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Moe Szyslak

Oil jumps on OPEC, Libya comments

31 posts in this topic

Its almost laughable now..Libya possibly cutting oil production due to a well supplied oil market. Now they are starting to play games....just to keep the price high because they know the speculators are mentally unstable.

AP

Oil jumps on OPEC, Libya comments

Thursday June 26, 12:00 pm ET

By John Wilen, AP Business Writer

Oil prices rise sharply as OPEC president says prices could pass $150; Libya may cut output

NEW YORK (AP) -- Oil futures shot up to nearly $139 a barrel Thursday after OPEC's president said oil prices could rise well above $150 a barrel this year and Libya said it may cut oil production.

Light, sweet crude for August delivery rose as high as $138.95 a barrel shortly after the New York Mercantile Exchange opened before retreating some to trade up $3.59 at $138.14.

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Chakib Khelil, president of the Organization of the Petroleum Exporting Countries, said he believes oil prices could rise to between $150 and $170 a barrel this summer before declining later in the year. Khelil said he doesn't think prices will reach $200 a barrel.

The head of Libya's national oil company said the country may cut crude production because the oil market is well supplied, according to news reports.

"Shokri Ghanem, the nation's top oil official, declined to say when a decision would be made on whether to lower production, or give any indication of the size of the cut under consideration," said Addison Armstrong, director of market research at Tradition Energy in Stamford, Conn., in a research note.

Oil futures were also rising as investors reassessed comments the Federal Reserve made Wednesday when it held a key interest rate unchanged. Many investors who had expected the Fed to raise interest rates in August now think a rate hike is unlikely until after the November election or next year, said James Cordier, president of Tampa, Fla.-based trading firms Liberty Trading Group and OptionSellers.com.

Interest rates affect the dollar; many analysts believe the Fed's rate cutting campaign, which began last September, had much to do with weakening the dollar against the euro and sending oil prices skyrocketing. Investors buy commodities such as oil when the greenback is falling. Also, a weaker dollar makes oil less expensive to investors dealing in other currencies.

The dollar slid against the euro after the Fed's comments Wednesday, and was down again on Thursday.

"Breaking through $140 now ... seems hard to avoid," Cordier said.

Retail gas prices, meanwhile, were unchanged overnight at a national average of $4.067, according to a survey of stations by AAA, the Oil Price Information Service and Wright Express. Gas prices have retreated slightly from a record of $4.08 set June 16, but are likely to fall much more as long as crude oil remains in its recent range between roughly $131 and $140.

"If we go through $140, we're at $4.25 on gas within a week," Cordier said.

In other Nymex trading Thursday, July gasoline futures rose 8.08 cents to $3.4749 a gallon and July heating oil futures rose 13.09 cents to $3.8801 a gallon. July natural gas futures rose 20.3 cents to $12.956 per 1,000 cubic feet.

In London, August Brent crude futures rose $3.64 to $137.97 on the ICE Futures Exchange.

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I think ya hit the nail on the head there. like ya say its almost laughable, tears are coming down my eye's. The futers market for is going rampid now that investment companies are afraid of the morgage seen. These companies are looking for a place to put the money and oil seems to be it. I feel real bad for these people that have money in oil when this bubble pops its gonna hurt and its gonna drag a lot of people down with them.

I'm not an expert, I also see the game being played here. There has to be a way to stand up to this. Consevation wont work they just cut back on prpduction. I see drilling not working because again the will cut back on production.

Someone out there has the answer he I THINK HE'S BEING STIFELD, or not given a platform to speak from and its not oil companies or any politcal party.

The futures Market and the speculater system has not been publicised much for some time but now it is getting more attention. I see it talked about on the independant networks but hardly on the big networks. Gee I wonder why, could it be the companies that own the big networks are investing in the futurs of oil.

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Yeah, I just looked at the yahoo finance page... Here are the headlines. Anyone else find a few of these amusing?

Top Stories

Dow Plunges 250 Pts to 2008 Low Amid Downgrades, Oil Spike-

1Q GDP Revised Up to 1 Percent- AP

Existing Home Sales Rise, Median Home Prices Fall- AP

Oil Jumps on OPEC, Libya Comments- AP

OPEC Chief Sees $150-170 Oil in Coming Months- CNBC

Fed Signals Aggressive Rate Cutting is Done- AP

Citigroup at 10-Year Low, Goldman Urges Short Sale- Reuters

GM Drops to 53-Year Low, Goldman Urges "Sell"- Reuters

Yahoo Reorg Will Be Announced Today- All Things Digital

Oil Bubble Set to Pop: Crude to Fall 25 Percent in 6 Months, Says Invesco's Garnick- Tech Ticker

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Looks like all is well in the good ol U.S.A.

At least thats what our politicians would have you believe.

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What? I didnt see anything on Paris or Britney or Lindsey.

I cant believ I just referd to them ,sorry, shame on me!

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I would say its time to start to take the oil from Iraq as many state that is why we are there. Ship some home until they have paid back thier debt to the US taxpayer.

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I would say its time to start to take the oil from Iraq as many state that is why we are ther. Ship some home until they have paid back thier debt to the US taxpayer.

Now that's the best idea I've heard in a long time. I've brought it up at work before and get beat down by it.

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Yeah, but if we did that, we would be proving all of the "No blood for oil" wackos correct.

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Quote:
The head of Libya's national oil company said the country may cut crude production because the oil market is well supplied, according to news reports.

