Hoarding is exactly what the government is doing right now by filling the SPR, and frankly it's the best thing that could happen. It drives prices up. High prices encourage demand destruction. They also finance new well development. The hoarded oil gives us a buffer to fall back on once shortages become more prevalent. High prices are what we need in order to adapt to what's coming, and the sooner they happen, the better.
Joined: Jun 13, 2007 Posts: 3031 Location: Minniesotuh
Posted: Thu Apr 24, 2008 11:17 am Post subject: Re: Lehman warns that oil boom will deflate
Ssoo.. How does Lehman's wishful thinking measure up to their past performances in predicting the future? _________________ "RRrrruuuunnnn!!!" ~Apocalypto
Joined: May 19, 2005 Posts: 759 Location: Merry Ol' USA
Posted: Thu Apr 24, 2008 11:52 am Post subject: Re: Lehman warns that oil boom will deflate
^^^^I don't know, but based on their ability to make sound investments in the real estate market, I don't think I'd put too much credence in anything Lehman has to say. The same people have been saying the same thing for almost 5 years now. What do they think it's going to deflate to - $30/bbl? Let's even say it loses 20% off its peak and goes back down to mid-90s. So what? That still leaves gasoline at + $3 in the US and Diesel still floating around $4.
They say it as if once it deflates we'll all go back to $1 gasoline and Hummers everywhere _________________ After fueling up their cars, Twyman says they bowed their heads and asked God for cheaper gas.There was no immediate answer, but he says other motorists joined in and the service station owner didn't run them off.
Joined: Mar 04, 2005 Posts: 2504 Location: New Zealand
Posted: Thu Apr 24, 2008 6:44 pm Post subject: Re: Lehman warns that oil boom will deflate
Oil prices slip on dollar recovery, rising US crude inventories
Quote:
Oil prices fell sharply Thursday as a strengthening dollar and rising US crude stockpiles prompted traders to lock in profits after this week's record-breaking run.
New York's main oil futures contract, light sweet crude for delivery in June, dropped 2.24 dollars to close at 116.06 dollars a barrel. The May contract had struck a record high 119.90 dollars before expiring on Tuesday.
In London, Brent North Sea crude for June delivery on Thursday settled 2.12 dollars lower at 114.34 dollars a barrel after earlier hitting a record intraday peak of 116.87 dollars.
"Crude futures slipped lower, falling under pressure from the recovering greenback," said Sucden analyst Andrey Kryuchenkov.
"It seems that a larger-than-expected increase in US crude inventories during last week and a stronger dollar were good excuses for some investors to book profits."
However, prices were supported by ongoing supply worries.
Talks aimed at heading off a planned strike at one of Britain's key oil refineries broke down Wednesday, a union spokesman said.
The collapse of discussions between officials from Unite and Ineos, which owns the Grangemouth refinery between Glasgow and Edinburgh, means 1,200 workers at the site will go on strike Sunday and Monday.
Members of a white-collar union working for Mobil Producing Nigeria (MPN), an affiliate of US oil group ExxonMobil, began an indefinite strike on Thursday over pay and working conditions.
AFP _________________ Human history becomes more and more a race between education and catastrophe. H. G. Wells.
Fatih Birol's motto: leave oil before it leaves us.
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Let's even say it loses 20% off its peak and goes back down to mid-90s. So what? That still leaves gasoline at + $3 in the US and Diesel still floating around $4.
