[Cashmere]

. . . in electronic trading before open outcry.

This is going to be one fascinating week.

If KSA announces a "major" production increase next month and the markets continue to move higher . . .

. . .

Then the bluff has been called and it's game over.

Batten down the hatch maties, it's going to be a very rough stretch.

[MD]

Pretty soon empty words won't be enough to lower oil prices any more.

Your "pretty soon" occurred several months ago.

[MD]

...

Less than a dollar drop after the recent Saudi 500,000 bpd production increase announcement doesn't count?

Neh...that was just me selling off.

[charliehelyes]

oil is back up by over a dollar at $135.50 now so

[Micki]

Oil up now (looking at Brent) 30cents. Gold up $8



edited;
and had a look at US light July contract and it is up 60+ cents

[Niagara]

So my spooky-eye emoticon might be justified in my post last week

http://www.peakoil.com/post690184.html#690184

[Micki]

Wov, next look oil was up over $3.
Brent was at one point over $140.
If this is the summer doldrums, the autumm is going to be a ride.

[Cashmere]

17 days? 17 days? I don't mean to rain on your parade, but we're not going to last 17 hours.


I'm not convinced that we're making it to the Fall.

If we're going up 3 bucks a day, I see .gov intervention way before the Fall. Or is that, the fall?

[cipi604]

Even IF they increase the production by 500.000 bpd that won't help much.

[Hartmann]

500.000 bpd to burn as kick as possible in the market and feed the continuous increase of the demand.

i doubt that prices go down again , the only effect is delay the super spike and the final collapse. the production not could be raised anymore if the fields are depleting .

[alecifel]

If we're going up 3 bucks a day, I see .gov intervention way before the Fall. Or is that, the fall?

What form of .gov intervention do you forsee?

[Cashmere]

.gov intervention that I see . . .

at some price in oil - - -

Pass emergency legislation forcing caps in the NYMEX on how much a commodity can move in a given period.

or

Pass a bevy of laws attempting to control who's investing in oil - e.g. - you can't buy oil unless you intend to take delivery.

or

Pass a "windfall profits" tax to make investing in oil unattractive.

or

Put economic/military pressure on oil producers to produce more and/or lower price or face retaliatory U.S. action.


Any one or more of which will result in the faster onset of shortages.


Chocolate rations going up to 15 ounces people. 15 ounces.

[DantesPeak]

Oil up now (looking at Brent) 30cents. Gold up $8



edited;
and had a look at US light July contract and it is up 60+ cents

Another factor today was the monthly Treasury report on international transactions, aka the TIC report.

Apparently the dollar is still being propped up by foreign central banks/goverments/funds. But they are losing the battle, with less net foreign money coming into the US.

With the trade deficit on the verge of exploding upwards due to the higher price of energy, downward pressure on the dollar is accumulating.

It will be hard to keep the price of oil down in these curcumstances.

[MD]

It will be hard to keep the price of oil down in these circumstances.

Don't forget the obvious corollary: It will be hard to keep imports up.

[copious.abundance]

. . . in electronic trading before open outcry.

This is going to be one fascinating week.

If KSA announces a "major" production increase next month and the markets continue to move higher . . .

. . .

Then the bluff has been called and it's game over.

Batten down the hatch maties, it's going to be a very rough stretch.

Well, here are the results of your "fascinating week."

On Monday the 16th, the day you posted this, oil opened on the NYMEX at $134.51. It closed on Friday at $134.62. Up a whopping 11 cents. (source).

So much for the "rough stretch."

[DantesPeak]

. . . in electronic trading before open outcry.

This is going to be one fascinating week.

If KSA announces a "major" production increase next month and the markets continue to move higher . . .

. . .

Then the bluff has been called and it's game over.

Batten down the hatch maties, it's going to be a very rough stretch.

Well, here are the results of your "fascinating week."

On Monday the 16th, the day you posted this, oil opened on the NYMEX at $134.51. It closed on Friday at $134.62. Up a whopping 11 cents. (source).

So much for the "rough stretch."

And it hit $140 during the week, as compared to $132 when I made my post.

So your point is - markets fluctuate????