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Realistbear

$100 Oil Anticipated With Glee As Fed Spike Commodity Prices

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http://www.telegraph.co.uk/finance/newsbysector/energy/oilandgas/8105143/Oil-price-spikes-on-Libyan-talk-of-100-barrel.html

Benchmark US crude for December delivery rose to a high of $84.14, up $1.19, before slipping back to trade at around $83.94 by 1445 GMT, adding to gains of nearly 2pc on Monday. ICE Brent crude climbed 70 cents to $85.32.
Shokri Ghanem, chairman of Libya's National Oil Corp, told Reuters he thought oil prices would get closer to $100 by the end of the year.

If QE2 proves to be a damp sqibb commodities may collapse overnight. A lot rides on ben's decision at 18:30 GMT tomorrow.

Will that be 17:30 our time?

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http://www.telegraph.co.uk/finance/newsbysector/energy/oilandgas/8105143/Oil-price-spikes-on-Libyan-talk-of-100-barrel.html

Benchmark US crude for December delivery rose to a high of $84.14, up $1.19, before slipping back to trade at around $83.94 by 1445 GMT, adding to gains of nearly 2pc on Monday. ICE Brent crude climbed 70 cents to $85.32.
Shokri Ghanem, chairman of Libya's National Oil Corp, told Reuters he thought oil prices would get closer to $100 by the end of the year.

If QE2 proves to be a damp sqibb commodities may collapse overnight. A lot rides on ben's decision at 18:30 GMT tomorrow.

Will that be 17:30 our time?

Commodities may well take a sharp downward turn if QE2 fails as you say. However, this is not just a monetary demand isse, though I fully concede that it is a major variable.

There is also the growing problem of actual demand for oil that is now on a par, if not exceeding, supply. This will put a floor on the price whatever else happens with the money supply.. We aint gonna see oil less than, say, $30 dollars per barrel ever again. $50 is probably optimistic. This, in turn , will hold the floor up on all other essential commodities since oil energy is so inextricably implicated in their production and distribution

Edit to add:

I should perhaps qualify the above with the point that if oil were to drop below, say, $30 per barrel, this would only be on the back of a delfationary collapse so severe that $30 would have the purchasing power of, say, $100.

In other words, in real terms, oil will never again see less than 30-50 dollars per barrel.

Edited by tallguy

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http://www.telegraph.co.uk/finance/newsbysector/energy/oilandgas/8105143/Oil-price-spikes-on-Libyan-talk-of-100-barrel.html

Benchmark US crude for December delivery rose to a high of $84.14, up $1.19, before slipping back to trade at around $83.94 by 1445 GMT, adding to gains of nearly 2pc on Monday. ICE Brent crude climbed 70 cents to $85.32.
Shokri Ghanem, chairman of Libya's National Oil Corp, told Reuters he thought oil prices would get closer to $100 by the end of the year.

If QE2 proves to be a damp sqibb commodities may collapse overnight. A lot rides on ben's decision at 18:30 GMT tomorrow.

Will that be 17:30 our time?

We're on GMT.

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Is this the last spike before deflation sets in?

Deflation only sets in if they want it to. They own the printing presses

Economic contraction? Now that's a different matter.

Edited by tallguy

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Commodities may well take a sharp downward turn if QE2 fails as you say. However, this is not just a monetary demand isse, though I fully concede that it is a major variable.

There is also the growing problem of actual demand for oil that is now on a par, if not exceeding, supply. This will put a floor on the price whatever else happens with the money supply.. We aint gonna see oil less than, say, $30 dollars per barrel ever again. $50 is probably optimistic. This, in turn , will hold the floor up on all other essential commodities since oil energy is so inextricably implicated in their production and distribution

Edit to add:

I should perhaps qualify the above with the point that if oil were to drop below, say, $30 per barrel, this would only be on the back of a delfationary collapse so severe that $30 would have the purchasing power of, say, $100.

In other words, in real terms, oil will never again see less than 30-50 dollars per barrel.

Global Peak oil has arrived, no doubt we will be hearing more and more about it in the mainstream media over the next few years

http://aspo.tv/

Dr. James Schlesinger: The Peak Oil Debate is Over

Posted on 01. Nov, 2010 by ASPOTV in 2010 Peak Oil Conference, Keynote, Schlesinger, James

3

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Deflation only sets in if they want it to. They own the printing presses

Economic contraction? Now that's a different matter.

Deflation has set in. M3 is collapsing. The FED are cushioning it.

If full deflation were to truly be unleashed, the US could lose around $4.5 trillion in annual GDP in a matter of months. That's about 30 percent. The dollar, however, would likely soar.

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Deflation has set in. M3 is collapsing. The FED are cushioning it.

If full deflation were to truly be unleashed, the US could lose around $4.5 trillion in annual GDP in a matter of months. That's about 30 percent. The dollar, however, would likely soar.

Deflation is order of the day. All this QE is tinkering in the edges trying to orchestrate an 'orderly' deflation of the bubble.

One consolation of high oil prices. Less cars on the roads....

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Deflation has set in. M3 is collapsing. The FED are cushioning it.

If full deflation were to truly be unleashed, the US could lose around $4.5 trillion in annual GDP in a matter of months. That's about 30 percent. The dollar, however, would likely soar.

So, you concede that deflation is being controlled and cushioned? By definition, then, you accept that whether the money supply deflates or not is down to monetary policy.

It doesn't just "happen" without their permission.

Edited by tallguy

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Deflation has set in. M3 is collapsing. The FED are cushioning it.

If full deflation were to truly be unleashed, the US could lose around $4.5 trillion in annual GDP in a matter of months. That's about 30 percent. The dollar, however, would likely soar.

M3 = multiple counting of the same money. Tells you nothing much.

Want to become a billionaire?

Get a pound and keep counting it.

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  • 261 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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