Tag: oil prices

Mid-Afternoon Holiday Reading

Like a linkfest link barrage, only post-nap

  • George Soros says it’s an oil bubble; he could have been nice enough to comment here, instead of going straight to the mainstream media. Still, speculation is rampant.
  • Jerome Kerviel didn’t act alone? Once again, no surprise here.
  • Giving away your product, while praying, should not be part of your business plan’s executive summary. If that’s your strategy, then bury the praying part in notes to the projections (nobody ever looks at those).

It’s cloudy/gloomy out…good weather for more napping.

UPDATE: If you decided to sleep too, there’s now more on the oil speculation bit here.

Oil’s No Bubble

Per Forbes:

A new record $130 pales in comparison to long-term futures prices.

Actually, long-term futures prices aren’t all that scary, at least this moment (129 cash versus 142 for Dec. ’16). Crimminy…cash delivery could hit 142 next week!

Is it a bubble?

UPDATE: “It could be up ten or down ten short term

Today’s crude oil craziness

Just a summary of nuttiness

  • Congress is nearing a quest to sue oil producing countries over prices. Even if they won such a lawsuit, who would determine the damages, and who would enforce the judgement? Is the Justice Department going to say “pay up, or you can’t export your oil to us anymore”?
  • It’s time to lay down further regulation of the commodities markets. Despite skyrocketing global demand (and blatant stockpiling on China’s part in advance of the Olympics), the government still wants to blame everything on speculators. Forget never ending trade deficits, soaring national debt, and a plummeting dollar…it’s time to further regulate the exchange of futures contracts by Joe Trader In The Bathrobe.

What is going to happen when and if this bubble bursts?

UPDATE: Revisting peak oil (seen the chart before, and I’d recommend downloading and looking at it on a big screen).

UPDATE 2: More blaming the traders.

UPDATE 3: Hoarding may be reality.

Crude Oil Prices 1861 – 2008

Cool graph, showing price in nominal and inflation adjusted (2008 dollar) terms.

And…it looks like a bubble.

More Fed Opinions

The Economist calls the latest move desperation. With only a week to go until the next meeting, a 75 bip cut might make an investor think the Fed knows plenty they don’t.

UPDATE: It’s funny that oil for March delivery had punched 7-week lows when the Fed made the announcement – I’m not sure how long that will last now. You’d almost think the Fed wants $5 a gallon gas.

Energy probe may yield few answers

Senator Charles Shumer (D-NY) is calling for a probe on purported gasoline price fixing.

“The bottom line is they are producing at 85 percent capacity when they should be producing over 90 percent. Are they scaling back production? Only by subpoenaing the companies and looking in their books will we get that answer.”

I wonder what anyone is going to get from a pile of corporate books and records, other than smoke and mirrors. Chances are, even if you get straight talk, it isn’t going to be of much help.

You want to find answers? Look here instead. If you are lazy, let me clue you in – all you are going to find is free markets at work. You want a 400 horsepower V-8 in that 7,000 pound vehicle that you drive 100 miles round trip to work each day, back and forth from your sprawling suburban home?

Well then. You are going to have to pay the price.

Getting bilked? What did you expect?

The Daily Kos reports that the GOP is getting a little nervous about all the oil companies reporting massive profits in the wake of skyrocketing energy prices. As if the Republicans didn’t have enough problems to deal with, now everyone will start putting two and two together, and presuming the Iraq War was all about lining oil company pockets.

What did they expect?
(more…)