Another Record ($143.67)

DantesPeak · **Posted:** Wed Mar 26, 2008 2:41 pm

Again I would like to point out that the bottleneck in the worldwide crude oil to oil product consumer delivery system, that production of diesel (or lack thereof) is what’s driving oil prices higher.

Diesel inventories worldwide are still running down, as seen in today’s US inventory report, and apparently some oil traders are starting to figure out that just looking US demand figures for diesel doesn’t give the whole picture of what’s happening throughout the world.

Also the falling value of the dollar has in no small part contributed to the rise in the price of oil in terms of US dollars.

lowem · **Posted:** Mon Apr 07, 2008 3:32 am

Welcome back to $107 oil. The brief dip below $100 had me worried for a while :lol:

lowem · **Posted:** Mon Apr 07, 2008 9:17 am

Welcome back to $108, no wait $109, no scratch that, back to $108 oil. Pretty jumpy today.

Zardoz · **Posted:** Mon Apr 07, 2008 10:33 am

Tapis at $113, Louisiana Sweet at $111:

Upstream Online crude oil spot prices

Zardoz · **Posted:** Mon Apr 07, 2008 5:59 pm

Here's a real shocker:

IEA Chief Energy Economist Birol Says Oil Prices to Stay High

Quote:

World oil prices are likely to remain high "for many years to come'' as demand increases and national oil companies lack an incentive to increase production, the chief economist of the International Energy Agency said.

"The current drivers of demand are different'' while higher oil prices no longer represent "an incentive'' to produce more oil, Fatih Birol said at a seminar in Brussels today. Resource-rich nations and their national oil companies get enough revenue and see no need to increase production to ease prices, he added.

What a surprising turn of events. And here we were, all thinking the bottom was going to drop out of the oil market any time now. I'm stunned.

Heineken · **Posted:** Mon Apr 07, 2008 7:32 pm

Yeah, the establishment is gradually, quietly abandoning its absurd predictions of a return to $35 oil. The interesting part about the Birol statement is the reference to "many years to come." That departs rather radically from the usual conservatism. At the same time, it begs the question, "What happens after 'many years to come' that magically brings the price back down?"

The answer, of course, is that the price will never ever come back down.

It's all like a weather forecast that goes ludicrously wrong. After the fact, the forecaster usually never refers to it again.

whereagles · **Posted:** Tue Apr 08, 2008 3:46 am

I guess for an economist $35 oil isn't so far-fetched, on the logics that, all things being equal, "what goes up, must come down".

Point is.. things are NOT equal anymore.

sameu · **Posted:** Tue Apr 08, 2008 9:27 am

when they nuke china $35 would be possible

Smudger · **Posted:** Tue Apr 08, 2008 10:25 am

therealtruth wrote:

I wasn't predicting the day to day moves of the market! I'm saying that in the immediate short-term, oil prices are coming down. As you can see, the funds are liquidating. I said this 2 days ago!! I'm telling everyone to stay out of crude oil because the fundamentals in reality isn't strong enought to justify $100 crude, maybe $80 but definitely not $100. Even when you factor in the devaluation of the dollar and the potential risks still out there that might not have been factored into the price, anything above $80 is excessive!

therealtruth - you have certainly called the immediate short-term to the penny. WTI c. $108 - could you explain why it is doing exactly the opposite of what you said please. Many thanks best regards Smudger

lowem · **Posted:** Tue Apr 08, 2008 11:18 am

Shrug. $108 oil is cheap. Go long!

lowem · **Posted:** Wed Apr 09, 2008 9:30 am

Welcome back to $111 oil.

Welcome back to record-breaking territory.

Armageddon · **Posted:** Wed Apr 09, 2008 9:34 am

lowem wrote:

Welcome back to $111 oil.

Welcome back to record-breaking territory.

Why the spike today ? I haven't had a chance to look into it yet.

frankthetank · **Posted:** Wed Apr 09, 2008 9:38 am

Bad energy report?

DomusAlbion · **Posted:** Wed Apr 09, 2008 9:40 am

US inventories are down over 3 million when they were expected to be up by 2 million.

joeltrout · **Joined:** Wed Sep 19, 2007 12:00 am **Posts:** 1305

OIl inventories 5million less than expected. Saudi March output 100,000 less than Feb

joeltrout

Another Record ($143.67)

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