Oil Prices Fall on Good Supply News

[tabs]

Now see there is GOOD news out there, and not all is doom and Gloom.

Anyway because of a Good supply report oil prices have fallen...U boyz aren't retarded enough not to be able to find the news story if U wana read it. So I not gona bother with the details.

Ohh and Britany Spears says shes gona have her baby in Nambia just like Angela Jolie did...isn't that nice.

[Moneyguy1]

better that the double entendres?

tabby...All change is, by definition transitional, just like the gloating a few weeks ago "How about that Dow?".

Ebb and flow.....ebb and flow......

[nostatic]

Originally posted by Moneyguy1


Ebb and flow.....ebb and flow......

I hear that's what Brittney's going to name the new kid. Kinda like Eminem. Only different. Ebbandflow. Or maybe its Flo and Eddie. Or the Courtship of Eddie's Father. Or Father knows best. Or best buy. Or buy american. Or american pie. Mmmmm.....floor pie.

[speeder]

Well, they've managed to keep retail prices of gasoline high for long enough so that $3.00 @ gallon for regular will seem reasonable to Californians now. ******* brilliant they are.

It is the riddle, "How do you double the price of a staple commodity w/o causing rioting?"

Easy. Triple the price first for a short while, then dial it back to ~double and they'll thank you for the "break". The supply of gas and diesel hasn't changed one drop. I haven't seen one empty or closed fuel station, (or read about one anywhere), and traffic is as bad as ever.

It's a lesson learned learned 100 years ago and probably taught at business schools, call it the "Wonder Bread theory". You bleach the schit out of a loaf of bread and remove all nutrition from it, then put some of the nutrients back in artificially and call it "enriched". It is like if I rob you on the street and give you back your empty wallet and bus fare. I "enriched" you.

"Thank you sir, may I have another?"

[Aurel]

Wayne had a thread not long ago about the oil prices predicted to go back down because they were artificially inflated. Guess he was right. I wanna become a CEO someday so I can predict stuff too

Aurel

[pmajka]

only 1 gaS station has dropped price in my area and they were .20 cheaper than anyone else before. from 2.79 to 2.71 for regular...

HESS on rt 422 in breks county pa.

[Icemaster]

Originally posted by nostatic
I hear that's what Brittney's going to name the new kid. Kinda like Eminem. Only different. Ebbandflow. Or maybe its Flo and Eddie. Or the Courtship of Eddie's Father. Or Father knows best. Or best buy. Or buy american. Or american pie. Mmmmm.....floor pie.

You forgot K-Mart, Blue-light, welcometoWalMart....

[tabs]

Wayne the Fed also raised the MARGIN rates for OIL and the Metals, that means the easy money has left the building so it is no longer as profitable to speculate on Oil futures. That is the real cause here.

[wrecktech]

Originally posted by speeder
It's a lesson learned learned 100 years ago and probably taught at business schools, call it the "Wonder Bread theory". You bleach the schit out of a loaf of bread and remove all nutrition from it, then put some of the nutrients back in artificially and call it "enriched".

Interesting thing about Wonder Bread, while in college I studied Psychology and one of the professors I was a student teacher for specialized in eating disorders. We had a group of rats in one study that we fed something that had bulk but no nutritional value. If we ran out we fed them wonder bread.

[jyl]

Originally posted by tabs
Wayne the Fed also raised the MARGIN rates for OIL and the Metals, that means the easy money has left the building so it is no longer as profitable to speculate on Oil futures. That is the real cause here.

tabs, can you point me to a link? I have been looking for this news and can't find it.

I had thought the margin requirements were set by each exchange although I guess the Fed could in turn be directing the exchanges.

I'm quite interested in this topic since if oil goes to $35/bbl in the next 2 years then why bother shorting the homebuilders, just do a pair trade short OSX and long NDX, or just short OSX.

But I'm not convinced enough - trying to get there.

[tabs]

Mother down in Tucson told me about the raising of the Margin rates. As I've said Greenspan is a friend of hers and one of the people who reported to him is a client of hers, so I guess she should know what she is talking about.

The Fed has been raising Short Term rates to TRY and cool the RE Market...which it has suceeded in doing.

Mother in Tucson has put me heavily into Big Cap Consumer Staples...on Thursday one of the Big Mutual Fund Managers said that the money is Transitioning into High Yield Bonds and Consumer Staple.

[jyl]

Okay, so one view would be that if oil falls to $35 in the near-ish future, then all the bearish structural factors we talk about will be irrelevant, for a period.

Who cares if houses are overpriced or the budget is in deficit? Consumers will have incremental spending money and boosted confidence, corporates will see rising gross margins, the Fed will have less concern over inflation, etc etc.

Stocks will rock, and you should dump your staples and me my NDX shorts and maybe even Jurgen his HGX shorts. Don't know how long that lasts, but long enough to pay attention.

Thoughts? Agree/not? I'm not sure if I agree, partly because I'm still not convinced oil goes to $35 . . . but interested in views.

[turbo6bar]

Oil is $69.75/barrel. I thought you guys said oil prices have fallen.

If oil comes down, then all commodities will mirror the fall. Interesting scenario. My initial impression is falling commodities will give the worldwide economy a nice, soft landing.
jurgen

[pwd72s]

Originally posted by nostatic
Or maybe its Flo and Eddie.

HOOT! A local girl, well, a girl no longer, was once married to one of the Turtles. She was a physical & mental wreck when she came back home. Small town values & big town music don't mix, do they? (edit) The sad thing is, Nan was a local beauty...and as it turned out, she'd have been much better off marrying a local bureaucrat. (Not that there's anything wrong with being a local bureaucrat. Definitely a better position in life than being a rock star.)

[fintstone]

Oil prices fallig?

Its Bush's fault!

[tabs]

There was a meeting of Seven or Eight Banks in May I think she said in NC, and at the Feds urging the Banks raised the rates.

[TyFenn]

There are other factors in determining the price of oil, if I'm not mistaken.

Keep in mind,

Nigeria hates us
Venezuela hates us
Iran hates us
Iraq....

Then there is hurricane season, which just begun.

If one of these situations are altered - look out. I think we'll see $80 oil before $35 oil, IMHO.

I don't think oil will EVER go below $50 a barrel again.

***DISCLAIMER*** My call on Copper was almost completely wrong. It did fall, almost 24 hours after I said it wouldn't.

Brokerage houses do set their own margin requirements. That was how Bill and Hillary Clinton turned $1,000 into $100,000 in something like 6 days. Some might remember that story.

Finally, the easy has definitely left the building.

Best Regards,