Oil Price Watch

[Chip Haynes]

Unless you live in Australia, is that a good idea?

Kunstler's rant this week is all about the end of globalization, and how the world will go back to being a very big place once the oil crashes. Holding foreign currency might not make much sense if no one where you live wants it.

[REDREAMER]

ahh you see if i had relocated my money any earlier the exchange rate would have meant its value here was a lot less....... now it's worth more.... is all.

shame we don't know these things in advance ... LOL!

when i arrived here my AU $ was worth about 78 us cents.......

now its 92...... see what i mean?

[Chip Haynes]

Ah, I see, said the blind man!

   So as long as the Ozbucks hold out, and the rate goes your way, you 'll do well. At some point, though, long after the oil crash takes down global commerce for good, you might have a tough time peddling foreign curreny in a foreign land.

[REDREAMER]

thats what bank transfers are for LOOONG before that ... 
and why one pay's particular attention.......

[1234]

93.45 , probably ready for a jog back to 89 to 90 area in the next few days.

[Chip Haynes]

Everybody sing: "Two steps forward, one step backward, oh yeah".

At some point, these speculative investors will drop any pretense of worrying about the price runup and shoot for the moon. It will most likely be triggered by an external/above ground event, but when it starts, it will be wild. We see them chaffing at the bit now, and holding back after short spurts of quick jumps in the price. I can't imagine where they might stop once they really get going.

And what the starting gun might be.

[Bionic_Oil_Gut]

Crude Oil   
$93.57
   0.04     0.04%
Is there no stopping this beast!

Ozzy dollar will continue to climb, at least $1.05 by Feb/March

[suburban_junkscape]

The stuff is hitting the fan. $1 a day. $150 by New Year's? Now gas if going up a penny a day.

[Bionic_Oil_Gut]

The stuff is hitting the fan. $1 a day. $150 by New Year's? Now gas if going up a penny a day.

We can only hope Sub! But seriously, the US is more than definitely spiralling into a recession without doubt. We in Oz are experiencing the biggest resources boom in History, we can’t get our shit out of the ground quick enough for the Chinese so its Happy Dayz for quite some time. So I guess as your dollar weakens your crude price climbs, and it is weakening dramatically so it’s not all to do with weakening supplies and unrest.

In our case because of our climbing dollar the black gold is getting more and more affordable, but when the good times end we are going to hurt bad, just like you guys are about to find out.

[Chip Haynes]

It will be interesting to see if there's any natural (or unnatural,) resistance to the $100 price barrier. As we've seen at other benchmark prices recently, the bidding tends to touch a certain high level during intraday trading, but back off for a day or two before keeping that level overnight- and moving on to the next benchmark. One hundred is a biggie, though.

Think the media will even notice?

 

[fred-windsor]

94$ by the end of the day?!

[Chip Haynes]

It closed at $93.53 at 4 pm EDST on the eastern North American seaboard. Lately we've seen the price rise in overnight electronic trading, so we might come in tomoorw to find oil at $94.00. At this rate, yes, will will most likely see $100 oil by New Year's.

And at some point, the price of gasoline has a lot of catching up to do.

[fred-windsor]

Loonie hits 47-year high above $1.05 US
Last Updated: Monday, October 29, 2007 | 3:07 PM ET
CBC News
The Canadian dollar's upward charge continued unabated Monday, as it topped $1.05 US to reach its highest level since March 1960.


The loonie was quoted at $1.0501 US in mid-afternoon trading, up just over a full cent from Friday's close.

That brought the Canadian dollar to a little more than a cent away from its postwar high of $1.0614 US, set in August 1957.

Rising oil prices and the likelihood of an imminent interest rate cut in the U.S. were giving the loonie more support on Monday.

Crude oil futures topped a record $93 US a barrel in New York trading as an approaching storm prompted Mexico to shut about a fifth of its oil production.

Rising commodity prices tend to boost the value of Canada's currency, as Canada is a net exporter of oil and many other commodities. Gold prices were also surging Monday, up another $4.80 to $792.30 US an ounce — a new 28-year high.

[Chip Haynes]

Congrats to Canada for the strong Loon! It's going to be interesting to see how that effects the snowbirds we get down here every year. will they show up earlier? Stay longer? spend more? Should be an interesting winter.

As for oil, if it rises a buck a week, it will be at a steady $100 by Christmas.

That's $100US, or 49 cents Canadian.

 

[del2les]

Anyone willing to bet that 600K shut in of Pemex is a beginning of the slowing oil exports by  producing nations ?  If so, see how fast things can spiral out of control without that hopeful months or years to prepare? $100 by TxDay?