-Abdullah al-Sabah told reporters at Kuwait's parliament, when asked how high the producer group would allow prices to rise before acting.

Oil is within sight of an 18 month high of just over $87 a barrel reached earlier this month. Yet there has been little sign from OPEC that it might increase output to cool prices.

OPEC delegates said earlier this week an oil price above $90-$95 would prompt the group to consider raising output.

Oil prices so far have stayed below levels that would damage the global economic recovery, Sheikh Ahmad said.

The world's fourth-largest exporter was happy with the current price level, he added.

The price recovery from a low near $32 in December 2008 has boosted revenues for Gulf countries, allowing them to keep fiscal stimulus packages in place at a time many countries are considering spending cuts and facing mounting debt.

Higher-than-expected oil revenues boosted Kuwait's budget surplus in the first 11 months of the 2009-2010 fiscal year to 8.33 billion Kuwaiti dinars ($29 billion). Kuwait's fiscal year begins in April.

(Writing by Simon Webb; editing by James Jukwey)

[tonei.]

took my shorts off oil this morning, haven't gone long but to much uncertainty right now,markets gonna get choppy next week..

[tonei.]

http://www.marketwatch.com/story/oil...bex-2010-05-05

Oil futures drop 4% to under $80/bbl on Globex


FRANKFURT (MarketWatch) -- Oil futures accelerated their losses on Wednesday, dropping 4% to below $80 a barrel, as falling U.S. stock futures and the surging dollar prompted traders to sell crude. Crude oil for June delivery fell $3.24 to $79.50 a barrel in electronic trading on Globex. The contract hit an intraday low of $79.08 a barrel.

[TheHipHopBillGates]

http://www.marketwatch.com/story/oil...bex-2010-05-05

Oil futures drop 4% to under $80/bbl on Globex


FRANKFURT (MarketWatch) -- Oil futures accelerated their losses on Wednesday, dropping 4% to below $80 a barrel, as falling U.S. stock futures and the surging dollar prompted traders to sell crude. Crude oil for June delivery fell $3.24 to $79.50 a barrel in electronic trading on Globex. The contract hit an intraday low of $79.08 a barrel.

I was reading somewhere on CNN Money last night while I was in class can't seem the article now, but it was saying that US Inventory is high and they don't expect the pumps to hit over $3.00 a gallon this summer sans a new Middle East event, they even think it could start dropping from it's current average of $2.90 a gallon around July-August.

[tonei.]

I was reading somewhere on CNN Money last night while I was in class can't seem the article now, but it was saying that US Inventory is high and they don't expect the pumps to hit over $3.00 a gallon this summer sans a new Middle East event, they even think it could start dropping from it's current average of $2.90 a gallon around July-August.

There keeping production very high and prices at 80/90, they would rather have 80 then 40 oil from stalling the demand at 120 so its a happy median, mid east gets decent money for there oil, us keeps production hight to not stall the recovery...


I think prices stay in this range for a year.. Without future off shore who knows how this plays out 2 years out.


Sans any Geopolitic risks..

[James Maxx]

Staying away from any oil related stocks.

There will be less demand over the years and in my mind they are extortionist, bottom feeding scum that support terrorist countries and destroy the planet. I try my best not to invest in any way in these companies.