Oil Price Watch

[Chip Haynes]

The price of oil just touched $79.00.

So much for the old record.

Will we see $80 TODAY??

[DarthBruder]

On many past occasions, an increase in the price of oil has had immediate impact at the pump, usually within hours.

[Renegade Rumble]

The thing is the price of gasoline on the market is not rising alone side oil prices.  It is like 198 cents still.  This makes no sense what so ever since gasoline inventories are at an all time low.

[MiccyNarc]

The price of oil just touched $79.00.

So much for the old record.

Will we see $80 TODAY??

Holy shit. 

[bkwillia]

Gasoline will follow, soon.  A lot of traders were hoping to short the gasoline market.  They are going to be covering big time.

[Chip Haynes]

Oil bid prices have backed off a bit from touching $79.00 earlier this morning, so we'll have to wait and see what the afternoon brings. From what little I've seen of how it goes through the day, we may see a sort of afternoon spike, followed by a certain amount of settling before the exchange closes. The closing number seems to carry more weight than any mid-day spike.

These, as I understand it, are bids on crude oil delivered next month (October). So if these prices stay high, we'll see a rise in gasoline prices after this oil is delivered, refined and shipped to the gas stations some time after that.

Merry Christmas.

[GreenNeck]

Just reached 79.60 a few minutes ago.
Won't be surprised if we hit 80 today.

And they're running out of excuses to justify the high price.

There is no new trouble in Nigeria.
No big hurricanes threatening th GOM.
Hugo Chavez and Iran's Amadinejad didn't say anything stupid lately.
The Iraq situation is improving, according to TPTB.
Driving season in US is over.

I would like to hear what Danny Yergin of CERA has to say about that, for those who don't know, he predicted oil would be at 38$ this year.

[Chip Haynes]

Per liter, maybe.

 

[BlueOwl]

"Despite setting a new price record of $79.89 Wednesday, oil is still well below inflation-adjusted highs above $101 a barrel hit in early 1980."

From a Yahoo article.

[Chip Haynes]

Fear not, BlueOwl, we're headed that way.

[suburban_junkscape]

Yea and in 1980 we imported way less and drove way less and consumed way less oil, and much of the inflation was caused by rising oil prices themselves. And don't forget we're coming off an inflation adjusted multi-decade low of $11 in 1998.

[Chip Haynes]

According to this news link, oil did hit $80 today:

http://today.reuters.com/news/articlenews.aspx?type=businessNews&storyid=2007-09-12T181432Z_01_SP57154_RTRUKOC_0_US-MARKETS-OIL.xml&src=rss&rpc=23&sp=true

I blinked. I missed it. Maybe it will do it again tomorrow.

 

[GreenNeck]

Price indeed just hit 80.08$ a few minutes ago. For a 'live' update:

http://www.commoditytrader.net/

It then retreated to 79.75.

Yes, it is still lower, in constant dollars, than its 1980 price. You'll recall that price hike was caused by the sudden removal of 6 mbpd of Iranian production. back then, other producers were able to ramp up supply to replace that and in time the price receded.

Now imagine what would happen if 6 mbpd were suddenly removed (not far fetched; a US attack on Iran could well result in just that). Who has that production extra capacity? Nobody. That 101$ record would be pulverized in no time at all.

[Chip Haynes]

Yeah, if it's jumping like this with not very much going on to prompt it, I can imagine what insanity we might witness if something were to actually happen.

Whoosh!

 

[feelingweird]

JUST REMEMBER THAT THE DOLLAR IS TANKING TODAY!!!


Most of this runup is due to the fact that it take MORE USD to buy that oil. And part of it obviously is because the traders know that 500k extra barrels from OPEC was a cruel joke, seeing as that they are already pumping 1000000 over their stated limits..


But don't forget how the USD plays into all of this.

Robert NW Ohio