We know the market is not well supplied. Worldwide demand is quite well out in front of worldwide supply.

In whose best interest is it to use rumors to fuel the commodities market into further inflating the price of a barrel of oil? Wouldn't be oil producing nations like Libya, would it? Sounds like one more rich oily Mideastern dude using the media to play the rich oily Mideastern dude game.

Wish I could play. frown

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Quote:
We know the market is not well supplied. Worldwide demand is quite well out in front of worldwide supply.

I will give you that there is no surplus, but I don't really believe there is a an actual shortage...well other than on the commodities market. If there was a true shortage there would be gas stations turning away customers cuz there is no gas to sell them.

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If there was a true shortage there would be gas stations turning away customers cuz there is no gas to sell them.

If worldwide demand exceeds worldwide supply, that's a shortage.

Just because there aren't gas stations turning away customers in the Unites States doesn't mean there isn't a shortage in other countries, particularly in China and India, where the increased need is sharpest.

You can't frame a worldwide crude oil issue using the U.S. and gasoline as your only example, because gasoline isn't the only product refined from crude oil, and the world ain't full of Americans.

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I can agree with you to a point. The exception being the fall of the American dollar. This should result in other foreign markets gaining the edge in buying power and in fact should actually transfer the shortages to the biggest glutten in the pack....us. If our dollar isn't worth the paper it's printed on then other countries should simply be able to outbid us, which should translate into shortages of gasoline, fuel oil, diesel, and the countless other products we enjoy from crude refinement. I suspect that some of the cost increase must be due to the shortage or inability to meet demand for the refined product and not necessarily the raw crude. This is evident everytime the price for crude drops while the price for the finished product continues to rise or vise-versa. Granted, this is but one small piece of the puzzle.

Bob

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I ain't seen stories or articles about china or any other country running out of fuel either. I have read in the not too distant past that they is an adequate supply every except on the commodities market. Look up Micheal Masters report to congress kinda outlines what I am saying.

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What has people worried is that new oil reserves are brought online at about the same rate as old ones are drying out. Search for Hubbert Peak Theory. In 1956 he predicted the US would reach peak oil production between 1965 and 1970. The US peaked in oil production in 1971 and has been in decline ever since.

He also predicted the global oil peak would be 2000. Thankfully this hasn't happened yet, and there were some reasons cited for it. In actuality I would guess this will be very difficult to predict because there are so many variables involved (politics, international economic conditions, price of oil, value of dollar, etc).

On one hand I'm hearing experts saying the oil market will crash. Then on the Channel 5 news this morning they say some are predicting gasoline to hit $7 within a few years. Who knows, but it is very interesting.

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Yeah, but if we did that, we would be proving all of the "No blood for oil" wackos correct.

And the world will hate us more? Not likely. As there is no workable exit strategy in my opinion, (blood will continue to be spilled by the warring tribes regardles of our presence), recouping some of the insane amounts of money is the right course. Maybe Halliburton could help us with that at a small fee of course. smirk

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The problem with all these predictions is like Solbes stated one "expert" says the market will crash and another says $200 per barrel. Well who do the speculators listen to? They hear $200 a barrel and put tons of money in the market which drives the price artificially high. One of the predictions will come true but which one? A crash, sorry "correction", $200 a barrel, or someplace in between? Like the song says "Two men say the're Jesus, one of them must be wrong".

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Oil is being played like diamonds, only put enough on the market to keep the price managed by those that have it.

every day investors are given hundreds of millions of 401K money and retirement monies. They need a place to put it and right now the brits who are unregulated at this game and these investors are looking to make thier portfolios shine at the cost of the consumers.

what would happen if oil returned to 80$ a barrel tomorrow?

It would make Enron look like a three year olds piggy bank.

these times are being fueled by greed and the absence of ethics.

with no sense of the reality that there is a power greater than themselves.

Hold on to your hats, it's going to get interesting.

Keep your chin up and do the right thing at all cost.

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It will burst, the question is when. This is why oil producing countries do not want to start over producing because they want to minimize the fall. Has anyone noticed that gas prices are going down as oil goes up? Yes fishgutz77 this will be interesting.

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This thread is starting to remind me of the old Chinese curse, which doesn't sound like a curse at all until you start thinking about it: "May you live in interesting times."

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This thread is starting to remind me of the old Chinese curse, which doesn't sound like a curse at all until you start thinking about it: "May you live in interesting times."

I only know two things for sure about oil and gasoline

First one is it's costing me too much

Second thing is I want it cheaper

I don't make enough to pay for it to do everything I enjoy

Nobody ever became rich teaching

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Its all just a game and the sad part is, we are on the recieving end of it. Plenty of oil and money to be made as the record profits show.

If we cannot control the price of oil fine, but, we can control the worlds price for food and we should start to do it.

But, just like the last wars we have fought, we don't do anything to win, only to help and the loser in the end is the good ol U.S.A.

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Right you are Harvey. This game gets played every year at this time. Every year a pledge by Congress to investigate and every year the stakes keep going higher. How much money is spent by oil on contributions to the two parties, PAC's and lobbyists? How long have we been talking about the lack of refinery capacity in this country?

The only short-term solution is reduced consumption and over the next few weeks and months, I believe we will continue to see reports evidencing that it has. The problem is that it can only fall so far. People still have to get to work. I certainly have seen fewer vehicles heading north, fewer boats on the water and those that are have slowed it down.

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