Another Record ($143.67)

sameu · Posted: Wed Sep 12, 2007 12:48 pm Post subject: Re: Another Record

go banana! Razz

Tuike · Posted: Wed Sep 12, 2007 12:50 pm Post subject: Re: Another Record

Let's remind of this site where you can see Nymex crude prices in real time: http://www.fxstreet.com/rates-charts/world-indices/

Intraday high is now $80.

strider3700 · Posted: Wed Sep 12, 2007 1:06 pm Post subject: Re: Another Record

80.11 now showing on CNBC
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shame on us, doomed from the start
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Resurrection · Tar Sands Joined: Jul 22, 2007 Posts: 52

BBC New 24 picked it up about 10 mins before this post as 'Breaking news'.

Resurrection · Tar Sands Joined: Jul 22, 2007 Posts: 52

Interesting. They just did a headline summery, and said that oil hit an all time high of 78.99. Nothing about 80.

Leanan · News Editor Joined: May 20, 2004 Posts: 4533

It's $80.

Oil futures hit $80 a barrel

Leanan · News Editor Joined: May 20, 2004 Posts: 4533

Oil Rises to Record $80.18 on Larger-Than-Expected Supply Drop

Cynus · Intermediate Crude Joined: Aug 13, 2004 Posts: 594

I wonder if I should sell USO. I can get a nice 20% return if I do, but we have those storms coming in...
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One of these now am I too, a fugitive from the gods and a wanderer, at the mercy of raging Strife.
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http://apoxonbothyourhouses.blogspot.com

RdSnt · Posted: Wed Sep 12, 2007 3:56 pm Post subject: Re: Another Record

Be happy with 20% and if you've been watching the waves coming from Africa so far this year, they've all fizzled before amounting to much.

AirlinePilot · Posted: Wed Sep 12, 2007 4:00 pm Post subject: Re: Another Record

Cynus,

Its going to go higher. 20%? how about 30-35 or 40%. I doubt we have to wait too long either. I'm gonna sit on mine for a while and watch the show. If you believe even a small amount of the doom in here it is going to go higher. My guess is wait until the market starts pricing in peak oil. We haven't done that yet.

emersonbiggins · Posted: Wed Sep 12, 2007 4:36 pm Post subject: Re: Another Record

More importantly, oil is now trading at 2.11 Yergins.
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jato · Posted: Wed Sep 12, 2007 7:07 pm Post subject: Re: Another Record

Yergin

Hey, where has Michael C. Lynch been anyways? Laughing

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"Peak oil isn't more than an interesting industry factoid and doesn't have anything to do with the hysterics speculated on ad nauseum around here!" ReserveGrowthRulz

gswarriors4life · Coal Joined: Sep 12, 2007 Posts: 7

Cynus,

I think Oil will continue to go higher long term. However, I think it is dangerous to play oil with USO long term because since USO is based on futures contracts and based on my understanding, the price spread between USO and Oil will continually become larger over time.

For example, last year, the spread between oil price and USO used to be only $7. Now the difference is about $20! I'm not saying that USO will go down short term. Just saying beware, I don't think USO is a long term play for oil.

Best Wishes~

AirlinePilot · Posted: Wed Sep 12, 2007 9:04 pm Post subject: Re: Another Record

gs,

Could you elaborate on why you think its dangerous to invest in something which tracks a commodity (even the futures) of something most of us agree is going up significantly long term? I mean I understand why short term you must be careful but I dont see why an ETF based on oil is going to be a risky play. That is unless you believe it's coming down at some point. I find that difficult to believe at the moment. Its only risky If you think the markets are either overpriced or coming down sometime in the future. Just curious.

Cynus · Intermediate Crude Joined: Aug 13, 2004 Posts: 594

gswarriors4life, from what I understand, you are right when oil futures are in contango. I don't know the details of it, but somehow oil traders can affect the price of the oil traded with USO. And so you did see last year that the spread between the price of oil and USO got ever wider. However, this is not the case when oil is in backwardation as it is now.
By the way, I did end up selling. I'll buy again in the spring when prices usually bottom out.
_________________
One of these now am I too, a fugitive from the gods and a wanderer, at the mercy of raging Strife.
--Empedocles

http://apoxonbothyourhouses.blogspot.com