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$80 Oil
Sept 12, 2007 12:51:07 GMT -6
Post by jeffolie on Sept 12, 2007 12:51:07 GMT -6
SAN FRANCISCO (MarketWatch) -- Crude-oil futures climbed into uncharted territory Wednesday, reaching $80 a barrel after U.S. government data showed that crude supplies dropped more than 7 million barrels and motor gasoline inventories fell a sixth week in a row. Crude oil for October delivery climbed as high as $80 a barrel in regular trading on the New York Mercantile Exchange. That's the highest level a front-month contract has ever reached on the exchange. The previous record was $78.70 from the regular trading session on Aug. 1. www.marketwatch.com/news/story/crude-futures-hit-all-time-high/story.aspx?guid=%7B3211B78A%2D9943%2D46E7%2D877C%2D2EADD4D6BE3B%7D
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Post by redwolf on Oct 5, 2007 6:40:48 GMT -6
From the NY Times Business section: Can a Plucky U.S. Economy Surmount $80 Oil?By MICHAEL M. GRYNBAUM Oil prices, an economic scourge in decades past, have soared to record levels in recent years. But the fallout often seemed negligible: Americans kept spending; employment kept growing; factories, construction crews and retail stores stayed busy.
Now, however, the economy may be starting to sputter as damage from the weak housing market drags down growth. If payrolls drop significantly, will high-price crude oil begin to cause pain in a way that it hasn’t in nearly three decades?www.nytimes.com/2007/10/05/business/05oilecon.html?th&emc=th
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$80 Oil
Jun 1, 2008 16:40:47 GMT -6
Post by Talisica on Jun 1, 2008 16:40:47 GMT -6
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Post by Cactus Jack on Jun 2, 2008 7:25:48 GMT -6
$80 oil?
I'm convinced that with tighter controls on the Futures (oil commodity) Market by the Fed, tighter investment reqds of speculators, and Congressional oversight, the deflation that many economist believe has created a 25-35% p/bbl bubble in petroleum prices via speculation, could bring prices down to around the $85 in the short run, and once the inflationary costs of exploration, recovery, transport, and refining of the resources decrease to a stronger USD, the p/bbl price will float at a more realistic value of $60-$65.
The runup in oil is currently tied to greed in the speculative markets and in the weak dollar. As long as the futures market is subject to few regulations, almost no real cash investment beyond promissory notes, and upticks in fearmongering ..AND.. as long as the U.S Dollar remains weak against other currencies, high oil prices will remain the norm.
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