cdcaddy

John Hussman: Is There a Possibility of $60 Oil?

Geez - I could have written this tripe...OPEC is searching for the point of diminishing return...right now they have oil over $100 which is a price point they have wanted...as demand curbs - so will production, they won't flood the market with product - NO manufacturer would do that... So unless the global economy tanks - OPEC will keep their finger on the pulse to ensure optimal pricing. I'd love to see $60 oil...but we are along way from that at the moment...

Is It Time to Bet Against Oil?

Until we have a sane and workable energy policy [which will take a while given our current Congress], a pull back in consumption will/could help stabilize oil at the $100 to $140 range. Face it - OPEC has their hands in our pockets and now that the price is where they
have wanted it...they will be hard pressed to see it fall. It wasn't by accident that Iran just launched a long range missle - and new fields will only fill in the gaps of those fields that are now lagging in production. There are so many factors in the price of oil now including the growing cost to find it - then extract it. Cheap oil is years away...but if anyone can find a way to replace it to some degree - it is the USA. Necessity is the mother of invention.

Oil Hits $140: What Could Trigger a Reverse?

I think what she needs is a little more research. While OPEC may produce a bit more, the non OPEC oil suppliers are having fall offs in their production. Look at the total oil supplies not just the Saudi's. The only quick fix is to curtail consumption around the globe. Plus this country needs to start a mass infrastructure campaign for E85 from sugar cane like Brazil does. Just wait and watch - corn ethanol producers in the US will have their heads [and bottom lines] under water with corn prices climbing higher and higher...

Recent Oil Spike: 'Irrational Exuberance'?

I'm not so sure the bubble will burst until we collectively do more to slow consumption. Supply and demand can be irrational of one another if their are outside influences that can impact either ie: no one really sees China or India slowing in growth in the short term [hence if supply were to tick up - there would be a home for it] With no way of replenishing oil there's no way for it to recede unless new sources are found - even then you have to look at the higher cost associated with
tapping into it. Face it - the world economy has some real soul searching to do to negate a dwindling natural resource. Add to this the fact that OPEC has no incentive to curtail rising prices until it adverserly
effects buying - right now - there's no incentive for them.

I would like to see how the market would react if we were to discontinue the speculative trading of oil [if it's even possible]

Farm Bill and Oil Prices

CHL - you're right - just look at the rest of the farm bill that's going to pass... our politicians are screwing us over and over and we're not stopping them... what's wrong with us that we'll put up with this...
AND oil speculators are bullish because they know one thing - the days of cheap oil are over! AND when was the last time a government idea or regulation ever really solved anything???