Aces High Bulletin Board
General Forums => The O' Club => Topic started by: rpm on September 22, 2008, 06:06:21 PM
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http://www.marketwatch.com/news/story/oils-16-gain-makes-history/story.aspx?guid=%7BACB659AB-D073-4DC1-9D68-C275ADBDA74B%7D&dist=msr_1 (http://www.marketwatch.com/news/story/oils-16-gain-makes-history/story.aspx?guid=%7BACB659AB-D073-4DC1-9D68-C275ADBDA74B%7D&dist=msr_1)
On Monday, a steep drop in the U.S. dollar, assumptions that the government rescue plan will help improve the economy and boost oil demand as well as short-covering related to the expiration of the October crude contract on Nymex all combined to pull oil prices to their highest intraday level in two months.
Oil's rally was "a mixture of short covering and the growing realization that the Fed [especially in an election year] is willing to be the ultimate backstop to the economy," said Neal Ryan, a managing partner at Ryan Oil & Gas Partners.
"Throw in a worsening supply/demand dynamic on top of it and we're off to the races," he said.
It all just "underscores that energy is the only place to expect outsized profits these days and the money is flocking into that market," he said.
Glad I decided not to buy that new truck just yet. The price of fuel is going to go thru the roof... again.
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http://www.marketwatch.com/news/story/oils-16-gain-makes-history/story.aspx?guid=%7BACB659AB-D073-4DC1-9D68-C275ADBDA74B%7D&dist=msr_1 (http://www.marketwatch.com/news/story/oils-16-gain-makes-history/story.aspx?guid=%7BACB659AB-D073-4DC1-9D68-C275ADBDA74B%7D&dist=msr_1)Glad I decided not to buy that new truck just yet. The price of fuel is going to go thru the roof... again.
doubtful
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its already over 3 times what it should be
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http://www.marketwatch.com/news/story/oils-16-gain-makes-history/story.aspx?guid=%7BACB659AB-D073-4DC1-9D68-C275ADBDA74B%7D&dist=msr_1 (http://www.marketwatch.com/news/story/oils-16-gain-makes-history/story.aspx?guid=%7BACB659AB-D073-4DC1-9D68-C275ADBDA74B%7D&dist=msr_1)Glad I decided not to buy that new truck just yet. The price of fuel is going to go thru the roof... again.
I think that what you're really gonna see out of this is some badly burned speculators, RPM. It will take a little while, but eventually the collapse will be felt by China, and Europe. When the market for Chinese goods' in the U.S. slows down (because IMO consumers will start to save money, or won't have any TO spend) the demand for chinese goods will decrease, and with it, chinese production, and finally, chinese consumption. And then, oil demand (and most likely prices) will start to fall at an accelerated rate.
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Your hypothesis may be correct. But, it will take time for it to play out.
During that time fuel will continue to go up.
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I just bought a new car....gets better mileage than my mid-sized SUV and runs way better. It uses premium however. I hope Oil comes down....new car or not it's affecting more and more everyday people more and more.