Comments on: Oil Prices Rise

By: RC4B

RC4B — Thu, 08 Jan 2009 03:10:05 +0000

What should worry you is that oil producers world wide are already cutting back capital investment, and in many cases staff. The pendulum swing from $140 per barrel oil to $40 per barrel oil is huge, and affects long term investments that are the nature of the energy business. This puts huge pressure on attempts to move consumers to renewable energy, while at the same time prepping the oil industry to be delay investment that will mitigate high prices by increasing supply. Will we see another wild price swing when the world finally starts to move out of recession?

By: markm

markm — Thu, 08 Jan 2009 01:11:39 +0000

So you start worrying about oil prices hitting a "5 week high" at $49.09 and we immediately see prices drop to $42.63. A nice 13% drop. Can we suggest some other topics for you to worry about?

But...do continue to worry about oil at the same time please.

By: Drew

Drew — Wed, 07 Jan 2009 22:47:58 +0000

In back to back sentences Mr Dement observes that restrictions on OPEC supply increase prices......but then scolds anyone with the audacity to suggest that pursuing increases in alternative supplies is a sensible approach to offsetting that price pressure or the OPEC monopoly.

Now THAT's entertainment.

By: yetanotherjohn

yetanotherjohn — Wed, 07 Jan 2009 22:27:53 +0000

Oil prices tumble below $43 on oil reserve report US oil inventories continue to rise amid falling demand, sending oil below $43 per barrel So you start worrying about oil prices hitting a "5 week high" at $49.09 and we immediately see prices drop to $42.63. A nice 13% drop. Can we suggest some other topics for you to worry about?

By: Steve Plunk

Steve Plunk — Wed, 07 Jan 2009 21:25:24 +0000

With higher domestic inventories reported oil has fallen today better than 10%. I expect it to be down more as traders liquidate positions. Let's watch and see. This isn't fun and it surely dampens consumer confidence which slows the recovery.

By: Steve Plunk

Steve Plunk — Wed, 07 Jan 2009 16:28:53 +0000

Rick, I'm curious why expanded exploration and development proponents would be clueless.

I also wondering what effect the storage of oil in tankers is having on the market. We've accepted the role of speculation in the sudden rise last spring and summer and now it seems speculators are parking their oil offshore and waiting for prices to rise before delivery. There are 25 supertankers off Europe and traders are looking to lease another 10. This represents about a five day supply for Europe and could clearly impact prices. We also know there are tankers being used to store Iranian oil and tankers off the gulf coast storing oil.

This looks to me like market manipulation by those with the resources to get it done. there's no doubt OPEC's supply cut will have an effect but we still are feeling the sting from speculators who game the system.

By: Rick DeMent

Rick DeMent — Wed, 07 Jan 2009 14:44:26 +0000

For some reason oil prices seem to be on my mind today.

For some reason? it's because OPEC decided to twirl back the tap. They set prices. It is also a grand reminder of the utter cluelessness of the "drill here, drill now" meme. At least as far as lowering gas prices go.