Today Crude Oil Futures Settled At $49 Per Barrel

[AtlanticBeach]

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

[post="266084"][/post]​

Jim-

The pros are finished making their money in the real estate market. The current volatility in petroleum is based on day traders, futures arbitrageurs and folks looking for the next big thing. Speculation is being based on press releases, as you have so aptly demonstrated. There is very little fact to continue to support $55/barrel crude at this time. View this as the Tech Market was in March, 2000. There will be fits and starts, but costs should get below $45 by September 1.

When I go to meetings and dentists tell me about their latest, greatest investment, it's time to get out. Three weeks ago, oil futures were the big topic of discussion. Doctors often make the worst investors.

 

[BoeingBoy]

Doctors often make the worst investors.

[post="266091"][/post]​

They can't be any worse than pilots.... Now a doctor in a V-tail Bonanze - that's a different story.

Jim

 

[AtlanticBeach]

They can't be any worse than pilots.... Now a doctor in a V-tail Bonanze - that's a different story.

Jim

[post="266103"][/post]​

You're right about that. We liked to put them in something that had a nice fat wing and gear that was down and welded.

 

[USA320Pilot]

Legg Mason Investment & Crude Oil Report

See Report

Regards,

USA320Pilot

 

[repeet]

Oil up, OPEC says pumping near full tilt

LONDON (Reuters) - Oil prices held above $51 on Monday and OPEC's president said the cartel will ck last month, even though OPEC producers have ramped up output to build a cushion of oil stocks ahead of an expected fourth quarter demand surge.

Algeria's oil minister Chakib Khelil said at the weekend that even if OPEC pumps at full capacity it may not be able to meet strong fourth quarter demand without sufficient inventories being built up beforehand.

It's the new economic reality. Get used to it.

 

[madders]

In my opinion the best thing Usairways can do is to get one of them oil company to invest in U
Or they can by a offshore oil platform and get a refinery
Or buy a few acres of land in Alaska

 

[Busdrvr]

In my opinion the best thing Usairways can do is to get one of them oil company to invest in U
Or they can by a offshore oil platform and get a refinery
Or buy a few acres of land in Alaska

[post="267764"][/post]​

They wouldn't be the first business to abandone the "core" business and become wildly profitable, Berkshire Hathaway comes to mind. but I know if UAL bought into oil it would be the first big sign that the price was about to crash.....

 

[TheLarkAscending]

See Story

Oil ABOVE $52

 

[BoeingBoy]

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.

Regards,

USA320Pilot

[post="265551"][/post]​

Coming up on two weeks from this "forecast"....

The IAE released their monthly report this morning (Paris time). The full report won't be available to non-subscribers for two weeks, but early trading has crude prices down somewhat (but still above $50/bbl). According to CNBC, the report is a "good news/bad news" document - worldwide demand growth was revised downward slightly (the good), but oil prices are predicted to remain at or above $50/bbl thru 2006 and that refinery capacity limits will help keep prices up (the bad).

Here's Bloomberg's articles on the IAE's report and early trading:

Crude Oil Falls After IEA Cuts Forecast for China's Demand on High Prices

Rising Oil Stocks Insufficient to Outweigh Capacity Constraints, IEA Says

Jim

 

[autofixer]

The market "psychology" may change if sustained prices in excess of $50 do not slow the economy that much. The Saudis may realize that their greatest fears may not come to pass and US drivers may just keep driving and not begin to economize much. If this happens, it may be that the Saudis, et al, may change their price target per barrel from $40 to $50. Just speculation on my part. The US economy must be stronger than anyone imagined ... to withstand these oil prices and keep on growing.

People are still driving their cars. My shop broke an all time center record last week. Business is >7% over last years numbers and I am in an econnomically depressed area.

 

[RowUnderDCA]

People are still driving their cars.

[post="268376"][/post]​

People are stupid.

 

[autofixer]

Any more stupid than flying fuel guzzling jets around at sub-profitable fares? :unsure:

 

[calibrator]

Any more stupid than flying fuel guzzling jets around at sub-profitable fares? :unsure:

[post="268425"][/post]​

TOUCHE