There’s nothing like a US$140 reality check to start your day. That’s what the oil price reached overnight in NYMEX trading. But before you go predicting US$200 by the end of the week for a barrel of crude, a quick story down the digital memory lane. You can make a good argument for higher oil prices based on how tight the supply chain is. But right now, the oil price is going up on just about any little rumour. The market has ceased to be rational about it.
June 27th, 2008 | Dan Denning | 6 comments | ContinuedAll Posts Tagged With: "oil price"
Happy Birthday Subprime Crisis, Oil Price up 96%
Think back to a year ago. This week is the one-year anniversary of the beginning of the subprime crisis. A year ago this week we covered the slow-motion collapse of two Bear Stearns funds, the High Grade Structured Credit Strategies Enhanced Leverage Fund and the High Grade Structured Credit Strategies Fund. On June 22nd of last year, you could still buy a barrel of West Texas Intermediate crude for $68.85. Today a barrel of oil traded on NYMEX will cost you $135.02
June 23rd, 2008 | Dan Denning | 2 comments | Continued
An Oil Price Correction is on the Horizon, When and Where
This year, being an oil bear has meant finding a large helping of foot in your mouth on a daily basis. A lot of oil analysts have been wrong about the oil price this month. It hasn’t pulled back. Oil exploded to US$135 just days ago. That has left many with a bunion aftertaste. An oil shock is undoubtedly here. It may turn out to be “the” oil shock, or it may not. Either way there’s a lot you have to take in as an energy investor. Oil is breaking new ground each time it gains.
June 19th, 2008 | Gabriel Andre | 1 comment | Continued
Saudi Arabia Pours Oil Investment into Australia
Saudi Arabia runs its oil operations like a family Italian restaurant. In theory, everyone owns a bit of the business. There aren’t private interests like Santos (ASX:STO) or Woodside (ASX:WPL). Aramco is Arabia’s oil producer. The profits from oil then go to the government. Of course the last link in the chain, where the government transfers money to its people, is usually missing.
May 28th, 2008 | Al Robinson | 1 comment | Continued
Warren Buffett Travels to Europe to Seek Out Better Investments
Warren Buffett was born in 1930. He must remember what the United States was like when it was still growing and genuinely prosperous. “I’m fond of 1929,” said he a few months ago. “I was conceived that year and have always had an agreeable feeling towards the crash.”
May 27th, 2008 | Bill Bonner | 2 comments | Continued
U.S. Markets Could Rally on Oil Price Decline
Oil and the credit market-the same one two combination that have pummelled stocks all year-took a few wacks on Friday. Crude oil crossed US$126 in New York. While oil futures move up 8.3% for the week, the Dow moved 120 points down on Friday. Yet you still get the feeling there’s a lack of conviction in the stock market about the effect of high oil prices in the real economy. What are the two sectors that would be hit most by higher oil prices? Transport stocks and retail would seem likely.
May 13th, 2008 | Dan Denning | 0 comments | Continued
Oil Price Chart Shows Slight “Correction” in Near Future
The price of oil just keeps going up. It reached nearly US$123 in New York trading over night. The Masters of the World at Goldman Sachs repeated their claim that a ’super spike’ in the oil price could drive it to US$200, on the back of red-hot demand in the developing world and the “non-recession” in the U.S. Supply bottlenecks won’t help. The increase in the oil price between 2001 and 2006 was a structural revaluation of oil’s value to the global economy.
May 7th, 2008 | Dan Denning | 1 comment | Continued