Oil prices...

[fuckin crazy]

When was the last time conflict wasn't in a oil rich  area?

I'm thinking it was March of 03

[SLCPUNK]

Watch for the Fed to cut rates again to save Bush's casino economy. When that happens, it will beat the American dollar down even more, and push crude up.

[fuckin crazy]

This whole fucking economy is a house of cards that is going to collapse soon. Europe and China are keeping it afloat for now, but soon their bills will come due, and the whole fucking mess will come down like an avalanche.

[AxlsMainMan]

Oil prices slide as the dollar extends its gains

Thursday, May 01, 2008

By JOHN WILEN, AP Business Writer


NEW YORK ?  Another jump in the dollar and the end of an oil workers' strike in Nigeria sent crude prices falling Thursday as speculators who drove crude futures to nearly $120 pulled out of the market. Retail gas prices, meanwhile, rose to a new record above $3.62 a gallon.

The dollar's rise against the euro and other currencies stripped away some of oil's appeal to investors who have been betting for months that the greenback would continue to falter. When the greenback gains ground, commodities such as oil lose their value as a hedge against inflation, prompting selling. Also, a stronger dollar makes oil more expensive to investors overseas.

As the dollar has strengthened this week, oil futures have dropped more than $7 from their highs to their lowest levels since April 14. On Thursday, light, sweet crude for June delivery fell 94 cents to settle at $112.52 a barrel on the New York Mercantile Exchange, after trading as low as $110.30. Meanwhile, the euro bought $1.5457 in afternoon trading, down from $1.5642 late Wednesday.

Meanwhile, a strike that cut production at an Exxon Mobil Corp. facility in Nigeria ended Thursday, giving investors another reason to sell. Oil prices jumped last week on word of the strike and a separate labor action in Scotland, which ended Tuesday. Nigeria is a major U.S. oil supplier.

Analysts caution that oil's swoon could be temporary. The dollar's protracted decline has been a major factor behind oil's rise from about $64 a year ago, and future dollar weakness could easily push crude futures above $120.

"It's all about the dollar," said James Cordier, president of Tampa, Fla., trading firms Liberty Trading Group and OptionSellers.com. "I don't think the dollar is going to stay strong."

Indeed, oil prices rebounded more than $2 from their lows late in Thursday's trading session after the dollar stopped gaining ground against the euro.

The dollar's recent gains have come on a view that the Federal Reserve's interest rate cutting campaign is nearing its end; lower interest rates tend to weaken the dollar. The Fed cut rates a quarter percentage point on Wednesday, and did not give a clear indication of its future plans. But with the benchmark federal funds rate at 2 percent, investors sense that the Fed can't cut rates much further.

"It's not going to be zero (percent), it's not going to be a half (percent)," Cordier said.

However, other nations' central banks are considering raising interest rates, actions that could further weaken the dollar, Cordier said. If that happens, or if there is a major supply disruption, crude prices could easily rise to $130 in June, he said, and that could push gas prices to $4 a gallon.

At the pump, the average national price of a gallon of regular gas rose 0.6 cent to a record $3.623 Thursday, according to a survey of stations by AAA and the Oil Price Information Service. Diesel prices inched 0.1 cent higher to a record $4.251 a gallon. Gas prices are already higher than $4 in many parts of the country, including in California and Hawaii.

Despite crude's recent declines, gas prices are likely to keep rising for a while. Crude's rapid rise over the past year has squeezed refinery profit margins; refiners must pay for the oil they refine into fuel, but have been unable to raise gas prices fast enough to keep up with crude. While oil prices are up about 73 percent in the last year, gas prices are only up 22 percent.

On Thursday, Exxon Mobil Corp. reported a first quarter profit of $10.9 billion, but missed analyst expectations. The company said significantly lower worldwide refining margins reduced earnings by about $1 billion in the quarter.

Analysts expect gas prices to peak within the next two months.

In other Nymex trading Thursday, June heating gasoline futures fell 2.81 cents to settle at $2.8782 a gallon, and June heating oil futures fell 4.03 cents to settle at $3.1177 a gallon. June natural gas futures fell 28.2 cents to settle at $10.561 per 1,000 cubic feet. The Energy Department said natural gas inventories rose by 86 billion cubic feet last week, more than many analysts had expected.

In London, June Brent crude futures fell 86 cents to settle at $110.50 a barrel on the ICE Futures exchange.

http://www.foxnews.com/wires/2008May01/0,4670,OilPrices,00.html

[SLCPUNK]

I'm going to guess the dollar rose because the Fed hinted that this would be their last cut.

We'll see.....

This whole fucking economy is a house of cards that is going to collapse soon. Europe and China are keeping it afloat for now, but soon their bills will come due, and the whole fucking mess will come down like an avalanche.

Not according to these guys.

According to them the economy is healthy, debt is good, a weak dollar is even better, and tension in oil rich areas don't drive up the price of crude. Of course, as soon as Obama is elected, they'll blame the weak dollar, economy, and price of gas on him.

