CNN: Crude touches another record, breaks $65

[DeepModem Mom]

Crude touches another record, breaks $65
Oil rallies despite EIA report that shows crude and distillate inventories up more than expected.
August 10, 2005: 6:52 PM EDT


NEW YORK (CNN/Money) - Oil prices gained nearly $2 Wednesday to touch another record high in today's dollars, recovering from an earlier decline after a government report said crude supplies had climbed more than expected.

U.S. light, sweet crude for September delivery surged $1.83 to settle at $64.90 a barrel, easing off a fresh record-trading high of $65.05 touched during afternoon trading.

Crude prices initially fell as low as $62.91 early in the session after the Energy Information Administration released its weekly supply report.

But traders quickly turned their attention back to geopolitics. Fadel Gheit, a senior energy analyst with Oppenheimer, said the rising tensions between Iran and the United States over the use of nuclear facilities is definitely one factor in Wednesday's spike in oil prices.

"The fear factor is definitely coming back to the floor here," said Gheit, referring to the concern over the possibility of the United States using force against the Middle East oil producer. "If that coincides with a hurricane, cold weather or a miscalculation on our part, then we are really up for much higher prices."...


http://money.cnn.com/2005/08/10/markets/oil/index.htm?cnn=yes

[Bluebear]

1. Woo hoo! USA USA! We're setting more records!

[EVDebs]

2. Goldman Sachs speculated that $105 / bbl is a possibility

Which means a gallon of gas at around $5. Just something to think about.

[BootinUp]

3. Well

That would finish the neocon movement if it happened. Maybe it would be worth it.

[natrat]

5. ah yes but just in time to further bloat big oil's coffers

[VegasWolf]

4. Way to go Bush!!!! U Da Man!!! nt

[puerco-bellies]

6. I believe that crude will meander up-to $70.00 by Xmas the next Gouge..

Will be in the Natural Gas markets. Natural gas tends to parallel the cost of crude, both up and down. The normal gap in prices is out of balance and I'm moving my clients who still have Heating oil calls to liquidate at very good profits and enter the Natural Gas markets.

Very risky, but if natural gas does what every other sector of the energy markets did and hits new highs, the $12,000 positions I've been buying the last couple of days will be worth in the neighborhood of $30,000+ in about 90 days..

[cliss]

7. That's an astonishing rise, P.

But it does not surprise me. I've read that we can expect oil to be at $100.00 per barrel by September. We'll see. That's only a few weeks away.

I did read that futures investors were "trying to feel the market" meaning, they were wanting to see how far up they could push the price before repercussions started to happen. There is enormous pressure to test the market's elasticity of demand.

And it IS amazing, if you think about it. The price of gas just keeps going up, and people are paying & paying at the pump. EVERY person in my family has a new car, and I'm not talking Prius here. I'm talking SUV, Big-ass truck, a 100-foot 5th wheel trailer.

Just unbelievable.

Thanks as always for cool insider info.

[puerco-bellies]

9. Dear God don't use the insxxer word..

Traders/investors are not trying to push any market. For every say $60.00 call (betting prices are going up) position, someone wrote that $60.00 call position (he was betting that the price would not get that high.

To write a call is to enter in to a futures contract with possibly infinite down side. No matter how high that crude goes the writer has to cover that cost.

Just think of it. I just offset some $54.00 crude calls, when crude was trading at just over $61.00. The difference of $7.00 dollars is the profit that my clients who bought those call made. Now multiply the $7.00 by the number of crude barrels per contract 1,000 and the writer has to cover the 7,000 to offset each of the calls he wrote.

Now say if Bunnypants decided to get those evildoer Iranians and they in-turn blasted a supertanker in the Straights of Hormuz, effectively block it for an indeterminable amount of time, crude could conceivably blow pass the $200bbl mark in a matter of days. All those poor bastards that wrote crude calls would be ruined, along with the exchanges, and just about everyone on the planet for that matter. For every action there is an equal reaction, for every buyer there is a seller. There is always counter price pressure. I don't see the markets as suspicious and rapacious. I see them in kind of a yin and yang light. A most beautiful light if you ask me.

[cliss]

10. Very nice, and I agree.

In my Econ classes, they taught us that traders are actually "market stabilizers", meaning they are like a force which stabilizes future uncertainty, versus current prices.

Sometimes I get irritated with the sentiment that "they're out to get us". I never see it that way. I see it as nothing more than a "Cosmic Buy and Sell" Marketplace.

Plus, I'm getting my Series 7 license, so I'm incredibly interested in all this.:smoke:

[puerco-bellies]

11. Series 7!?! Hssssssss Evildoer! Evildoer!!!!

LOL, My colleagues and I hold Series 3's

[EVDebs]

13. Hey stock guys, Check out Ovonic.com the solar panel company

They've declared they will set up shop in Michigan, replete with soon to be unemployed auto workers. The company was featured on PBS's Nova Science series with Alan Alda btw and it's run by the scientist Stanford R. Ovshinsky (United Solar Ovonic's CEO).

Another one to look into is Nanosolar in the SF Bay area.

[Catch22Dem]

8. High time for me to get a scooter or motorcycle.

Actually, it's been time for years, but the wife is opposed. I put her on notice though. $100/barrel and it's a done deal. My dad just bought one a couple of months ago.

[wildcat78]

12. Budget for $3 a gallon gas

That's what was on the news.

I've already cut back on my cable tv - pulled the premium channels. Let's see...what's next? No more eating out. What else? Forget about that vacation.

So, I'd sell restaurant stocks if I was holding them and buy Lowe's or Home Depot.