Thursday, Apr 17, 2008
Oil prices have surged to almost $115 a barrel
The Telegraph: Oil surges as investors hunt an 'anti-dollar'
"Hot money funds are also playing a role, trading oil as a sort of "anti-dollar". Crude is moving in reverse lockstep with the greenback, pushing ever higher (with double or triple leverage) as the dollar reaches fresh lows against the euro. Surging oil prices are in turn stoking inflation, causing investors to bet yet more on oil futures as an inflation hedge. "This has entered a vicious spiral," Dr Lasserre said"
Posted by sold 2 rent 1 @ 10:24 AM (746 views) Add Comment
14 Comments
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1. sold 2 rent 1 said...
Looks like a bubble in oil is brewing.
Although oil is still surging, it's percentage above its 200 dma peaked in Q4 2007 and is now falling.
If the falling USD is drving the oil price then the USD index should exhaust into 69-71, rebound sharply, and crashing the oil price at the same time.
This all might happen in the next 2-3 weeks.
2. uncle tom said...
We may well see a price correction, but it's not written in stone.
Global demand continues to rise, while global supply is very short of headroom. Watch Russia - they've been pumping at an incredible rate, with some estimates that fully 10% of their reserves have being exploited each year. If the 1% drop in Russian output during the first quarter is the start of them running dry, the price consequences will be dramatic!
3. mrmickey said...
There does seem to be a lot of talk in the press lately about rising prices being tied to shortages but this seems to me to be missing the point. Rising prices are actually tied to the flooding of the world with paper money and what we are actually seeing is a classic crack up boom in action.
4. sold 2 rent 1 said...
UT,
I agree that the long term price could be 200+ but short term, a correction is needed.
If oil hits 120 then with gold at 950 the ratio falls below 8, which could be a huge springboard for gold
5. sold 2 rent 1 said...
mrmickey,
"There does seem to be a lot of talk in the press lately about rising prices being tied to shortages but this seems to me to be missing the point. Rising prices are actually tied to the flooding of the world with paper money and what we are actually seeing is a classic crack up boom in action."
This is the deception in the mass media.
In any report on food, oil, gold etc there is never any mention of money supply growth.
US M3 is 19.6pc (nowandfutures.com)
6. sold 2 rent 1 said...
USD/EUR touched 1.598 this morning.
Could be an interesting day
7. cornishman said...
Putin is flexing his muscles on the world stage in many ways. It's not beyond the realms of possibility that falling Russian output is 'staged'. Who knows what they've actually got in the way of reserves? If they pump less, the price goes up and they get more for each barrel they do have...
8. malct said...
On Sunday March 16th, Glastonbury Radio recorded a debate between Rob Hopkins from Transition Towns (who believes oil is running out) and Ian Crane (who spent 20 years in the oil business) who believes we are being conned and there is MASSES OF OIL 3 or 4 STATES OF THE USA. We were joined by Peter Taylor who had a lotto say about Global warming.
Who is Ian R. Crane?
An ex-oilfield executive, Ian now lectures and writes on the geo-political webs that are being spun; with particular focus on US Hegemony and the VI agenda for control of global resources. Prior to his retirement from the corporate arena, Ian enjoyed a career of 25 years in telecommunications and international oilfield services, a career that provided the opportunity to live & work in the U.K., Continental Europe, the Middle East & Houston, Texas.
http://www.thealternativeview.co.uk/speakers.php
also Geoff Stray, web-master of www.diagnosis2012.co.uk and author of 'BEYOND 2012: Catastrophe or Ecstasy'
The year 2012 is becoming the new focus of catastrophe theorists as the coming global crisis;
The most well-known source of speculation about 2012 is from the fact that the 5,125-year '13-baktun cycle' of the ancient Maya civilization will terminate then, but there are many other visions, prophecies and calendars that also pinpoint 2012.
9. tyrellcorporation said...
Hasn't there been an enormous oil find off the coast of Brazil in the last weeks or so?
10. malct said...
seems that way tc
The international director of the Brazilian state-controlled oil multinational Petrobras, Jorge Zelada, would not comment on the impact of the news disclosed this Monday, April 14, by the director general at the National Petroleum, Natural Gas and Biofuel Agency (ANP), Haroldo Lima, that the company would have discovered another huge oil field in the Santos Basin.
Yesterday, Haroldo Lima stated that according to unofficial data, the field known as Carioca, in the Santos Basin, could contain 33 billion barrels of oil equivalent. Just to have an idea, proven reserves in Brazil currently total 12 billion barrels.
http://www.sott.net/articles/show/153815-New-Oil-Discovery-in-Brazil-May-Change-Way-Petrobras-Does-Business
11. sold 2 rent 1 said...
The scales are balanced on a worldwide level
12. Malct said...
tc re house prices in exeter - the venue I mentioned above is in Totnes soon
http://www.thealternativeview.co.uk/speakers.php
13. Greenbay said...
just wanted to say, thank to all you taxpyers for funding my large portfolio :-)
its great to see the big boys on my side working for me....
hehehe keep on renting losers..
14. sold 2 rent 1 said...
'BEYOND 2012: Catastrophe or Ecstasy'?
Answer: Ecstasy (but after a mental and economic destruction)