Today Crude Oil Futures Settled At $49 Per Barrel

[USA320Pilot]

Today Crude Oil futures traded at $49.20 per barrel down $2.57 or about 5 percent. This is the first closing price below $50 per barrel in about two months.

In my opinion, with the Futures price dropping below the key psychological support level of $50 there could be a market sentiment shift to “bearishâ€￾. Moreover, the security had significant technical damage, which could also lead to lower prices as speculators and technical analysts lock in profits.

Fundamentals seem to support lower prices too, and I believe we could see crude oil futures drop to about $45 per barrel in the not-so-distant future.

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Regards,

USA320Pilot

 

[ua767fo]

In my opinion, with the Futures price dropping below the key psychological support level of $50 there could be a market sentiment shift to “bearishâ€￾.

[post="265551"][/post]​

I think you mean bullish. Whats amazing to me is how much of the market trades on emotion, inlieu of rational thought.

Of course, as the price drops, which I agree with you, it wil, OPEC will cut production. They are a despicable lot.

DENVER, CO

 

[totobird]

Based on history as the Summer driving season kicks in crude prices will once again rise.
$60 a barrel is not out of the question over the next month or so.

 

[local 12 proud]

prices will never be stable as long as we are occupied in the middle east, we are just one pipeline explosion away from oil prices trending upwards!

 

[autofixer]

The economic conditions in the US are weakening (Causeing Oil prices to come down, but is a weaker economy a good thing for U?) . Most modern recessions have been preceeded by large oil price increases. Crude supplies are high...look for the producers to reduce production when they get to their price target of around $40.

The increased fuel prices are like a tax increase. The average American family now has less to spend due to gas and oil bills. This is dragging the economy down and unless some stimulus is injected into the economy (ie tax cuts), we may be in for a full fledged recession this year.

http://www.economist.com/agenda/displaySto...tory_id=3930626

http://money.cnn.com/2005/04/29/markets/oil.reut/index.htm

 

[calibrator]

The economic conditions in the US are weakening (Causeing Oil prices to come down, but is a weaker economy a good thing for U?) . Most modern recessions have been preceeded by large oil price increases. Crude supplies are high...look for the producers to reduce production when they get to their price target of around $40.

The increased fuel prices are like a tax increase. The average American family now has less to spend due to gas and oil bills. This is dragging the economy down and unless some stimulus is injected into the economy (ie tax cuts), we may be in for a full fledged recession this year.

http://www.economist.com/agenda/displaySto...tory_id=3930626

http://money.cnn.com/2005/04/29/markets/oil.reut/index.htm

[post="265694"][/post]​

Gee, glad I don't own a garage/auto shop

 

[autofixer]

Calibrator: It's a transmission shop. Why do you think I pay such attention to these matters...as well as being U pilot.

 

[calibrator]

Calibrator: It's a transmission shop. Why do you think I pay such attention to these matters...as well as being U pilot.

[post="265696"][/post]​

Yea, I know you are the great one...ego ego ego as high as you fly

 

[SalesGuyCCY]

USA320Pilot is DREAMING! There's no plan for more oil into the U.S! Doubtful you'll see a meaningful and long-lasting drop in fuel. They should plan on $50-$60 a barrell for a long time!

 

[Busdrvr]

Gee, glad I don't own a garage/auto shop

[post="265695"][/post]​

Yeah, I'd hate to own a garage with fuel prices going up. surely no one will be getting the injectors clean, the car tuned, the filters replaced, or the tires properly inflated in order to get better MPG's..... Nah, never...

 

[autofixer]

Calibrator: What's with the ego thing? I was only responding to your post about oil and to why I pay attention to the market. You are being so sterotypical about pilots. Actually I have been on a volutary leave for over 2 years, so you can see I do not NEED to strut around in pilot uniform.

Bus, you are sooo correct. The trany business has been good too.

 

[calibrator]

Calibrator: What's with the ego thing? I was only responding to your post about oil and to why I pay attention to the market. You are being so sterotypical about pilots. Actually I have been on a volutary leave for over 2 years, so you can see I do not NEED to strut around in pilot uniform.

Bus, you are sooo correct. The trany business has been good too.

[post="265732"][/post]​

That was "not" stereotypical comment but a factual one...

Your pilots pals don't need to pile on top coming to your rescue because owning a auto shop is something I have been involved with eons ago, you can have all the grief with the whining public and their vehicles which they worry over more so than their own bodies.

 

[SpinDoc]

USA320Pilot is DREAMING! There's no plan for more oil into the U.S! Doubtful you'll see a meaningful and long-lasting drop in fuel. They should plan on $50-$60 a barrell for a long time!

[post="265722"][/post]​

SalesGuy:

Just because speculators in the oil futures
market want it to be $50 - 60/bbl., doesn't
mean it will be. Face it, the market is not
rational right now and will go down. If I
personally knew someone who was speculating
in oil futures right now, I would break their
legs because they are bidding up the price
based on their own arrogance and
irrational exhuberance, and causing
widespread harm to the general economy.

W will find a way to get the filthy Arabs
to increase production, just watch. He
doesn't want a recession on his watch.

 

[Busdrvr]

you can have all the grief with the whining public

and that's differant than the airline industry how?

 

[BoeingBoy]

For what it's worth, crude reversed it's recent slide today. Whether this marks a mere breather on the way down or a sign that $49-$50 is a bottom I have no idea.

Current Bloomberg numbers:

NYMEX $50.95 (up $1.23)
WTI $49.85 (up $0.13)
Dated Brent $49.93 (up $0.60)

Crude Oil Surges as OPEC Minister Forecasts Fourth Quarter Demand Growth

Nymex Gasoline Rises on Expectations of Strengthening Fuel Demand in U.S.

Jim