Tag: crude oil

Oil? Economy? No, it’s Maxine Waters Watch! – 02/13/09 (UPDATED)

A new low amongst lows, but who gives a crap

Yesterday the March ’09 contract hit a new low of $33.55, besting the pre-Christmas low of $35.18 for February delivery.

March '09 Crude Oil

Few words from the media on this – they are too busy making hay of some easily misinterpreted somewhat odd batshit crazy questions fired at bank CEOs the other day.

While prices at the pump are a little slow to reflect the ever downward slide, it’s smart to keep in mind that this one component of cost of living touches virtually everything. And it’s my view that this ‘chapter 2’ of the summer rally is the sole reason why Americans don’t quite see the economy falling headfirst into the abyss (at least just yet). If the wholesale printing of monopoly money by ‘our saviors’ forces oil producing countries to turn off the pumps, it’s watch out below.

Editor’s note: As oil rallied over the summer, Congresswoman Maxine Waters was screaming for the nationalization of energy companies. No word from Ms. Waters on how that move is progressing, but Congress has crammed billions down the throats of more than a few banks that probably didn’t need it, and Ms. Waters is off her lithium once again.

Would someone please make a run on ‘meet your mate locally’ dating service lawn signs and ‘my kid is an honor roll student’ bumper stickers? Maxine Waters can hold a few quick hearings with those entrepreneurs, and subsequently nationalize those industries. Then, whomever is left in charge at Congressional Kiddie Club while Nancy Pelosi is sitting on the beach with the pope can maybe get a few issues addressed, and we can be on our way to recovery.

UPDATE: The media finally catches wind of the issue. The fact that gas isn’t plummeting too is pricing disparity between the quotes above and Brent Sea, combined with the fact that refineries have taken a break. But I wouldn’t hold my breath on gas hitting $2.50 – gasoline futures are catching on to the crude mentality.

Oil Watch – 1/14/08 (UPDATED)

Yesterday’s close on the near term contract was $38.60, still a smidgen away from the pre-Christmas low of $35.13.

February '09 Crude

This weekend I was hearing rumblings regarding gas prices heading back up, although I haven’t personally seen much difference since I last filled up. There’s a price in which it doesn’t pay to explore – a price that’s already being broken (hence so few words lately about opening up the continental shelf and ANWR). But, there’s also a price in which it won’t make much sense to pump anymore.

What’s that price, and what will the equilibrium point be thereafter?

UPDATE: 1/15 – Doesn’t look like anyone has to worry about $35 being a bottom, since a new low of $34.65 was hit this morning.

Oil Prices: Expiring

In more ways than one

Jan ’09 crude oil futures expire today, so you can expect a bit of volatility. Nevertheless, a low of $33.44 is more exemplary of the market price itself expiring…

Less than a month ago the same contract was trading in the high $40’s – at a midday price of $35.29, crude is now off 76% from it’s summer highs. Further, the price for delivery nine years hence is but half of what the near term was last July! All this in the midst of rising gasoline inventories, and despite OPEC’s promise to cut production by a few million barrels a day. When’s the last time oil spiked lower on a big production cut?

The holidays may seem a bit a dreary this year, but it could have easily been a whole lot worse. The bursting of this bubble is the reason for a few less lumps of coal in the stockings.

Data points and chart compliments of Barchart.

Crude oil off 67%

The Jan ’09 contract hit a high of $148.35 on July 11th. Just quoted at $48.60, it’s making new lows everyday.


Love thy Barchart

Over the summer the media was SCREAMING about high gas prices, and auto dealers were flooded with oversized trade-ins at rock bottom prices. Oil executives were marched into Congress at gunpoint to explain.

Call it an oil bubble, or the Yaris-Mini-Smart-Rio-Fit-Elantra-Aveo-Versa-SX4-Astra bubble. Either way, the media is now decidedly mum.

December Crude: Pretty Picture

The one shining light in a bleak consumer world:

december-crude

At a 13-month low, I guess it’s only pretty if you’re NOT in the oil business. And combined with waning demand for plasma TVs, the US will probably be seeing a shrinking trade deficit too.

Testy Moments in Fly Fishing

Yes Drill Sergeant!

One Mercury RS2, color gray, size 20:

mercury-rs2

A paltry $1.50.

A half tank of gas for trip to favorite fishing spot (in the midst of the greatest crude oil bull run in history):

july-crude

A modest $40.

The look on Australian expatriate and Microsoft DynamicsAX pre-sales wunderkind Craig Berg’s face after catching his first trout:

an-australians-first-trout

Priceless.

This guy bought fishing gear on a whim, and had used it precisely once. I decided Saturday would be a good day to really give him hell – he spent most of the day trying to drown out my incessant badgering. If he snagged his rig, I pounded him to walk upstream to save it. When he flopped a piss poor cast, I drilled on the importance of line speed and keeping an eye on the target instead of the line on it’s way back behind. And when he asked for help changing flies, I extorted compensation out of him in the form of case after case of light beer.

Near day’s end, he hadn’t yet put a fish in his net but assuredly was pretty fed up with my hollering. Nevertheless I persisted – on the walk back to the truck I decided to give him a lesson in “pocket picking.” We discussed identifying holding water, how to approach and cast into gin-clear shallows, and keeping an eye out for subtle twitches in the indicator.

Craig put it all together on his last attempt of the day – a perfect cast to the inside edge of some still water behind a two foot wide rock, taking up the slack as the indicator drifted nearer, and a stellar downstream hook set.

His wife exclaimed “awesome” when she saw the picture. I’ll just say “congratulations”… for graduating from trout fishing boot camp!