Oil $69 per barrel!

[red-beard]

How low will it go? Trump predicted $20 barrel.

[Buckterrier]

Thought this was all supply & demand? Did we suddenly find oil in Wyoming, Utah, Arkansas, Ct.?? Or maybe the demand just went down.

[svandamme]

Originally Posted by Buckterrier

Thought this was all supply & demand? Did we suddenly find oil in Wyoming, Utah, Arkansas, Ct.?? Or maybe the demand just went down.

in case you don't read the news

demand did just go down...
credit crisis = folks saving cash instead of living it up like it's 1999, companies going bust, no new startups due to no credit lines, etc etc etc.

[David]

Or maybe all the speculative money was pulled from the commodities market.

[red-beard]

No question, it is a combination of both.

But how low will it go?

[Zef]

This drop is a big price to pay when we see where we are now.

[KFC911]

Originally Posted by 125shifter

or maybe all the speculative money was pulled from the commodities market.

+1

[Porsche-O-Phile]

Anyone looking at refinery stocks? The market is pretty insane right now, but just wondering if anyone thinks there's a good play to be made while crude is on the way down or whether the overall economy would offset any potential gains...

[Macroni]

Speculators

[onewhippedpuppy]

Originally Posted by 125shifter

Or maybe all the speculative money was pulled from the commodities market.

+2 My bet is if it goes much lower, OPEC starts cutting supply.

[Shaun @ Tru6]

Speculators

[legion]

IIRC, OPEC moved their "emergency" meeting from November to this Friday.

We'll see if the Bears truly run the oil markets right now and shrug off the news...

[svandamme]

Originally Posted by onewhippedpuppy

+2 My bet is if it goes much lower, OPEC starts cutting supply.

that ain't a bet , OPEC already said they would do so

That's like "my bet is, tomorrow, somewhere in the morning, the sun will come up"

[Porsche-O-Phile]

My impression of past OPEC threats to cut production is that it's been all bluster and little substance. Why on earth would a constituent country cut its own production for the benefit of its neighbors when it could keep production high, gain market share, pad its own profits, etc.?

This is one of the reasons collusion typically does not work. Anyone have any historical information/data on how often these kinds of threats are actually followed? The only time I can think of OPEC really following through on its threats was in the 1970s gas crunch and that was mostly a punitive action by all Arab countries against the west and the U.S. for support of Israel...

[Macroni]

Out of control speculators.............

[BRPORSCHE]

OPEC announced that they are going to cut production yesterday.

Iran and Venezuela could be making a lot more money at $140 barrel compared to $70 barrel. The article did say, at the very bottom mind you. That Saudi Arabia probably wouldnt listen OPEC, so the whole issue is irrelevent.

[Aurel]

It looks to me like being in a recession will hurt the oil revenue of americas "ennemies" such as Russia, Venezuela and Iran. I am wondering, maybe there is a strategy in this whole financial crisis, a plan to bankrupt ur ennemies just like Reagan did with Russia during the cold war. I sometimes love to hope that those in charge have a master plan like that, where the winning strategy only appears years after its execution. But then again, that would assume those in charge know what they are doing .

Aurel

[M.D. Holloway]

This is good and bad for us - if it goes lower than $75, a bunch of our accounts in West Tejas will sit idle but our base stock should decrease - its a no win no lose sitch - what do the kids call that? A zero sum?

[Dottore]

Originally Posted by Aurel

It looks to me like being in a recession will hurt the oil revenue of americas "ennemies" such as Russia, Venezuela and Iran. I am wondering, maybe there is a strategy in this whole financial crisis, a plan to bankrupt ur ennemies just like Reagan did with Russia during the cold war. I sometimes love to hope that those in charge have a master plan like that, where the winning strategy only appears years after its execution. But then again, that would assume those in charge know what they are doing .

Aurel

Problem with this theory is if you try to bankrupt China, they'll just call in your bonds and then you'll be up the proverbial creek without a paddle.

[Dottore]

Originally Posted by Zef

This drop is a big price to pay when we see where we are now.

...And sadly, it's the decline in the oil price that pulling the C$ into the toilet. Or so my banker tells me. It's all connected.