[AxlsMainMan]

Oil price strikes 122 dollars for first time

7 hours ago

LONDON (AFP) ? Oil prices hit a record high 122 dollars on Tuesday as the market was driven by recent unrest in key producer Nigeria and a struggling US currency, traders said.

New York's main oil futures contract, light sweet crude for June delivery, hit the the historic peak in late afternoon European deals.

London's Brent North Sea crude also reached an all-time high of 120.41 dollars.

Both records beat high points set earlier in the day.

http://afp.google.com/article/ALeqM5gUh2AVKg51gB7RDltZXYU2dJWk5A

[Smoking Guns]

Oil price strikes 122 dollars for first time

7 hours ago

LONDON (AFP) ? Oil prices hit a record high 122 dollars on Tuesday as the market was driven by recent unrest in key producer Nigeria and a struggling US currency, traders said.

New York's main oil futures contract, light sweet crude for June delivery, hit the the historic peak in late afternoon European deals.

London's Brent North Sea crude also reached an all-time high of 120.41 dollars.

Both records beat high points set earlier in the day.

http://afp.google.com/article/ALeqM5gUh2AVKg51gB7RDltZXYU2dJWk5A

This shit shouldn't be on the "futures" market.  They are the ones driving this up from fear and not one fucking thing ever happened.  Supply still exceeds demand and the gas in our pump was made 18 months ago.  This shit is a fucking joke.

[leatherebel]

[AxlsMainMan]

Stocks head to lower open after inflation data

By JOE BEL BRUNO ? 34 minutes ago

NEW YORK (AP) ? Wall Street tilted toward a lower open on Tuesday after a government report showed inflation at the wholesale level rose more than forecast after stripping out food and fuel prices.

The Labor Department reported that wholesale inflation edged up by 0.2 percent in April following a 1.1 percent jump in March. Outside of food and energy, prices rose by a faster 0.4 percent ? double what analysts had expected.

Rising prices for gasoline and utilities prices are affecting both companies and consumers, and the government report shows price pressures are seeping into other areas. If those costs are passed on to the consumer, it could cause a pullback in spending that accounts for more than two-thirds of the U.S. economy.

Investors will also get a better idea about consumer spending with a number of earnings reports from some of the nation's biggest retailers. Home Depot Inc. reported that first-quarter profit fell 66 percent because of the continued housing slump. Staples Inc. said profit rose 1.5 percent during the quarter, and reaffirmed its outlook.

In addition, chain-store sales fell 0.4 percent during the week of May 17, down from 1 percent the previous week, according to the International Council of Shopping Centers and UBS Securities.

Dow Jones industrial average futures down 91, or 0.58 percent, to 12,954. Standard & Poor's 500 index futures shed 7.90, or 0.55 percent, to 1,422.00, and the Nasdaq 100 futures dropped 10.00, or 0.49 percent, to 2,015.75.

Bond prices edged lower. The yield on the benchmark 10-year Treasury note, which moves opposite its yield, rose to 3.84 percent from 3.83 percent late Monday.

The dollar was mixed against other major currencies.

Oil prices held steady after closing overnight above $127 for the first time on news that OPEC will not increase its output before its next meeting in September. A barrel of light sweet crude rose 40 cents to $127.45 in premarket trading on the New York Mercantile Exchange.

Federal Reserve Vice Chairman Donald Kohn will speak around 9 a.m. EDT about the economy in a speech in New Orleans. Meanwhile, the Federal Reserve Bank of Chicago issued a report that showed U.S. economic activity weakened further in April and reached its lowest level since the 2001 recession.

Banking stocks are set to open lower after Oppenheimer & Co. analyst Meredith Whitney said she expects the credit crisis to extend into 2009, and "perhaps beyond." She said firms like JPMorgan Chase & Co. and Citigroup Inc. have set aside $25 billion to cover losses, but might have to set aside about $170 billion by the end of next year.

Mortgage finance firm Fannie Mae will be in focus after Senate banking committee leaders late Monday announced they are close to a housing bill deal that would help prevent foreclosures. They also plan to change the way the government oversees both Fannie Mae and Freddie Mac.

Overseas, Japan's central bank kept interest rates steady Tuesday amid lingering worries about a global slowdown. Tokyo's Nikkei closed down 0.77 percent.

In Europe, London's FTSE dropped 1.49 percent, Frankfurt's DAX fell 0.99 percent and Paris' CAC 40 shed 1.17 percent.

http://ap.google.com/article/ALeqM5gHs5OM3gFG_DytQQZFbWfgPT08MAD90PCKG00

[Dr. Blutarsky]

Oil price strikes 122 dollars for first time

7 hours ago

LONDON (AFP) ? Oil prices hit a record high 122 dollars on Tuesday as the market was driven by recent unrest in key producer Nigeria and a struggling US currency, traders said.

New York's main oil futures contract, light sweet crude for June delivery, hit the the historic peak in late afternoon European deals.

London's Brent North Sea crude also reached an all-time high of 120.41 dollars.

