Wednesday, Oct 17, 2007
Fancy a barrel'o hundred dollar oil for ya X'mas present, u'all?!
Yahoo News: Oil reverses course, hits new record
Oil prices surged to a new record of $89 a barrel Wednesday after Turkey's parliament authorized an incursion into northern Iraq in search of Kurdish rebels.
The vote overshadowed a U.S. government report that crude oil and gasoline inventories overall rose more than expected last week. But prices did draw some support from a 200,000 barrel decline in inventories at the closely-watched New York Mercantile Exchange delivery terminal in Cushing, Okla.
Light, sweet crude for November delivery rose $1.09 to $88.69 a barrel on the Nymex after rising to a record $89 earlier.
Posted by planning4acrash @ 09:50 PM (466 views) Add Comment
7 Comments
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1. alan said...
As the dollar declines, it buys less and less of those currencies which have not followed a downward path.
MMmnn... Where does this leave the £ , I wonder?
2. stillthinking said...
Maybe sterling and the dollar are two separate things. There are literally trillions of dollars out there waiting to come home, so the dollar will go down and the US will get inflation. This seems certain to me. I have no idea why a "dollar crash" is so slow. Seems to me that if you can guess that the dollar is valued much lower in the future then you would dump dollars immediately. Perhaps its because the major foreign national dollar holders are colluding.
The UK has no restrictions on asset sales, so unlike the US you can convert holding sterling to holding UK business/property/whatever, also I think we are a small baby and not so important. I don't believe our beloved provider city financial district requires any conversion to pounds before business.
I believe that the pound will go down because we don't supply any goods to foreign countries so why would they want pounds? Inflation is coming here so buying pounds is a temporary measure. Mervyn King looks good compared with Bernanke. I grew up in the UK so I don't believe that but I can imagine foreigners would after growing up on B&W wartime movies etc.
I also think that everything at the moment is pretend. I think the situation is really really bad, and that, in particular, the US banks(exposed to the US) are in deep trouble.
While inflation is growing in the UK, I really dislike the Mugabe inflation of 12 Billion printed notes for Northern Rock. The Asians are dumping the US currency as discretely as they can and we are certainly next.
I think that the UK will fail as a desirable place to live. This credit crunch,la la, will cause house prices to drop. I think that over the next 5 years a staggering number of young people are going to leave. Apparently 300 thousand do so every year now. This will be the killer for house prices in the end and you can say you read it here first. People are going to leave the UK. Even the US with a house price and a slumping currency is better than here and thats what will do us in.
3. stillthinking said...
in particular UK banks (exposed to the US)
4. planning4acrash said...
Stillthinking, the dollar is being kept artificially high because it suits the export led growth of China, et al. If China brings back its trillions, the Yuan will appreciate like a helium balloon and its exports will become super expensive. It could be that the US is colluding to try and stimulate that because it is well known that the US wants the Yuan to float freely and higher. The US may be intending to trigger a currency crisis in China to rebalance world trade in US's favour. I highly doubt that the cut in interest rates there had anything to do with homebuyers, the US wants its industry back, it wants imported inflation so that it can make use of some of that inwards investment to build factories and I wouldn't doubt that the US would be happy for the Yuan to appreciate, the Chinese economy to go t*ts up before the Chinese thing becomes a consumer led society which will dominate world resources for the next century. Either that or the US wants a piece of it and for its exports to be competitive and available to Chinese consumers.
5. Robh said...
but 'unexpectedly' stocks were larger than expected...
http://news.bbc.co.uk/1/hi/business/7050172.stm
how many more 'unexpected' stories are we supposed to believe??
6. planning4acrash said...
You know that the US is a paranoid country. I wouldn't doubt that it would do that partly to achieve security of supply and industrial output capable of a prolonged war.
7. Planning4acrash said...
Its not only the US who want an appreciating Yuan, see this link: http://news.bbc.co.uk/1/hi/business/7048488.stm
When Mandelson talks of Chinese interventions is is refering as much to obstructions as to currency manipulation that keeps the Yuan high. What he forgets is that interest rates in the UK would have to shoot up if that happens, it could be good in the long term to have a higher Yuan, but very disruptive in the short term as we re-tool and deal with higher interest rates.