Another Record ($143.67)

dohboi · Light Sweet Crude Joined: Dec 05, 2005 Posts: 1438

There's a lot of bouncing around=uncertainty. I'm still waiting for a "big" correction. Not that it couldn't happen short term. But a couple percent up or down is just not very impressive.

TheDude · Posted: Thu May 29, 2008 12:30 pm Post subject: Re: Another Record ($135.09)

Wait 'till word gets out about the drop in crude oil inventories.

TWIP is overdue, too...
_________________
Cogito, ergo non satis bibivi
C'mon man, who're you gonna believe?

pstarr · Posted: Thu May 29, 2008 2:56 pm Post subject: Re: Another Record ($135.09)

The NYT has a handy explanation for the drop in prices Link

Dan1195 · Heavy Crude Joined: Mar 19, 2005 Posts: 275

I am still trying to figure out why tankers in the Gulf would be delayed. Over at TOD there is mention that there have been no actual reports of issues with fog at the ports. Reporters were contacting the Coast Guard and they said there were no fog issues. Begs the question whether tankers are actually sitting in the Gulf or if the exports actually got "delayed" because they went someplace else or held up to do supply issues (i.e. Nigeria). Guess we will find out in 6 days which is true. One would expect a large build with the EIA explanation.

PeakingAroundtheCorner · Posted: Thu May 29, 2008 3:29 pm Post subject: Re: Another Record ($135.09)

Novus · Light Sweet Crude Joined: Jun 21, 2005 Posts: 1741

There are a lot of positive feedback loops that are going to drive the price of everything up no mater what. Look at the high price food. This is enabling farmers to purchase more oil and fertilizer to plant crops. This increases the price of oil which spurs alternative energy schemes AKA burning food in our tanks. Then food prices take another step up and the cycle continues. Total vehicle miles driven are down but energy use continues to climb. World wide EROEI is collapsing. This will not end until their is a massive catastrophe the likes of which the world has never seen before.

I found this graph over two years ago and it explains where we are and where we are going:

dohboi · Light Sweet Crude Joined: Dec 05, 2005 Posts: 1438

Nicely put, Novus, and nice graph. Any thoughts on when we reach point Z?

ki11ercane · Posted: Fri May 30, 2008 1:15 am Post subject: Re: Another Record ($135.09)

Does it really matter what a barrel of oil closes at? Down four bucks? Peak Oil is solved!

The world stage is too pre-occupied with doing "nothing" to try to work towards a solution to the problem. Consumption, trinkets, and pollution. The simple reality that oil is for sale to consume without any indication of a change in attitude to it's impact on the future of this world either economically or ecologically is insanity in itself. The world cannot even see the train coming at it.

I hope oil goes down to a $1.00 or up to $1000.00 a barrel. It's not going to make a difference on the outcome of their not being enough to go around or the oceans are dead. Whether the ill effects happen in 5 years or 30 or next winter, the price of 55 gallons of it isn't going to change that.

If 10% of 10% of 10% of the world gets it in time, that will be a feat in itself.

Starvid · Posted: Fri May 30, 2008 1:31 am Post subject: Re: Another Record ($135.09)

Working for gas.

_________________
Peak oil is not an energy crisis. It is a liquid fuel crisis.

dohboi · Light Sweet Crude Joined: Dec 05, 2005 Posts: 1438

Nice post, Killercane. I'm looking forward to more.

One minor point: I believe oil barrels as a unit of measure ("bbl") are 42 gallons (even though modern steel drums are 55).

dohboi · Light Sweet Crude Joined: Dec 05, 2005 Posts: 1438

Nice graph. It needs to be extended to include our current ~$130/bbl rate. That puts us back to the equivalent of the price in about 1880, when oil was a relatively rare, recently discovered material, mostly used in engines of pumps in coal mines and other specialized functions!

We really are returning to the 19th century faster than most here expected!

ki11ercane · Posted: Fri May 30, 2008 1:38 pm Post subject: Re: Another Record ($135.09)

threadbear · Expert Joined: Jan 22, 2005 Posts: 7763

A lot of gaming action, accompanying peak. That's what is responsible for most of the recent run up. I posted this on the tanker thread as well. It's worth reading.

Seeking Alpha:

NYMEX canceled all but 22M barrels that were scheduled for May Delivery, over 20M barrels below Cushing’s normal capacity.

Not only that, but the "experts" estimated we would have an inventory build this week, when clearly a massive shortage had been created. This led to a "disappointing" crude inventory report today and gave the NYMEX pump crew a chance to test $135 this evening.

http://seekingalpha.com/article/78440-the-oil-shortage-and-other-fairy-tales

Whether the author of the article thinks there is anything to actual peak oil, can't be determined from this article, but his description of attendant manipulation needs to be taken into account.

mos6507 · Posted: Fri May 30, 2008 5:12 pm Post subject: Re: Another Record ($135.09)

charliehelyes · Heavy Crude Joined: Mar 27, 2005 Posts: 105