Both records beat high points set earlier in the day.

http://afp.google.com/article/ALeqM5gUh2AVKg51gB7RDltZXYU2dJWk5A

This shit shouldn't be on the "futures" market.  They are the ones driving this up from fear and not one fucking thing ever happened.  Supply still exceeds demand and the gas in our pump was made 18 months ago.  This shit is a fucking joke.

We need more govt oversight on oil. No reason in hell it should be rising due to the circumstances that actually exist.

[Thorned Rose]

it's ridiculous.

3.62 here right now

[SLCPUNK]

We need more govt oversight on oil. No reason in hell it should be rising due to the circumstances that actually exist.

Interesting. So you want more government?

[pilferk]

We need more govt oversight on oil. No reason in hell it should be rising due to the circumstances that actually exist.

Interesting. So you want more government?

I found the comment interesting, too.

I wonder if he's for more government oversight of health care, too.

I seriously doubt it...but I wonder.....

[pilferk]

it's ridiculous.

3.62 here right now

I'll swap...we'ver hovering around $4 a gallon...some stations are RIGHT below it ($3.97) and some are just over ($4.04).

I'm putting almost $100 a week into my car, just to get back and forth to work.

July (when our "work at home" program should go into effect....2 days a week, at least) can't come soon enough.

[SLCPUNK]

Westshore area LAST WEEK:

[SLCPUNK]

By Tom Doggett 43 minutes ago

WASHINGTON (Reuters) - The House of Representatives overwhelmingly approved legislation on Tuesday allowing the Justice Department to sue OPEC members for limiting oil supplies and working together to set crude prices, but the White House threatened to veto the measure.

The bill would subject OPEC oil producers, including Saudi Arabia, Iran and Venezuela, to the same antitrust laws that U.S. companies must follow.

The measure passed in a 324-84 vote, a big enough margin to override a presidential veto.

The legislation also creates a Justice Department task force to aggressively investigate gasoline price gouging and energy market manipulation.

"This bill guarantees that oil prices will reflect supply and demand economic rules, instead of wildly speculative and perhaps illegal activities," said Democratic Rep. Steve Kagen of Wisconsin, who sponsored the legislation.

The lawmaker said Americans "are at the mercy" of OPEC for how much they pay for gasoline, which this week hit a record average of $3.79 a gallon.

The White House opposes the bill, saying that targeting OPEC investment in the United States as a source for damage awards "would likely spur retaliatory action against American interests in those countries and lead to a reduction in oil available to U.S. refiners."

The administration said less oil going to refineries would limit available gasoline supplies and raise fuel prices.

Foreign investment in U.S. oil infrastructure has declined in the last decade. But the state-owned oil companies of several OPEC nations are owners of U.S. refineries, and those investments could be affected if the legislation becomes law, said Arlington, Virginia-based FBR Capital Markets Corp.

The bill also requires the Government Accountability Office to carryout a study on the effects of prior oil company mergers on energy prices.

The Senate would still have to approve the House measure.

The Senate previously approved similar legislation as part of a broad energy bill. However, the OPEC-suing provision was removed after White House opposition in order to get the underlying energy legislation signed into law.

[Neemo]

Westshore area LAST WEEK:

in ontario canada its around $1.25 per litre for 87 octane which works out to about $4.73/gallon 

Mid Grade (89 Octane) is approx $1.30/Litre - $4.92/Gal
premium gas (91 Octane) is about $1.35/Litre - $5.11/Gal

East and West Coasts in Canada are even higher

the price you posted is about $1.10 per litre...we were there last summer

[Dr. Blutarsky]

We need more govt oversight on oil. No reason in hell it should be rising due to the circumstances that actually exist.

Interesting. So you want more government?

The system we have on how oil is priced is broken. It is not going to fix itself. Are the oil companies or speculators going to do anything about it? No, they are making record profits.

There is no doubt the record oil prices are putting a drag on our economy. No particular industry should deserve to make record profits at the country's expense.

I am generally against more government, and I am for for effective and efficient govt.  In a situation like this the govt should get involved.

[TAP]

We need more govt oversight on oil. No reason in hell it should be rising due to the circumstances that actually exist.

Interesting. So you want more government?

The system we have on how oil is priced is broken. It is not going to fix itself. Are the oil companies or speculators going to do anything about it? No, they are making record profits.

There is no doubt the record oil prices are putting a drag on our economy. No particular industry should deserve to make record profits at the country's expense.

I am generally against more government, and I am for for effective and efficient govt.  In a situation like this the govt should get involved.

Sounds like socialism to me.

[Dr. Blutarsky]

We need more govt oversight on oil. No reason in hell it should be rising due to the circumstances that actually exist.

Interesting. So you want more government?

The system we have on how oil is priced is broken. It is not going to fix itself. Are the oil companies or speculators going to do anything about it? No, they are making record profits.

There is no doubt the record oil prices are putting a drag on our economy. No particular industry should deserve to make record profits at the country's expense.

I am generally against more government, and I am for for effective and efficient govt.  In a situation like this the govt should get involved.

Sounds like socialism to me.

I see it more as govt getting involved in an  anti trust capacity.