Oil Contrarian Sees Bubble Ready To Burst

[USA320Pilot]

Oil Contrarian Sees Bubble Ready to Burst

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Regards,

USA320Pilot

 

[AtlanticBeach]

As a card carrying Contrarian, this requires all the stars to align perfectly. Currently, 43% of oil price increases are due to the the weakness of the US dollar. This figure takes into account that the dollar closed yesterday at its' strongest point in 8 weeks.

The claim that demand is only 2% higher than last year is based on domestic data. It does not reflect international activity or that some federal reserves were released to dampen prices during an election year.

I do agree that the market is being driven by speculation and not by facts. However, there appears to be insufficient financial pressure to cause a rapid decrease in energy prices.

My crystal ball has been a little hazy recently (But if you remember, I did call AIG as the next Enron. And the final chapter on that one has yet to be written.). Look for barrel prices in the mid $40s by the end of the year, barring major change in output or terrorist activity.

 

[BoeingBoy]

"I guess that makes me the lunatic fringe," Evans said, followed up by a burst of laughter.

Here's the "non-lunatic fringe" version:

Crude Oil Falls on Speculation U.S. Inventories Rose Last Week

Any price decline will end later this year as crude oil demand outstrips supply, [Boone] Pickens said in an interview. Demand typically rises late in the year as refiners prepare heating fuels for winter. ``By the time you get to the fourth quarter, it's going to be a very, very tight oil market.''

Jim

 

[repeet]

Oops,

OPEC Running Out of Spare Production Capacity

 

[BoeingBoy]

Apparently, Alan Greenspan made some "glass half full/glass half empty" remarks in a speech today.

For crude prices, he sees market forces leading to moderation as higher prices of refined products lead to consumer conservation measures.

On the other hand, he sees a lack of world refining capacity as "worrisome".

Market May Cool Oil Frenzy-Greenspan

Jim

 

[E-TRONS]

Maybe Chevron will close some more refineries after their merger is completed. They will have to find a way to make up that $16.4 Billion price tag.

 

[jimntx]

Maybe Chevron will close some more refineries after their merger is completed. They will have to find a way to make up that $16.4 Billion price tag.

[post="260760"][/post]​

ChevronTexaco did not buy Unocal for anything other than their oil lease concessions, especially in the Far East. Unocal got out of the refining and marketing business several years ago. They have no refineries to close.

 

[jimntx]

What I can't believe is that it took A320pilot until almost 1100 to post the link. I read the article early this morning and figured it would already be posted here.

 

[E-TRONS]

ChevronTexaco did not buy Unocal for anything other than their oil lease concessions, especially in the Far East. Unocal got out of the refining and marketing business several years ago. They have no refineries to close.

[post="260774"][/post]​

I was being sarcastic.............one of my hobbies

 

[USA320Pilot]

Greenspan looks for rise in inventory to shrink oil prices

WASHINGTON — Expected increases in oil inventories should lead to lower prices, Federal Reserve Chairman Alan Greenspan said Tuesday.

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Regards,

USA320Pilot

 

[jimntx]

It's happening already!!!!! According to Bloomberg.com, at 1220 EDT, oil has plummeted $0.25/bbl to only $55.60/bbl.

Nothing but financial blue skies ahead for all of us.

 

[savyinvestor]

Oil up 74 cents to $56.59 last I checked. Savy

 

[a320av8r]

What did you expect when you elected oilmen as president and vice president . condolezza rice even has an oil tanker that was named after her while serving on the board of Exxon.
Who's looking out for your interests?

Exxon, Enron and Haliburton.

 

[savyinvestor]

I should have thought of that right away. It's the Republicans fault and not a worldwide increase in demand and our lack of ability to refine more oil. Savy

 

[FWAAA]

I should have thought of that right away. It's the Republicans fault and not a worldwide increase in demand and our lack of ability to refine more oil. Savy

[post="261074"][/post]​

Exactly. If we had elected John Kerry, none of this would have happened. It is the fault of our politicians and the fault of those big, evil oil companies.