I dont know about you, but getting excited about paying $3.00+ at the pump, should get to $4.00 by mid 2010. Oil climbs to new 2009 high * By Chris Kahn, AP Energy Writer * On Friday August 21, 2009, 11:49 am EDT NEW YORK (AP) -- Oil prices jumped Friday to a new high for the year after Federal Reserve Chairman Ben Bernanke said that the U.S. economy is nearing a recovery and other economic data backed him up. Benchmark crude for October delivery surged $1.81 to $74.72 after Bernanke spoke at an annual Fed conference in Jackson Hole, Wyoming. By midday, oil was trading at $73.91, topping the previous annual high of $73.23 set on June 11. Oil started climbing early in the morning after financial information company Markit said its composite purchasing managers' index showed the European economy was stabilizing. "If Europe's coming out of recession, the euro could get even stronger," analyst Phil Flynn said. "That means more demand for oil." And the dollar did fall against the euro to end the week, effectively making dollar-based oil cheaper across the globe. That created its own momentum and drew a lot of investor money into crude, meaning the price for gasoline and other fuels will likely move up as well. U.S. gasoline prices have flattened and few expect a major run on prices as the driving season winds down. Retail gas prices were almost unchanged, rising a hundredth of a cent to a new national average of $2.625 a gallon, according to auto club AAA, Wright Express and Oil Price Information Service. In addition to the falling dollar and other upward pressures on energy prices, new housing data showed that people are buying. Just as Bernanke began to speak, the National Association of Realtors said that home resales posted the largest monthly increase in at least 10 years, which may have helped push energy prices higher. Crude this year has tended to jump even marginally good economic news. It has been slightly more than a year since a barrel of crude soared close to $150 per barrel and few people believe that at some point, demand for energy will not rebound strongly. The question is when. Earlier this week, the U.S. government reported that crude in storage, which had been building for weeks, fell by a surprising 8.4 million barrels as refiners cut back on petroleum imports. Crude prices jumped sharply. In other Nymex trading, gasoline for September delivery added less than a penny to $1.9874 a gallon and heating oil for September delivery added 2.21 cents to $1.9073 a gallon. Natural gas for September delivery gave up a penny to $2.935 per 1,000 cubic feet. In London, Brent prices rose 95 cents to $74.28 a barrel on the ICE Futures exchange.
Just hedge with an investment in BP. And collect a massive 6.6% dividend while you're at it. It will make you feel alot better about rising oil prices.
$80+ reminds me of 2007-2008 all over again. the bubble is back and its better than ever, oil at $100 is going to destroy any talk of the so called recovery were in.
Oil up again Oil 82.79 +1.02 +1.25% At this rate by the time "driving season" kicks into high gear oil will be nearing $100 a barrel and $3.25+ at the pump. Predictions are for $80-$100 a barrel throughout 2010. How sustainable these price actions are is anyones guess. $100+ oil and $3.50+ at the pump will certainly create a drop in demand. Anyone thinking oil can sustain such frothy levels will be taken by surprise when oil dips once again.
I find all these so-called valid reasons laughable. Why of course there's a myriad of reasons why prices should move up or down if you look hard enough, especially in hindsight. But the best advice is don't fight the tape, regardless of what the reason might be. On that note, what the hell was the reason oil shot up to $150 last year? Demand from emerging markets and whatnot? Stop listening to those idiots on CNBC.
Rubin, Predictor of Oil Rally, Expects Return to $100 This Year Jan. 7 (Bloomberg) -- Jeff Rubin, the former CIBC World Markets Inc. chief economist who accurately predicted oilâs surge in the decade just ended, expects crude to reach $90 a barrel this quarter and $100 by the yearâs end. Accelerating demand in Asia and the Middle East will force consumers to rely on costlier non-conventional energy sources such as oil sands, said Rubin, who spent 20 years with the Toronto-based bank and last year published a book on energy economics, âWhy Your World is About to Get a Whole Lot Smaller.â Rubin correctly forecast in 2007 that crude would reach $100. âItâs safe to say that weâll see triple-digit oil prices by the fourth quarter of this year,â Rubin said in a telephone interview yesterday. âI would expect prices to move pretty close to that level, and be in the $90 range probably by the end of March.â Crude oil futures rose as high as $83.52 a barrel yesterday, surpassing last yearâs peak of $82, after the U.S. Energy Department reported a decline in inventories of distillate fuels like heating oil. In 2008, oil reached an all- time high of $147.27. The increase in oil consumption will be driven by emerging economies such as China and India rather than the industrialized nations of western Europe and the U.S., where demand has probably already peaked, according to Rubin. Developing world demand dwarfs the importance of political disturbances in oil suppliers like Iran and Nigeria, or output restraint among the Organization of Petroleum Exporting Countries, as drivers of the market, he said. Book Forecast Rubin forecast in his book, published last summer, that oil will advance to $200 a barrel by 2012. The commodityâs move toward this target will be âsteady provided the economic recovery is sustained,â he said. The strain of $200 oil on consuming nations may prompt a subsequent collapse towards $40, he added. âWhen we get into 2011 or 2012 and we start to deal with prices of $120 a barrel, $147 a barrel, $160 a barrel, thatâs where I think at least the global economy becomes very challenged,â he said. http://www.bloomberg.com/apps/news?pid=20601087&sid=aGdYep5FXDtE&pos=6
Oil closing above $80 ONCE again, any new highs in the markets and more losses on the dollar will push oil near $90 a barrel, at this moment the economy doesnt need $90 a barrel because spending over $3.00 a gallon is a little too much for those 20 million+ underemployed or for those totally out of work. Once oil starts to climb and gains that momentum its starts to become all about speculation, discounting anything to do with supply and demand.
Who cares about the actual demand and supply when the paper demand is 10 times the real demand? So much speculation out there, it hides the real effects of actual demand and supply.