Article

2006-09-20 Home Front Economy

Oil ends under $62 on hefty supply, OPEC talk

Archived material is restricted to Rantburg regulars and members. If you need access email fred.pruitt=at=gmail.com with your nick to be added to the members list. There is no charge to join Rantburg as a member.

Posted by Steve White 2006-09-20 00:00|| E-Mail|| Front Page|| [11137 views since 2007-05-07] Top

#1 That's the market at work. Low prices breed high prices as supply (that is unprofitable at low prices) gets taken out of circulation. High prices breed low prices as supply (that is profitable at high prices) gets put back into circulation.

Posted by Zhang Fei 2006-09-20 01:01|| http://timurileng.blogspot.com]">[http://timurileng.blogspot.com] 2006-09-20 01:01|| Front Page Top

#2 Bloomberg is quoting oil at $61 as of 5 am EST.

Posted by phil_b 2006-09-20 04:55|| 2006-09-20 04:55|| Front Page Top

#3 ...Fox News yesterday said that oil closed slightly higher because Thunderhorse was down, but everything started heading south again almost immediately. I get the feeling that the traders have been burned far more badly than we are generally aware, and this could be the long-awaited 'market adjustment'. Can only imagine what it'll do once Prudhoe Bay gets back to 100% again.

Mike

Posted by Mike Kozlowski 2006-09-20 06:17|| 2006-09-20 06:17|| Front Page Top

#4 High prices also cut demand. This, and the rise of interest rates, signal an economic slowdown, technically known as a banana.

Posted by Nimble Spemble 2006-09-20 06:32|| 2006-09-20 06:32|| Front Page Top

#5 technically known as a banana

Banana, dead cat bounce... why did no one explain in my youth that high finance is so poetic? Possibly I might have developed a facility in it instead of an aversion to money altogether! ;-)

Posted by trailing wife 2006-09-20 09:00|| 2006-09-20 09:00|| Front Page Top

#6 We still need to find more oil, and conserve. The combination of the two as it is sliding, would slow Iran and Hugo Chavez down more than anything we could so diplomaticley.

Posted by plainslow 2006-09-20 09:04|| 2006-09-20 09:04|| Front Page Top

#7 Not find more - drill more! And refine more! We have oil in Alaska and off the coast of Florida which we refuse to drill for 'enviromental concerns' (as if environmental controls hasn't progressed any in the past 40 years...).

I've heard that China and Chavez are already drilling off the florida coasts -- within sight of the US mainland? The environmental groups don't seem to have a problem with them.

Posted by CrazyFool 2006-09-20 09:27|| 2006-09-20 09:27|| Front Page Top

#8 Just take it by force from the Arabs. They don't get money for terrorism and their poisonious Islam spewing and we get cheap oil.

Win-win situation!

Posted by DarthVader">DarthVader 2006-09-20 09:42|| 2006-09-20 09:42|| Front Page Top

#9 I've heard that China and Chavez are already drilling off the florida coasts -- within sight of the US mainland? The environmental groups don't seem to have a problem with them.

Hmm... perhaps the "environmental movement" is the current home of displaced Communists after all. They're not going to bash their fellow travelers.

Posted by eLarson 2006-09-20 09:54|| http://larsonian.blogspot.com]">[http://larsonian.blogspot.com] 2006-09-20 09:54|| Front Page Top

#10 I've heard that China and Chavez are already drilling off the florida coasts -- within sight of the US mainland?
Give them a subsidy to do it off the coast of Martha's Vineyard, that would really make Ted and John Mad.

Posted by plainslow 2006-09-20 10:24|| 2006-09-20 10:24|| Front Page Top

#11 And we could put the windmills on top of the drilling rig, a win-win situation for both the oil industry and renewable energy.

Posted by Phil 2006-09-20 11:13|| 2006-09-20 11:13|| Front Page Top

#12 Phil, I like it. LOL

Posted by plainslow 2006-09-20 11:49|| 2006-09-20 11:49|| Front Page Top

#13 Oil at ONLY $62 pbl? Please. When we start drilling more, and refining more, and it drops to around $25 a barrel, then I might get excited.

We've been pavlovianized. We know gas was at $3 per gallon, so any relief is celebrated. Considering the VAST amount of reserves we have not tapped, (due to moonbattery, envirowackos and other issues)it ought to be at 79 or 89 cents.

Posted by mcsegeek1 2006-09-20 12:21|| 2006-09-20 12:21|| Front Page Top

#14 mcsegeek1, you are defintely right. Anwar, off the Florida shore, wherever we need to look, we need to look. And still we need to conserve. $25.00 a bareel would crush Chavez and Iran. That's the easist war we can fight.

Posted by plainslow 2006-09-20 13:11|| 2006-09-20 13:11|| Front Page Top

#15 I'm still stuck on comment #5 and trying to picture a 'dead cat bouncing...' big question and certainly off topic: will the corpse land on its stiff little feet?

Posted by USN, ret. 2006-09-20 14:06|| 2006-09-20 14:06|| Front Page Top

#16 Unless its back is buttered, lol.

Posted by Seafarious">Seafarious 2006-09-20 14:15|| 2006-09-20 14:15|| Front Page Top

#17 We've been pavlovianized

I wondered why I've been drooling everytime I've been filling up.

Posted by Capsu 78 2006-09-20 16:25|| 2006-09-20 16:25|| Front Page Top

#18 I've been conditioned to fill up every time the needle hits the "E"?

Posted by kelly 2006-09-20 17:51|| 2006-09-20 17:51|| Front Page Top

#19 No, to think that $2.25 per gallon is a bargain.

Posted by mcsegeek1 2006-09-20 23:14|| 2006-09-20 23:14|| Front Page Top

23:55 ex-lib
23:50 Dave D.
23:47 ex-lib
23:41 Zenster
23:41 tipper
23:39 JosephMendiola
23:37 Zenster
23:32 JosephMendiola
23:29 Swamp Blondie
23:28 JosephMendiola
23:26 Frank G
23:26 mcsegeek1
23:21 Abdominal Snowman
23:18 JosephMendiola
23:16 mcsegeek1
23:15 Dave D.
23:15 Frank G
23:14 Cyber Sarge
23:14 Zenster
23:14 mcsegeek1
23:12 Zenster
23:09 Zenster
23:06 Dave D.
23:06 RWV
Merry-Go-Blog