Oil rises to new six-month high.....Do I hear $75, $100, $150, $300

Discussion in 'Wall St. News' started by S2007S, May 28, 2009.

  1. S2007S


    So we get some positive data on durable goods and unemployment figures and oil rallies again. At this point if the economy is going to turn around like "its suppose to" at the end of 2009, oil is going to follow it straight up. This will only slow the economy once again, this time around high oil prices will totally knock down the consumer. I'm waiting patiently for analysts to start yelling higher oil prices because this will just be a laughing matter at that point.


    Oil rises to new six-month high

    By CHRIS KAHN – 8 hours ago

    NEW YORK (AP) — Oil prices jumped to a new six-month high Thursday as government reports showed that consumers are spending money and fewer people are requesting first-time unemployment benefits.

    Benchmark crude for July delivery added $1.28 to reach $64.73 a barrel on the New York Mercantile Exchange. Oil fetched as much as $64.99 a barrel earlier in the day, the most since Nov. 10.

    In London, Brent prices gained $1.30 to $63.80 a barrel on the ICE Futures exchange.

    Retail gas prices also have ticked higher every day this month as refiners produced less as the summer driving season begins.

    The national average pump price increased 1.5 cents overnight to $2.449 a gallon, according to auto club AAA, Wright Express and Oil Price Information Service. Gas is 40.1 cents a gallon more expensive than last month, but it's still $1.495 a gallon cheaper than a year ago.

    Despite the uptick in petroleum prices, U.S. energy consumption has dropped to its lowest level in a decade.

    The Energy Information Administration said Thursday that U.S. storage facilities added another 106 billion cubic feet of natural gas last week, putting the overall surplus well above the five-year average.

    That's largely because manufacturers and other big industrial power users have been slashing production and cut jobs.

    The lack of spending on energy over the past several months has meant growing supplies and lower prices, compared with last year.

    The government also said Thursday that U.S. oil supplies dropped unexpectedly by 5.4 million barrels last week. However, crude inventories remain near 19-year highs.

    With petroleum prices, "the biggest drag until now was the oversupply in everything. That's starting to change slowly," said Phil Flynn, an analyst at Alaron Trading Corp. "We saw the big pad of crude oil drop a little bit. And demand for oil has probably bottomed out. We may see demand start to go up."

    And data that suggests that the worst may be over continues to emerge.

    The government reported Thursday that demand for big-ticket manufactured goods took the biggest leap upward in 16 months in April. It ws the second increase in the past three months.

    OPEC decided to keep output levels unchanged at a meeting Thursday in Vienna. Saudi Arabian Oil Minister Ali Naimi predicted that oil prices will likely rise to around $75 a barrel by the end of the year on the back of growing demand in Asia.

    The Organization of Petroleum Exporting Countries has tried to cut into the global oil surplus by producing less. But member states continue to fall short of their goal of cutting 4.2 million barrels a day.

    Tanker tracker Oil Movements said Thursday that crude exports from OPEC countries increased by an estimated 310,000 barrels per day in the four weeks to June 13.

    In other Nymex trading, gasoline for June delivery rose less than a penny to $1.899 a gallon and heating oil added 3.33 cents to $1.595 a gallon. Natural gas for July delivery was up 25.9 cents at $3.897 per 1,000 cubic feet.
  2. I'm thinking we see $4 dollar gas by july.
  3. plan


    I think the oil futures guys should pipe in here but remember that steep contango we experienced a few months back? All that oil is being stored and once oil gets to $70-$75 I think we're going to hit a lot of supply.
  4. Gonna be another weak dollar story like the summer of 07, when the Fed started cutting rates like there was no tomorrow. That spurred crude through the roof and we're going to have something very similar now that the Fed is QE crazy.

    Gold and oil, and any other commods that rise with a cratering dollar. It's coming.
  5. Is it me or doesn't anyone notice a cycle that comes every year. I think its the easiest trading cycle.

    Buy in January
    Sell in Sept.

    Its as simple as that, buy oil futures, dxo whatever.
  6. $76 on July9.
  7. S2007S


    Up another $1, more great economic data today could send it to $68, oil in my opinion is way wayyyy overpriced. I believe the old $115-130+ is the new $75-$90, with the economy so weak oil will have a great impact on economic recovery. High oil prices cannot be sustained, I also believe the new administration would be quick to tap the reserves on anything higher than $100. They will act fast to keep prices from inflating like they did in 2008.
  8. Mikecon


    Will never have a recevory with oil above 50$. This whole crisis was caused by high oil prices not by giving bad loans to black people who couldn't afford them as some would suggest.
  9. I can hear it now. This is good it means the economy is strong.
    #10     May 29, 2009