Oil & Gas Forums - Worldoils

The prices are a bit above $70.

Wow. The party did not last long.

The U. S. House of Representatives voted on Monday to reject a $700 billion rescue of the financial industry.

At this moment NYmex crude is $97.31 and Dow is down by 716 points and still dropping. Maybe we see below $90 today itself?

The US government's 700 billion bailout is expected.

Once it comes, the oil prices will rise. But how much?
There is the northern winter approaching..

No guesses here, but Monday will be rally day...

Light, sweet crude for October delivery jumped as much as $25.45 to $130 a barrel on the New York Mercantile Exchange before falling back somewhat to trade at $123.77. Just a week back, Oil prices had reached a 7 month low of $91 a barrel, having previously seen an all time high of $147 a barrel in July.

The $25, highest one-day price jump ever, was mainly due to investors seeking a safe place to invest their money which was threatened by a $700 billion bailout plan to stabilise America's financial crisis. Investments also drove down the value of the dollar against other currencies, and as oil trading is done in dollars, a decrease in the dollar lead to frenzied oil buying, which in turn jacked up the oil prices.

Another reason for Monday's price hike seems to be a phenomenon called Short Squeeze. Oil is traded in futures, i.e. the oil is bought for a specific price for a particular month in the future. The Oil contract for October expired on Monday, and hence the buyers, who were hoping for a decrease in the oil prices before the expiration date were forced to buy contracts which led to the price being pushed up even more.

Now the oil prices have gone over $103 very fast.

The US financial aid has rocketed the stock market.
Will people will travelling again?
Will the consumption rise?
Will the OIL PRICES go over $120 again?

Inevitable you say? Let us watch the next few days/weeks.....

Source of the news : http://www.tehrantimes.com/index_View.asp?code=178069

It says : London’s Brent North Sea crude for delivery in November tumbled as low as 89.80 dollars per barrel in Asian trading.

Bad news for those companies banking on huge profits on drilling equipment, drill ships.. The oil exploration may slow down with the falling prices.

Oil prices have slid to a 7- month low. Bloomberg reports "Crude oil for October delivery fell as much as $4.17, or 4.4 percent, to $91.54 a barrel, the lowest intraday price since Feb. 11."

The main cause for this slide seems to be the bankruptcy protection sought by the Lehman Brothers Holdings Inc, once the fourth largest investment bank in America. The fear is that the current credit crisis will affect the economy and cut the demand for oil.

Analysts say that the Oil prices may continue to fall before they are stabilised. Will OPEC make good its threat to cut the Oil output, now that the Oil prices are below $100 or will the prices plunging below $90 be the relief that the consumers are waiting for.

I had said on the 7th of September that the falling oil prices will make some organisation very unhappy. No great prophecy from me. We all know it. Now it has happened. OPEC has cut supply.

Now, please refresh me... Some months ago, was it not some guy from one of the OPEC countries who said that the oil prices were rising only because of speculation? Of course, it is due to speculation. That is half the story. Now we know that speculation kicked aside, there are other major factors.

The OPEC has succeeded in its attempt to keep the Oil prices above $100 by reducing the oil output. A statement released after the OPEC meeting states that the OPEC OIl ministers have decided to trim the overall output by more than 500,000 barrels a day, and the current output is fixed at 28.8 million barrels a day.

Oil prices had lost more ground Tuesday ahead of the OPEC decision, falling $3.08 to settle at $103.26 on the Nymex, the lowest settlement price since April 1. But after OPEC released its statement, Light, sweet crude for October delivery rose $1.00 to $104.26 a barrel in the New Yourk Mercentile Exchange.

The consumer optimisim has paid off.

The price of oil actually touched as low as $98 today. Motorists can rejoice.
But we are looking at below $90 as the next step. Let us wait and watch.