OSUGT Posted September 27, 2006 Report Share Posted September 27, 2006 I know this topic has been beaten to death, but I never lose interest in what oil is selling for per barrel. http://money.cnn.com/2006/09/27/markets/oil_eia/index.htm?postversion=2006092715 Here is what I dont understand. Oil prices have been falling rapidly over the past month. Supplies are rising, demand seems to be fading, tensions are lighter etc etc. It's the perfect scenario for a price drop. However, after a strong inventory report came out today, oil went down then shot up almost 2 bucks. The following is a quote from the article above that best sums up the fundamentally wrong way oil is bought and sold: "The feeling was that if the market wasn't able to break $60 with even these kinds of stats, then maybe it's time to accumulate some," said Nauman Barakat, an energy trader at Macquarie Futures, the trading arm of Macquarie investment bank Energy traders are manipulating the market to make a buck that comes right out of our wallets! We have the biggest supplies of crude and gas that we've had in years, but oil still goes up. I'm sorry, but to me, the supply and demand theory just went sailing right out the window. Just had to vent. Quote Link to comment Share on other sites More sharing options...
Kohones Posted September 27, 2006 Report Share Posted September 27, 2006 Jason - like everything else - IT'S ALL ABOUT $$$$$$$, end of story - Why aren't you signed up for Norwalk Friday?????? Quote Link to comment Share on other sites More sharing options...
OSUGT Posted September 27, 2006 Author Report Share Posted September 27, 2006 Tom, You know the biz...Couldnt get off of work:) I expect low 12s my friend! Quote Link to comment Share on other sites More sharing options...
mmrmnhrm Posted September 27, 2006 Report Share Posted September 27, 2006 The following is a quote from the article above that best sums up the fundamentally wrong way oil is bought and sold: "The feeling was that if the market wasn't able to break $60 with even these kinds of stats, then maybe it's time to accumulate some," said Nauman Barakat, an energy trader at Macquarie Futures, the trading arm of Macquarie investment bank Actually, this makes quite a bit of sense to me. It's the exact same notion as placing a limit order on the stock market, saying "If Microsoft falls below $25/share, buy 100 shares", writ a couple hundred times over. If enough people think oil's a bargain at $60/bbl, it'll never go below that. They just better hope that the supply/demand inversion doesn't last too long, or they'll lose massive amounts of money, just like hedge funds have been on their bad natural-gas call. Quote Link to comment Share on other sites More sharing options...
dragknee66 Posted September 28, 2006 Report Share Posted September 28, 2006 Im happy with the $1.95 Ive been seeing in certain spots. To even think we were paying over $3 bucks a gallon before seems nearly unbelievable. Quote Link to comment Share on other sites More sharing options...
Lustalbert Posted September 28, 2006 Report Share Posted September 28, 2006 Don't worry, we will be paying over $3 again. Just waiting on Chavez or the Iatola to spook the investors again. Quote Link to comment Share on other sites More sharing options...
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