OIL ______72.70 ______ +1.21___ +1.69% Up another 1.69% tonight, the higher oil goes the further this economy is from recovering, anyone thinking high oil prices is a positive is a complete idiot. Nothing but speculation is all it is.
I wonder if a large oil price value decrease could cause a banking crisis. I notice vague long term loans and loans to BNP Paribas, Citigroup and JP Morgan. Arab banks may have significant business relationships with European and USA banks. http://www.reuters.com/article/earningsSeason/idUSLT2518020090629 Jordan's Arab Bank says unhurt by Saudi exposure Mon Jun 29, 2009 8:23am EDT AMMAN, June 29 (Reuters) - Jordan's Arab Bank ARBK.AM, the country's biggest by assets, said on Monday it was exposed to Saudi Arabia's troubled groups Saad and Al Gosaibi but this would not affect its financial position. A statement posted on the Amman bourse gave no details of what the bank said were long-term loans extended to the groups in exchange for "cash, real estate collateral, stocks and personal and institutional guarantees." Arab Bank said the loans were extended over the course of a relationship spanning "decades" and would not harm its financial status. It did not say whether it had taken provisions against any of the loans. "The Arab Bank does not see in the debt of the two groups what would affect the bank's financial position or its shares in the bourse," said the statement signed by the bank's chairman and CEO Abdel Hamid Shoman. Arab Bank, one of the Middle East's major financial institutions, had been identified as a lender to the group among others including Citigroup (C.N), BNP Paribas (BNPP.PA), HSBC (HSBA.L), Standard Chartered (STAN.L) and JP Morgan (JPM.N), according to Reuters data. Banks in Saudi Arabia, Bahrain and Kuwait are thought to have the most exposure to the Saad Group. Saad Group, a $30 billion empire, is restructuring its debt. Earlier this month, the Saudi central bank froze the accounts of its billionaire chairman, Maan al-Sanea. [ID:nN0167288] Bankers say the perception that Arab Bank, whose geographic diversification has helped it weather past regional turmoil, was a safe haven during the current global financial crisis, helped push deposits up 24 percent to a record $31.9 billion in Q1. Assets rose 15 percent to $40.5 billion. Total shareholders' equity rose to $7.4 billion from $7.1 billion. The firm is one of the Arab world's largest privately owned banks, with nearly 25 percent owned by the family of Lebanon's former prime minister, Rafik al-Hariri, and over 20 percent held by Jordan's social pension fund. The rest is owned by mainly long-term investors. Arab Bank owns 40 percent of Saudi Arabia's Arab National Bank ANB 1080.SE. (Writing by Suleiman al-Khalidi; Editing by David Cowell)
Im hearing $65 tonight. The bulls should feel sad tonight, oil rolling over signals a weaker economy moving forward. Anyone expecting $100+ oil better sit back and wait, its going to take quite sometime before you see that again. Oil is headed back to the $40's.
$71.50. You have got to love the manipulation, Everyone is extremely bullish pushing up equities along with commodities and of course we all know what higher commodity prices leads to. Higher consumer prices, aside from that with oil jumping jumping jumping price at the pump are going to start moving higher, hurting consumers yet again, however its not going to happen at $115 or $140, its happening now, prices near me are nearing $3.00 again and at this rate $4.00 is a possibility. As stocks continue to gain and consumer confidence climbs so will oil however everyone knows oil cannot sustain these type of levels in this recession, oil might pop higher however sit back and start shorting because $30-$40 is coming back.
I wouldn't be shorting right now. Maybe $71.50 is too high, maybe not, but I don't think we'll see $30 any time soon. Growth in China alone will keep prices out of that level, not to mention a looming recovery in the USA.
That's highly speculative. What amazes me is that you are so much older than I am, yet you and so many others can't recognize the perilous structural change, and the effect that permanently losing millions of high wage jobs, with no substitutes, will have on this nation. You apparently cling to the quaint mantra of "lagging indicator" that's of limited value even in cyclical recessions, and no value during secular repressions. Jobs....are....the....only.....thing....that.....matters...............................................period.
A USA recovery is highly speculative? Really? You don't think GDP growth and declining unemployment will happen in the future? It's not a matter of if, but when. And I happen to think it will be sooner rather than later. I think of jobs and the economy is a real chicken and the egg situation. You need an improving economy to create jobs, and you need to create jobs to improve the economy. Jobs is certainly not the only thing that matters. You only say that because you live in Michigan.
I agree, but the goverment will just lie. They will say 200k jobs were created last month, how would we know. We can't go to every business in the US and ask. Thats what they do they LIE!
what neither of you get is that your normal fundamentals about a functional economy and the stock market dont apply here. unemployment is atrocious and going to rise yet oil is still at 70$? so obviously the economic recovery/domestic demand argument for why oil should be low is invalid. equating "economic recovery" and a higher price of oil is mass media propaganda. taking buzz words from the media that claims to equate cause and effect is ridiculous. the U.S. economy is going into a sever inflationary depression. Business cycles are not "normal" they are caused by central bank credit expansion (see Murray N. Rothbard, Ludwig Von Mises, F A Hayek and others). the only thing that matters with the price of oil is INFLATION (increase in the money supply). thats it. Oil is going up - to 100 and beyond. when? cant say for sure but it is and its not because of an economic recovery although you could say it is because of an indirect global recovery when our creditors let us go. the u.s. is going into a depression and oil will be over 100$. stop watching television and start reading a book.