Oil Price Watch

[Chip Haynes]

WELL, I'M AWAKE NOW!

Bloomberg has oil at $87.50 first thing this morning. Obviously, even though the east copast US market closes at 4 pm eastern US time, investors didn't go home and take a nap. Other investment houses were open around the world, around the clock, and oil went up, up, up. What's that? Five bucks in two days? If this were to keep up (and I doubt anyone seriously expects that), we'd see $100 oil by Halloween.

Of course, if the Turks move in to Iraq, we just might.

Then again, we saw the last big run up in oil prices last month about this time, didn't we? Something to do with deadlines for bids on the following month's deliveries. I'm going to be real subtle here: Look for oil to have a strong week through the 19th.

[DuckHunter]

This is really getting trippy now...

http://www.reuters.com/article/hotStocksNews/idUSSP10407020071016

[REDREAMER]

well that's a bit of a radical good morning.

GULP.

[Ovis Suburbanus]

CNN's American Morning actually said the TRUTH this morning. They said the reason for the high price of oil is that some oil producing countries CANNOT INCREASE PRODUCTION or are experience a DECLINE IN PRODUCTION.

The shit is indeed hitting the fan...maybe.

[lady-t]

looks like i will be filling up my tanks today, so much for ordering more freeze dried stuff.

AND THE PLOT THICKENS  !!!!  

[Bionic_Oil_Gut]

Well you know what they say, it never rains it pours!

[Chip Haynes]

The tropical version: It's like bananas- it comes in bunches.

It's going to be very interesting to see what Turkey does- and how that impacts oil prices and supplies world-wide.

It's going to be an interesting week.

[suburban_junkscape]

$88 oil + burst housing bubble doesn't look good for 2008. It usually takes a few months for these things to work there way into the economy. It's called the reverse multiplier effect. So the bad stuff we're reading about now will really effect us come April or so.

When LATOC first came online in early 2004 oil was in the mid 30's and we thought that was shocking. Despite over 4 years of knowing about Peak Oil I will be absolutely stunned to see $100 a barrel.

[Chip Haynes]

"...I will be absolutely stunned to see $100 a barrel."

I won't. You know it has to happen as supplies dry up- and they ARE drying up. Throw in a bit of Turkish Delight and there's your Benjie a Barrel.

We might see it by New Year's.

 

[suburban_junkscape]

Every $1 up on oil prices feels like a nail in my coffin. I look at $100 as "I lose my job." $200 as "I lose my life." I think at $200 we start getting into the potential for WWIII. Nuclear war. Scary stuff. Let's hope this is all just speculation and oil prices head back down.

[Chip Haynes]

So what do you do that's so critically tied to the price of oil?

I would think anything in the airline industry would be risky now, as would anything to do with large motor yachts or big RVs.

[suburban_junkscape]

So what do you do that's so critically tied to the price of oil?

Nothing much, just eating, drinking water, going to work. It's one thing to read about Peak Oil and it's another thing when you actually witness it happening.

[GreenNeck]

$88 oil + burst housing bubble doesn't look good for 2008. It usually takes a few months for these things to work there way into the economy. It's called the reverse multiplier effect. So the bad stuff we're reading about now will really effect us come April or so.

When LATOC first came online in early 2004 oil was in the mid 30's and we thought that was shocking. Despite over 4 years of knowing about Peak Oil I will be absolutely stunned to see $100 a barrel.

Well, this is no longer a stunning thought.

Yesterday I was listening to the radio, CFTR 680 News in Toronto. During business news, commenting on the oil price, they presented an economist with one of the big banks (can't recall which one) and asked him point-blank "How soon will we see 100$ oil?" and the guy replied just matter-of-factly "in the next 12 months". Then he added "Never mind wars and hurricanes, the main cause of the price hike is supply and demand. Demand goes up but supplies don't."

Can't be plainer than that. And CFTR is as much MSM as any.

[bkwillia]

I cheer every time oil goes up.   I have been waiting for this to happen for as long as I can remember.  Remember, there is no shortage in storage right now.  The sooner oil becomes expensive, the more time we have to adapt.  Cheap oil is the most dangerous thing that could happen right now.  Ignorance is not bliss when the global economy is at stake.

[Chip Haynes]

By the time this all settles out, there will be no global economy.

Ignorance may well be bliss, but ignorance of our future is madness.