*oops*

Setting a new record, even if it's not an absolute record price-wise but is part of the largest upward commodities move in recorded history, in my opinion makes it belong and very much welcome in this record-setting thread.

There will be an inevitable short-term correction as the next contract (Nov 2008) settles in, but a rise of over $26 from intra-day low to intra-day high is a heck of a move.

It's taken a while, but in these past few sessions we have established the "mother of all support levels" to be : $100 oil, $850 gold, and 80 USDX.

Rejoice, for interesting times are here again.

Not to be picky, but wouldn't the $80 for USDX be a resistance level?

Ah yes, 80 *was* a 23-year support level that was broken, that's what I meant.

The sound-bite doesn't sound so good if you were to put it as "the 2 mothers of all support levels and the single mother of all resistance levels", you know what I mean?

Well, if we really wish to split hairs here, the thread title is Another Record, not Another PRICE Record or Another OIL (Price) Record, so really, any Guinness addition fits...

steady at $120 I wonder whether we will see $100 again?

Looks like we're back down to 107.

http://finance.yahoo.com/futures?t=energy

New front month. Someone got caught really short on October futures.

Soooo, meet ya same time, same place, next month?

The mechanism here is noteworthy. The dollar was getting stronger since June against the Euro, helping oil come down. Now that we need the bail out all the money is going back into commodities again and oil is going up. I was watching Paulson fumble through the question about why exactly they needed 700 billion right now and then it hit me. They do not know what the problem really is in detail or how to fix it and they are megalomaniacs to boot. Give us unlimited power and we will fix your problems. Deregulation created Enron, it created this crisis, and now they want Congress to simply keep it's nose out of money all together.

So we have on the one side the huge house of cards called finance which is a bet on the future that cannot come to pass during a time when oil production growth in constrained, then on the other side we have that very truth, oil is more scarce today than it was ten years ago.

There is no way out of this since every rush away from stocks inflates oil and slows the economy increasing defaults on the credit bubble which cannot have any real value unless we find a few more Ghawars in the next year and get them online in the next two.

This is peak oil at work ladies and gentlemen and the worst is far worse than this and it is yet to come.

BTW, I am glad to see that most of you here now ignore people who think that returning to $107 is a sign that we are all hysterical doom mongerers.

It's over people. Best get to learning how to relocalize.

Kevin Phillips was on Bill Moyers the other night and he basically told it like it is, he even included the phrase 'peak oil' as number six on his list of seven reasons why we are entering the second great depression. He also noted that government has taken to lying about the numbers, cooking the books I guess you could say, to try to calm nerves and get some time to 'fix' things.

Understand that and you know why America has to go through this time. There is a truth to currency that most people do not understand. Adam Smith understood it. Currency is primary supposed to supply transactions in the economy, that is it's value. starve the economy of that 'oil' [to coin a phrase] and it languishes, give it too much gas and it eventually pops. The physical truths behind human economy cannot be ignored forever. The spiritual truths that connect physical truths to human ethics will exact a toll from those who disrespect them.

'The eyes of the Lord are in every place, keeping watch on the wicked and the just.' Proverbs

http://www.msnbc.msn.com/id/26850571/

Get this Helicopter Ben says we are at 'risk' of recession without bailout. By most honest accounts we are and have been in recession since at least 2005.

http://findarticles.com/p/articles/mi_k ... _n25458491

I sure hope that storm down by Puerto Rico does'nt find it's way into the Gulf. It would have nothing to do with global warming of course, which has nothing to do with fossil fuel consumption, of course, and has nothing to do with our non-negotiable, though apparently highly mortgageable, way of life.

Good night America!

While waiting for USDX to do its 76-80 consolidation thing and watching oil prices hold above $100-odd support, all we have to do now is to sit and wait for the newly-printed money to leak out into the real economy :

$700B rescue plan finalized; House to vote Monday

http://biz.yahoo.com/ap/080928/financial_meltdown.html

Congressional leaders and the White House agreed Sunday to a $700 billion rescue of the ailing financial industry after lawmakers insisted on sharing spending controls with the Bush administration. The biggest U.S. bailout in history won the tentative support of both presidential candidates and goes to the House for a vote Monday ...

Okay, so they decided to kill the economy first.

Oil prices back below $100 ...

T Boone Pickens said today in this CNBC interview that oil will be at $150.00 by this time next year because 85 mp/b is all we're ever gonna get.

Interesting interview and you all might find his comments about Paulson and the current crisis a fun listen.

Remember our ongoing game of "how low can it go"?

$89.53 !

It's dropped below $90 and USDX has decisively broken way above 80 and is at 81.2 and looks like it's headed for 82. Vertical moves like that make me really, really, really nervous.

It's not a good sign. Commodities across the board are selling off - it shows there is something seriously wrong with the money markets.