Another Record ($143.67)

killJOY · Fission Joined: Feb 21, 2005 Posts: 2510 Location: ^NNE^

Oil up to a new record, DOW down to a two-year low.

Wow.

It's really happening.

Shocked

PeakingAroundtheCorner · Posted: Thu Jun 26, 2008 1:41 pm Post subject: Re: Another Record ($139.89)

bodinagamin · Posted: Thu Jun 26, 2008 1:47 pm Post subject: Re: Another Record ($140.39)

NoWorries · Tar Sands Joined: Jun 05, 2008 Posts: 79

Ebbs and flows. We knew this was coming (per Goldman Sachs and others). But even Goldman Sachs (Murti) is saying prices will fall back eventually, possibly by Christmas.

Troyboy1208 · Posted: Thu Jun 26, 2008 2:00 pm Post subject: Re: Another Record ($140.39)

yea because were gonna be in the reality show "Depression: Take Two!"

Arsenal · Posted: Thu Jun 26, 2008 2:04 pm Post subject: Re: Another Record ($140.39)

I think TPTB will try to keep the wheels on this bus rolling through the elections and X-mas but things might turn really ugly after that. Esp with heating oil in the North East..

But every time I try to predict what is going to happen, events change.. Guess that is the fun thing about life.

Smile

Arsenal.

NoWorries · Tar Sands Joined: Jun 05, 2008 Posts: 79

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To be honest, I think this increase is very modest, given the fact that:

1. the dollar dropped against the Euro today;
2. OPEC chief said today that prices will probably hit $170 by summer's end;
3. Libya announced possible output cuts today.

Frankly, oil should have increased by about $10 today, considering all of the above. It seems to be a reluctant increase. I think investors realize that demand destruction is sinking in.

AirlinePilot · Posted: Thu Jun 26, 2008 2:19 pm Post subject: Re: Another Record ($140.39)

What little real demand destruction the WORLD can muster will be trumped by decline at some point.

That is when the real fun begins and that is what even seemingly bright people cannot fathom.

I don't think we have that long to wait.

Zardoz · Posted: Thu Jun 26, 2008 2:30 pm Post subject: Re: Another Record ($140.39)

Schadenfreude · Intermediate Crude Joined: Jan 16, 2008 Posts: 606

The market has been acting like it was encountering a lot of resistance. Traders must have a whole shitload of sell orders right at the $140 level.
_________________
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NoWorries · Tar Sands Joined: Jun 05, 2008 Posts: 79

This is a very tepid "breakout". Seems like its weighted down. It's back down under $140. I think we could be seeing the effects of demand destruction on the futures market. Seems like the price trend is down, not up.

Mind you, hurricane season is coming up, and that could send prices skyrocketing if we get even a moderate storm in the Gulf. Also, if (when) financial conditions worsen in the US, the dollar will slide further. And that will send oil higher, of course. I think that's really the key factor.

vision-master · Posted: Thu Jun 26, 2008 3:04 pm Post subject: Re: Another Record ($140.39)

canis_lupus · Posted: Thu Jun 26, 2008 3:08 pm Post subject: Re: Another Record ($140.39)

My .02

It seems to me that oil prices are trudging higher. I don't know if we'll ever have a breakout (except for hurricanes, etc.). I get the feeling that as we click off the weeks, oil is going to steadily close higher -- sometimes more, sometimes less.

How do you eat an elephant?

One bite at a time.

FWIW

Plantagenet · Posted: Thu Jun 26, 2008 3:09 pm Post subject: Re: Another Record ($140.39)

Rather a brief pause and extremely small retreat on the oil price in the last couple of weeks before setting a new record today.

Reality is setting in for stocks......tomorrow could be bad in the market.