Oil Contrarian Sees Bubble Ready To Burst

[Busdrvr]

But over time the commodity price (along with others) will climb, which is what I indicated before. Some of this will be due to inflation and some due to fundamentals.



What commodity prices do you think will be higher in 10 years (adjusted for inflation)?

 

[repeet]

Gasoline prices unlikely to budge USA Today.

"President Bush will lament the high price of gas in an energy policy speech this week but doesn't plan to promise an immediate solution."

" Eventually, Bush said on April 8, Americans must change "the types of automobiles we drive." He has proposed spending $1.2 billion over five years to develop cars powered by hydrogen fuel cells."

"Weak retail sales in March are a sign that consumers may be limiting spending because they're worried about high energy costs, says John Silvia, chief economist at Wachovia, a financial services company based in Charlotte, N.C. The Commerce Department said last week that retail sales rose 0.3% in March, less than half the 0.7% increase predicted by Wall Street."

 

[usair_begins_with_u]

I believe you purposely twisted my comments to try to discredit me, however, the issue is simple. I believed crude oil at $58 per barrel was overbought in the near-term (and I indicated so) and would sell off, which it did. But over time the commodity price (along with others) will climb, which is what I indicated before. Some of this will be due to inflation and some due to fundamentals.

Hey, aren't you the guy who used to post as munhoi saying you basically lost your life savings in Uair stock?

 

[USA320Pilot]

Who is Munhoi? What's that?

Regards,

USA320Pilot

 

[BoeingBoy]

For anybody that may not have been watching, crude is up for the second day after "dipping a toe in the low end of the pool" and trading below $50. NYMEX & WTI-Cushing are over $52 today, with Brent @ $51.24.

USA320Pilot will have to explain the technical aspects, but CNBC is reporting that the reversal at this level is a technical indication of a possible new low range since $49-$51 was a resistance level on the way up earlier.

Finally, the weekly petroleum status report comes out tomorrow morning. According to Bloomberg's survey of analysts, domestic crude stockpiles are expected to show another increase but domestic gasoline stockpiles are expected to decline. It'll be interesting to see how much of the decline in crude prices last week translated to lower jet fuel prices.

Jim

 

[sentrido]

a little releif from the strategic reseve would be nice

 

[Busdrvr]

a little releif from the strategic reseve would be nice

[post="263056"][/post]​

To be refined where, and to be replaced by what. in truth, manipulating the oil markets is beyond the mandate of the Pres WRT the SPR

 

[RowUnderDCA]

what reuters' headline today read something like... crude oil up on refinery concerns.

Now, I just don't understand that at all. So folks are rushing out to buy crude oil so they can store it while it cant find refinery capacity? Or, perhaps, there is speculation that bottle necks will be relieved soon and create a run on oil for refining... or am I just expecting to much from the headline writers at reuters and not getting the nuance?

 

[sentrido]

To be refined where, and to be replaced by what. in truth, manipulating the oil markets is beyond the mandate of the Pres WRT the SPR

[post="263061"][/post]​

Worked in the past.

 

[BoeingBoy]

what reuters' headline today read something like... crude oil up on refinery concerns.

Now, I just don't understand that at all. So folks are rushing out to buy crude oil so they can store it while it cant find refinery capacity? Or, perhaps, there is speculation that bottle necks will be relieved soon and create a run on oil for refining... or am I just expecting to much from the headline writers at reuters and not getting the nuance?

[post="263065"][/post]​

Don't feel lonely - it does make one wonder. OTOH, here's how Bloomberg put it:

" April 19 (Bloomberg) -- Crude oil rose almost $2 a barrel, the biggest gain in eight weeks, amid speculation that growing gasoline demand will erode U.S. inventories and strain the ability of refineries to make enough of the fuel."

Crude Oil, Gasoline Prices Jump on Speculation Demand May Drain Stockpiles

Jim

 

[repeet]

Oil Holds at $52 as U.S. Supplies Drop

Qatari Oil Minister Abdullah al-Attiyah said on Wednesday that prices in a $40-$50 range are reasonable. "I believe there is no shortage of supply. The world will not face another shock," he said.

 

[delldude]

a little releif from the strategic reseve would be nice

[post="263056"][/post]​

thats a clintstone solution for polling purposes....

 

[sentrido]

poll shmoll, the election is over. Gimme some cheaper gas!! 😀