I'm hearing six and seven bucks. My sources are better than yours. Not saying it won't go lower first. But this is the talk in DC. Here's the real amazing thing. If that kind of talk is happening high up, wouldn't you think they'd get together and do SOMETHING? But no. The Dems would rather rule over a shithole than let a Republican have any credit for anything. BTW. One side is no better than the other. But, as a group, we are screwed.
$6-$7 and you will see a recession lasting years and years, the consumer will probably forget about trips to disney land and even their local cheesecake factory as higher energy prices nearly halt consumer spending. The auto and airline industry at this point would be close to a tipping point that would put some familiar names into chapter 11. The consumer is feeling the pinch at $4+, do you really think they will be able to throw money into this economy with 150-175+ oil, no way.
$6 a gallon gasoline would mean $7.50 a gallon diesel and $8 a gallon jet fuel, based on crude stocks and refining capacity (by type and volume). And it would definitely put us into severe recession land. Look at the stress $4 per gallon gasoline is putting on the country. I can't fathom anyone thinking otherwise, but I'd love to hear the counter argument.
If they pass this, expected 6 or 7, maybe even more per gallon. What are they thinking? Is the US the only country trading oil. These jokers will say what get them elected.
Yep...we Americans set the price for oil. Can the politicians get the sheeple to believe that the US gov can control oil prices? The regulations will just send the futures trading overseas and we'll lose yet another industry. It's a disgrace what the elected idiots are doing to this country. If they want to regulate something...how about regulating all these fricken wars...this is one industry where nobody will ever beat America.
It is shocking how naive and short sighted policy makers are. How exactly are we going to limit foreign commodity speculation? Why not limit stock market speculation too? Instead of limiting free markets why don't we just make the dollar stronger? It is ok for the govt to pop a commodity bubble but not the housing bubble? If you put a rock in front of the river, the river will not stop, it will just redirect itself. If people want to invest in commodities they will do it. At least now it is somewhat regulated. If the govt plays these games they will lose total control of these markets completely.
http://www.youtube.com/watch?v=EaR1CnfyrEo err limiting the number of players in a market allows the big players to control it. Hm those players are big oil. Great fucking thought retards. Speculators (wrong speculation) should be punished by sharply corrective prices. Maybe if we stopped bailing out all these dumb twats on wallstreet we would have this problem
Hmmm - No one's announcing their short positions yet. I believe oil is over done here but have no desire to jump on this bandwagon given hurricane season and all the sabre rattling going on with respect to Iran. Nymex contracts may not be an accurate proxy for oil markets any more, but if you look at the current price structure and a snapshot done a year ago it paints an interesting picture. Today Year Ago Note on the year ago chart, nearby months were experiencing contago which suggest ample supplies of crude were available to the market. The back months showed a declining trend with very little positioning, suggesting pricing would probably fall going out in time. On Todays chart, the nearby contracts show significant backwardization, suggesting supply tightness. At the same time there is greater activity further out in the back months which shows rising prices. It takes a lot of couage (or inside information) to take these kinds of positions. With all the rocket scientist financial engineering going on these days, the "enron" loophole, OTC market growth, rising hedge fund participation, pension plan participation, economic slow downs, credit crunches, and ICE, the underlying picture is much less clear theses days. According to the EIA, the US will import less crude this year than last. This suggests that demand destruction is in play which will either correct or at least stabilize prices at these levels. With discussions of alternative technology and more supply coming to market, the seeds of price correction are there for all to see. The above charts were based on data from the WSJ.com which was provided by eSignal.