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Oil Plummets 6 Percent In Commodities Rout

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http://uk.finance.yahoo.com/news/Oil-plummets-6-percent-reuters_molt-1646113707.html?x=0

Oil plummets 6 percent in commodities rout
Matthew Robinson, 17:36, Thursday 5 May 2011
NEW YORK (Xetra: A0DKRK - news) (Reuters) - Oil plunged 6 percent on Thursday, heading for the biggest daily drop in two years as concerns about economic growth and monetary tightening sent commodities prices spiralling lower.
Bearish signals came from data in both Europe (Chicago Options: ^REURTRUSD - news) and the United States, adding to economic concerns that have battered commodities markets all week. German industrial orders fell unexpectedly in March while U.S. weekly jobless claims hit eight-month highs.

Money chasing higher yields causing a new phase of price instability in commodities. Much vaunted recovery and containment in the Eurozone no longer credible. What happens when global demand falls of a cliff? Bonds do well, metals collapse and the US dollar looks good again as risk aversion sets in.

Nice to see oil crash--might see 1p of petrol next month? :lol::lol::lol:

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1p of petrol LOL

The chancellor's "gift" of not robbing us of another 1p in duty has been forgotten over the last few weeks as petrol has risen to 1.38p.

My new (to me) motor is getting around 38mpg around town so I have done my bit to minimize the greedy bugger's profits.

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Given that the cost of crude makes up about 48p per litre of petrol / diesel costs at current levels, we should expect that a 6% drop in the price of crude makes about a 2p difference in the cost of petrol / diesel at the pump.

The problem with high petrol / diesel prices has more to do with an explicit government policy to tax consumption over income whilst ignoring land and less to do with crude oil prices.

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A decent dent in the commodity bull will give central banks more fuel for their ZIRP. This in turn will fuel the commodity bull further.

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The chancellor's "gift" of not robbing us of another 1p in duty has been forgotten over the last few weeks as petrol has risen to 1.38p.

My new (to me) motor is getting around 38mpg around town so I have done my bit to minimize the greedy bugger's profits.

Diesel was 129.9 when Georgie announced the no rise in duty now it is 132.9 round my way but sainsburies kept it at 129.9 for a long while.

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http://uk.finance.yahoo.com/news/Oil-plummets-6-percent-reuters_molt-1646113707.html?x=0

Oil plummets 6 percent in commodities rout
Matthew Robinson, 17:36, Thursday 5 May 2011
NEW YORK (Xetra: A0DKRK - news) (Reuters) - Oil plunged 6 percent on Thursday, heading for the biggest daily drop in two years as concerns about economic growth and monetary tightening sent commodities prices spiralling lower.
Bearish signals came from data in both Europe (Chicago Options: ^REURTRUSD - news) and the United States, adding to economic concerns that have battered commodities markets all week. German industrial orders fell unexpectedly in March while U.S. weekly jobless claims hit eight-month highs.

Money chasing higher yields causing a new phase of price instability in commodities. Much vaunted recovery and containment in the Eurozone no longer credible. What happens when global demand falls of a cliff? Bonds do well, metals collapse and the US dollar looks good again as risk aversion sets in.

Nice to see oil crash--might see 1p of petrol next month? :lol::lol::lol:

Brent down $10 today to $110~ !, near on 9% fall now. Started the week near $126 4% Fall in German factory orders, Large US weekly job claims. Boom down go commodities

Main thing supporting was dollar debasement. QE2.5 could reverse the drop. The supply / demand dynamics never supported such a high price and it will be interesting to see how far the correction goes. I reckon Brent will go down to $90-100, total guess though really.

Probably will see a bit of a fall at the pump once it filters through.

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Much vaunted recovery and containment in the Eurozone no longer credible. What happens when global demand falls of a cliff? Bonds do well, metals collapse and the US dollar looks good again as risk aversion sets in.

Nope, more bonds will be retired from the public marketplace into the FEDs basement.

[Edit: linky to that prophecy please?]

Edited by scepticus

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http://market-ticker.org/akcs-www?post=185534

"Cheap money" - that is, unlimited leverage - will drive markets higher. For a while. It creates speculative manias. It creates the feeling of wealth. It creates a "high", much like an addictive drug.

But it is not wealth. It is not prosperity. And it is not sustainable.

The real economy, on the other hand, continues to suck. Gas prices have reached the point of demand destruction. It's $3.96 for regular here today, although I'm sure with oil off $9 it'll come in over the next few days.

GDP was soft as well. And the jobless claims numbers today? Horrible. Then there's all the "great news" over in Europe - Ireland, Greece, German production number misses and Trichet claiming "We have this guys. Really, we have this." Uh huh.

Are markets going higher? Based on what? Expectations on a forward basis and general bullishness are ridiculously high. Profit projections are for $100 on the SPX for the year. Really? With all the input cost pressures already in the cake and unable to come back out for six to nine months?

Dennigers view.

We'll get to see pretty sound how much of this is really mania in the markets.

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Nope, more bonds will be retired from the public marketplace into the FEDs basement.

[Edit: linky to that prophecy please?]

But when? Timing is everything. For the moment!

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...is this important or a blip...?....

http://www.guardian.co.uk/business/2011/may/05/oil-price-fall-commodities-market-glencore.... :rolleyes:

The price of oil tumbled by nearly $10 a barrel today – dragging silver, gold, copper, lead and tin with it – as mounting concerns about the US economy fuelled speculation that the commodities boom may be ending.

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I'd give it until equity benchmarks drop about 15-20% but yes, there is no exit plan.

Yes, more or less. And why would there be an exit plan? Might as well crack on and finish the job off properly and bevel all the corners so there's no sharp edges left.

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  • 312 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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