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Realistbear

All Hell Breaks Loose As Oil Peaks At $104

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http://money.cnn.com/2008/03/03/markets/oi...sion=2008030313

Record oil prices peeking at
$104
Crude rises just below milestone as dollar sinks and big investment funds rush into commodities.
NEW YORK (CNNMoney.com) -- Oil reached a historic high near $104 a barrel Monday, surpassing the inflation-adjusted level of the 1980s, as a weakening dollar made crude futures attractive to investors.

It panic time folks! 1.50 for a litre of petrol very soon. Now that the frenzy has begun oil should start to really take off now. Could stocks start their really big falls now? 20% in a day stuff?

As Ben cuts IR to 0% or even negative ( <_< ) oil should start to rise rapidly putting the entire world economic system into the danger zone.

We are about to pay for the Gordonesque HPI bubble and the trillions that went into making it the largest and most foolish bubble of all time.

Edited by Realistbear

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Guest xeouialp
the largest and most foolish bubble of all time.

Surely the tulip bubble was the most foolish

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If Merv drops IRs, pump gas prices will rise even more.

It will be interesting to see what OPEC do on Wednesday.

I predicted 1.50 a litre some time ago.

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Guest xeouialp
..............but that one's over. We don't know how foolish this one has been yet.

p-o-p

What!!! It's over??? I've just ordered 30 containers of bleedin' tulip bulbs!

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http://money.cnn.com/2008/03/03/markets/oi...sion=2008030313
Record oil prices peeking at
$104
Crude rises just below milestone as dollar sinks and big investment funds rush into commodities.
NEW YORK (CNNMoney.com) -- Oil reached a historic high near $104 a barrel Monday, surpassing the inflation-adjusted level of the 1980s, as a weakening dollar made crude futures attractive to investors.

It panic time folks! 1.50 for a litre of petrol very soon. Now that the frenzy has begun oil should start to really take off now. Could stocks start their really big falls now? 20% in a day stuff?

As Ben cuts IR to 0% or even negative ( <_< ) oil should start to rise rapidly putting the entire world economic system into the danger zone.

We are about to pay for the Gordonesque HPI bubble and the trillions that went into making it the largest and most foolish bubble of all time.

RB- You have been a busy poster today ! Nothing like a banking crisis and oil price increase to get the blood going. Did you hear Gordons speaech during the week where he again blamed the credit crunch that JUMPED across the Atlantic, nothing to do with his disastrous policies of course. We on this site are going to enjoy the next few months as it has been difficult trying to convince my friends that we are in for a big shock , some are still in denial. RB you have stayed the course with your excellent posts , you should now enjoy your fruit.

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RB- You have been a busy poster today ! Nothing like a banking crisis and oil price increase to get the blood going. Did you hear Gordons speaech during the week where he again blamed the credit crunch that JUMPED across the Atlantic, nothing to do with his disastrous policies of course. We on this site are going to enjoy the next few months as it has been difficult trying to convince my friends that we are in for a big shock , some are still in denial. RB you have stayed the course with your excellent posts , you should now enjoy your fruit.

I was enjoying the HPC but now--I am not so sure. This all looks like we may be heading toward something a lot nastier than a recession. We are going to feel the effects of the world crash in the UK very soon and yes, Brown, must share in the responsibility because he did nothing to contain the irrational exuberance that bloated house prices and irresponsible levels of debt in this country. But his real crime was in creating an economy that is over-reliant on financial services which will fare the worst when the worldwide crash finally hits.

As far as profiting from the crash goes it will be nice to buy a house for 70% below the peak but if the economy is destroyed this country may not be worth living in. This is why I have not transferred my STM funds into sterling--I believe we will suffer far more than the US if we go into a severe recession because of the miracle economy and its one-trick pony courtesy of Gordon.

Of to the US for a recky this coming June--much will be revealled by then.

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Since you posted 1/2 hr ago it dropped 200 points.

This ain't supply and demand, this is momentum funds pumping it up. Same as PMs and commodities. Volatility will rise.

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I was enjoying the HPC but now--I am not so sure. This all looks like we may be heading toward something a lot nastier than a recession. We are going to feel the effects of the world crash in the UK very soon and yes, Brown, must share in the responsibility because he did nothing to contain the irrational exuberance that bloated house prices and irresponsible levels of debt in this country. But his real crime was in creating an economy that is over-reliant on financial services which will fare the worst when the worldwide crash finally hits.

As far as profiting from the crash goes it will be nice to buy a house for 70% below the peak but if the economy is destroyed this country may not be worth living in. This is why I have not transferred my STM funds into sterling--I believe we will suffer far more than the US if we go into a severe recession because of the miracle economy and its one-trick pony courtesy of Gordon.

