Price of oil drops 24% in 2 months

[chequita guevara]

Originally posted by VJ
I don't know anything about . . .

Did you even read what you quoted? That the U.S. delayed buying oil is a fact, not a theory. The U.S. always buys oil this time of year is also a fact. That our current Administration egnages in activity to manipulate elections, both legal and illegal is again a fact. So it's hardly a great stretch of the imagination to think that their delay in buying oil for the strategic reserve until after the elections is not a ploy to help the GOP in November.

[Flubber]

Originally posted by Kidicious


Purchases for the oil reserve is extremely small compared to the market as a whole, less than one percent for sure, and probably much smaller than that.

PLus a reserve is not really a part of consumption and I believe that the US publicizes some numbers of what they hold there.

Bottom line is that no strategic reserve (additions or depletions) changes the fundamentals of oil production and usage. It can change the demand or supply in the short run but I believe that any such action would be pretty transparent to the market

[Flubber]

Originally posted by chegitz guevara


Did you even read what you quoted? That the U.S. delayed buying oil is a fact, not a theory. The U.S. always buys oil this time of year is also a fact. That our current Administration egnages in activity to manipulate elections, both legal and illegal is again a fact. So it's hardly a great stretch of the imagination to think that their delay in buying oil for the strategic reserve until after the elections is not a ploy to help the GOP in November.

and it could be just as easily that their pundits are saying oil will continue downward and they are hoping to time a cheaper purchase. Your theory is possible but not necessarily the only possible reason for the change in purchasing behavior you indicate is a fact

[chequita guevara]

Well, that would be the probable explanation, were it not that they were waiting until after elections, rather than waiting simply until prices were lower. I can't prove what was in their heads, but they've lost all benefit of the doubt. With these people, the most banal reason is very likely the actual one.

[pchang]

When Kid

questions your theories on the evils of the Republicans, that should tell you something.

[DanS]

Oil closes down a dollar -- below $58/bbl -- despite OPEC saying that a 1 million bbl cut in output has been agreed.

A good rundown of the dynamics of the market by the AP (although it doesn't mention much of the market psychology of the fact that we have more than adequate supplies)...

http://www.niagara-gazette.com/feeds/apcontent/apstories/apstorysection/D8KMJVFG0.xml.txt/resources_apstoryview

[DanS]

And dropping...

$55.81.

From the FT...

Oil hits one-year low

By Neil Dennis

Published: November 17 2006 10:24 | Last updated: November 17 2006 12:11

Oil prices continued to fall on Friday following an overnight rout that drove the benchmark US Nymex front-month contract below $56 a barrel for the first time in nearly a year.

Concerns that the northern hemisphere is due a mild winter at a time when US crude stockpiles remain well above five-year averages, spurred fund selling said energy strategists.

Mary Haskins, technical strategist at Man Financial, said fund selling set in after prices fell beyond their opening lows. “Once below the opening lows, we started to see technical selling which gained momentum as the market worked its way lower,” she said.

Output cuts from the Organisation of Petroleum Exporting Countries to defend oil price drops have had little effect. Data from Petrologistics, the oil tanker tracking consultancy, showed yesterday that Opec production stood at 27.2m barrels a day, still well above the target ceiling of 26.3m bpd the cartel set to start on November 1.

Doubts over whether Opec can fully implement cuts in production will continue ahead of the group’s next meeting in December. Meanwhile, some strategists believe that if the cartel introduces further cuts in December, they could bite at the same time as peak demand for winter fuel, creating a “whiplash” rebound.

But prices continued to fall on Friday. By mid-day in London, Nymex West Texas Intermediate for December delivery was down 88 cents to $55.38 a barrel.

The sell off was also prompted by traders repositioning as the US December Nymex contract expires at the close of trade on Friday. There is normally volatility around the contract expiry and there was great trading volume in the January contract which traded 42 cents lower at $58.15 a barrel.

“The market appears poised to head lower,” said Mary Haskins. “My guess is $55 for the January contract after it becomes spot.”

ICE January Brent crude fell 34 cents to $58.20 a barrel.

The weakness in oil prices put gold under pressure with bullion retreating to $616.50 a troy ounce while silver fell to $12.67 a troy ounce.

Weakness persisted across base metals with copper falling to $6,690 a tonne while zinc eased back to $4,080 a tonne.

[TCO]

Originally posted by DanS
It's clear that Bush talked to his family friends, the Saudi Royal Family, and asked them to win the November elections for him.

A. Looks like it didn't work.

B. When he didn't bother with this (in 2002, 4), it did work.

[chequita guevara]

Gas prices are up a dime around here.

[TCO]

How's the eggs, tee-shirt Che, commie-lite?

[chequita guevara]

Are you trying to make sense?

[TCO]

come the revolution, you join a sitting circle and deliver self-examination.