Tag: supply

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.

Are We in the Peak of an Oil Bubble?

[singlepic id=403 w=240 h=178 float=left]PhysOrg does a good job of convincing, at least for the short to intermediate term.

Since 2003, worldwide oil prices have quadrupled. According to a new study, the price of oil is rising at a faster-than-exponential rate, and cannot be sustained. In other words, we’re in the midst of an oil bubble, say researchers Didier Sornette and Ryan Woodard of ETH Zurich in Switzerland and Wei-Xing Zhou of the East China University of Science and Technology in Shanghai, China.

Certainly goes against the previous note on the subject.

UPDATE: Gas consumption is dropping rapidly – high prices are the cure for high prices. When will the commodities markets come unhinged?