Oil Contrarian Sees Bubble Ready To Burst

[LGA Fleet Service]

The fact that we haven't actually added any new refinery capacity in this country in years may have something to do with it too...

 

[savyinvestor]

Exactly! Plus one just blew up! Savy

 

[RowUnderDCA]

Actually, I think you could make an argument for 'It's Reagan's fault.'

 

[E-TRONS]

Everyone seems to miss one of the hidden culprits here. Outsourcing. And Yes, W is pro outsourcing.

This country sends so much work overseas (that once contributed to Soc Sec <_< ) to China that they are experiencing a modern day industrial revolution. This cheap manufacturing base comes at a price. That being an increased demand for oil to run all those new industries.........Oil that would normally be destined for the U.S. That is no longer the case here folks. Keep shopping at Walmart :down: .

Then there is the issue of oil companies merging and shutting down "inefficient" refineries reducing our capacity to produce fuel. They didn't bother to build any new ones either. Then supply vs. demand takes over perhaps, as planned.

You have to admit that W's oilman status and Cheney's Haliburton ties make for a tough arguement that there isn't any correlation to fuel prices and their private interests. And still no mandates to increase the fuel efficiency of new autos being produced as you read this.

Fuel prices are climbing as are the oil company profits. So what exactly are they doing with all these billions in profits? Reinvesting into the refineries??? Please....don't insult us like that. This administration is as crooked as a dog's back leg........and fuel prices are the LEAST of W's concerns.

Think about it before you retort!!

 

[autofixer]

Profits are paid out in dividends to the shareholders who own the company...that is where the profits go; as they should.

As with everything these days, a non-political issue is being politicized. We do not live in a centralized planned economy. It is a basic economic drive that is fueling the rise in oil. Perhaps, so that we could save a quarter a gallon on our drive to the mall, those poor downtrodden Chinese and Indians should have stayed on the rice farms and rode home on their beasts of burden, instead of becomming industrialized and mechanized. Remember, nations who trade with one and other, do not fight one and other.

 

[Busdrvr]

Profits are paid out in dividends to the shareholders who own the company...that is where the profits go; as they should.

As with everything these days, a non-political issue is being politicized. We do not live in a centralized planned economy. It is a basic economic drive that is fueling the rise in oil. Perhaps, so that we could save a quarter a gallon on our drive to the mall, those poor downtrodden Chinese and Indians should have stayed on the rice farms and rode home on their beasts of burden, instead of becomming industrialized and mechanized. Remember, nations who trade with one and other, do not fight one and other.

[post="261132"][/post]​

Well Said!

 

[USA320Pilot]

NYMEX Crude Oil Futures contracts for front month delivery traded down over $1.00 per barrel today and with a final settlement of about $51.86 per barrel. At 4:08 p.m. in after hours electronic trading the contract was trading down another 31 cents to $51.55 per barrel.

It seems as if traders are unloading their long positions, which was technically predicted (technical analysis) ahead of tomorrow's important inventory numbers.

Regards,

USA320Pilot

 

[BoeingBoy]

Are you so sure it wasn't this that did it...

"Crude oil fell almost $2 a barrel in New York, the sixth decline in seven sessions, after the International Energy Agency lowered its forecast for world fuel demand."

Crude Oil Futures Fall After IEA Reduces Forecast for Fuel Demand Growth

The highlights of the IEA report....

Highlights of the latest OMR

Jim

 

[WestCoastGuy]

And the Shell station down the street just raised it's prices another 3cents...to 2.59. The oil companies are making the dough now....screwing everyone else.. :down:

 

[markkus757]

ETRONs- let's make two things clear. You are correct in your assumptions that Bush probably is in no hurry to make the world more fuel efficient. BILL CLINTON allowed China to achieve WTO status. That has allowed them to steal a majority of jobs from the blue collar ranks of this country. In regards to fuel economy standards, no president has been able to get an increase passed for vehicles across the board(including SUVs) for over two decades. One thing you might want to know is that the "outsourcing of jobs" has been going on since the 1980's. IBM used to employ over 200,000 people in this country. They don'y even scratch that number today. That is just one of many companies that have been in this business for a while. One other thing to consider; everyone thought that the robotic assembly-line would mean the end to GM, Ford, and Chrysler. today, I believe they employ more people than they did before robootic technology was applied to making cars. Maybe looking at the big picture might do you some good as well before you post.

PS- if you're a politician, you're crooked, no matter what party you represent.

 

[USA320Pilot]

BoeingBoy:

As I have repeatedly said Crude Oil prices were overbought due to inaccurate fundamental analysis, technical indicators indicating an overbought condition, and speculators like Goldman Sachs driving up prices. The point is the security had to come down or the major "players" could not transition their paper profits into cash.

Over time I believe commodity prices will climb, but as Alan Greenspan indicated Crude Oil prices should come down in the near-term, which they have.

Regards,

USA320Pilot

 

[BoeingBoy]

BoeingBoy:

As I have repeatedly said said Crude Oil prices were overbought due to inaccurate fundamental analysis....

[post="262050"][/post]​

You mean when you said this....

In my opinion, in the short-term there will be some increases due to some short covering and bullish speculators, but the trend should continue down in anticipation of next week’s OPEC meeting in Iran.

[post="254558"][/post]​

You might want to get some new candlesticks and stokies (maybe even some chicken bones and eye of newt), cause now you say....

Over time I believe commodity prices will climb...

[post="262050"][/post]​

But then you said.....

I’m hopeful crude oil prices will stabilize around $45 per barrel, which could be a good time to hedge.

[post="254558"][/post]​

Does this fall under the "predict everything so no matter what happens I can say I was right" theory of forecasting you subscribe to?

I can see it now. If this place folds and the bones are being picked clean, you'll be saying how you predicted it since the "A" in "M&A" stands for acquisition and that's what'll be happening.......

Respectfully,

Jim

 

[TheLarkAscending]

Does this fall under the "predict everything so no matter what happens I can say I was right" theory of forecasting you subscribe to?

Ladies & Gentlemen:

We have a winner!

Very astute observations and evaluations, Jim!

Peace -

Lark

 

[North by Northwest]

At $50.00 and falling FAST this morning. Crude inventories announced @ 3.6 million. Gasoline inventories stood @ 800,000 barrels. The market was expecting 100,000 barrels! Look for oil to fall to 45 min. Huge slide. I hope the speculators loose their :down: shirts!

 

[FWAAA]

At $50.00 and falling FAST this morning. Crude inventories announced @ 3.6 million. Gasoline inventories stood @ 800,000 barrels. The market was expecting 100,000 barrels! Look for oil to fall to 45 min. Huge slide. I hope the speculators loose their :down: shirts!

[post="262095"][/post]​

Bubbles have a way of making poor men out of rich men. B)