Of to the US for a recky this coming June--much will be revealled by then.

Agreed ! I fear too as I do not wish the effects of this to hurt all the people. I wish we could be selective , like having Gordon waiting at a soup kitchen ? Have a good trip.

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What!!! It's over??? I've just ordered 30 containers of bleedin' tulip bulbs!

But remember that quality tulips will always hold their value.

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Of to the US for a recky this coming June--much will be revealled by then.

You are not buying one of those $1 houses in Detroit are you RB? :lol:

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Why panic about things you can't change?

I wonder how much it would have to go up before people start to panic or notice. It was still "gridlock" near me earlier on.

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Rising oil prices are a worry, sure.

But where did "all hell break loose" though?

I must have missed it. Has "all hell" been restrained yet, or is it still breaking loose somewhere?

The BBC had prices ending up at just below US$102.

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Since the cost of fuel at the pump would be about 35p per litre without duty + VAT, I would have thought oil would have to go to

almost $200 per barrel to fetch £1.50 per litre.

Incidentally , 2007 fuel duty (as of 1 October 2007) in the United Kingdom is:

50.35 pence per litre for ultra-low sulphur unleaded petrol/diesel

53.65 pence per litre for conventional unleaded petrol

56.94 pence per litre for conventional diesel

30.35 pence per litre for bio-diesel and bio ethanol - low tax to encourage consumer conversion

Source: http://www.petrolprices.com/fuel-tax.html

Why is ultra-low sulphur diesel (which most of it is now) more than unleaded at the pumps? Is it that much more expensive to produce than petrol?

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Since the cost of fuel at the pump would be about 35p per litre without duty + VAT, I would have thought oil would have to go to

almost $200 per barrel to fetch £1.50 per litre.

Incidentally , 2007 fuel duty (as of 1 October 2007) in the United Kingdom is:

50.35 pence per litre for ultra-low sulphur unleaded petrol/diesel

53.65 pence per litre for conventional unleaded petrol

56.94 pence per litre for conventional diesel

30.35 pence per litre for bio-diesel and bio ethanol - low tax to encourage consumer conversion

Source: http://www.petrolprices.com/fuel-tax.html

Why is ultra-low sulphur diesel (which most of it is now) more than unleaded at the pumps? Is it that much more expensive to produce than petrol?

yes - and demand - particularly in winter pushes up diesel demand.

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30.35 pence per litre for bio-diesel and bio ethanol - low tax to encourage consumer conversion

Unless cars start coming on the market that can run conventional petrol as well as biofuels, don't expect much take-up; especially if there's an up-front conversion cost to pay for getting your car to run on the stuff.

After the fuel price spike in summer 2005 and LPG-powered cars being exempt from the London congestion charge, there was a surge of people having LPG tanks fitted to their cars. As LPG sales increased, the government stealthily reduced the relative tax break on it in comparison to conventional fuels, by about 2-3p a year in effect. When had an LPG kit installed in my car in autumn 2004, the fuel was effectively 40% cheaper than petrol, mile for mile. When I sold that car in August 2007, the difference was down to between 20-25%. If people start to convert to biofuel en masse, Gordie will recoup his revenues by reducing the tax break differential (by the odd penny here and there, so the sheeple won't notice). That is 100% correct; guaranteed.

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What!!! It's over??? I've just ordered 30 containers of bleedin' tulip bulbs!

You'll be OK. The tulip crash only affects Holland. UK tulips are fundamentally sound.

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I've just been out and bought all the used cars I could get on finance - then, I filled them up with petrol as an investment - i'm not going to drive any of them, but i reckon it will pay for my pension - the price of petrol will only go up!

good idea or what?!?

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Oil will fall back soon. It looked like happening today before the reports of US action in Somalia (unjustifiably) spooked the market.

DEMAND is the thing. It is sure to fall. Recent climbs in the price of crude have been based on two things: $ weakness and speculative buying (as an alternative investment and a hedge against inflation).

We saw some falls today on the back of US motor sales being hideous. The market is beginning to get the idea.

$ weakness will reverse. Soon? Maybe. Eventually? For sure. The rest of the world is going to catch the cold in a huge way and the key thing supporting currencies will be guns. The $ will climb in this environment. I'd also expect $ support from the rest of the world soon. A weak Dollar is not really in the interests of the exporting countries (those with big $ reserves..)

Speculation will end. Oil as an investment is a foolish idea. Demand is not constant and will fall. At record prices, oil right now is the worst investment anyone could make. Everything is stacked up against it. An inflation hedge? Haar. Gold maybe. Oil never. It is an input of which there is a phenomenal amount still in the ground.

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