Oil Moving up again

luvpump

I saw this...
http://news.sky.com/skynews/Home/Business/Crude-Oil-Prices-Skyrocket-Meaning-Price-At-Petrol-Pumps-Will-Go-Up-Here/Article/200809415104971?lpos=Business_Carousel_Region_0&lid=ARTICLE_15104971_Crude_Oil_Prices_Skyrocket_Meaning_Price_At_Petrol_Pumps_Will_Go_Up_Here
Thought it was a wind up at first !!!

mewbie_2

Where are the shorter's when you need 'em?

Oh. Bother.

StevieJ

Bizarre as it seems, the US oil company stocks (e.g. Chevron) are down for the day.

Generali

!!!!!!? wrote: »

Fupping hell!

Just checked Bloomberg.com and as of 19:55 oil is at $128.10 a barrel!

Looks like we've got ourselves another oil bubble.

Today's the last trading day of the October 2008 Futures contract and this is a short squeeze. Oil is up 20% but gasoline is only up 4%. It looks to me like another hedge fund trade: loads of hedge funds make the same trade and then they get killed trying to get out of it. The price was up 30% at one point intraday apparently!

The price will collapse again over the next week or so I suspect. After all, nothing really changed today to make oil worth that much more.

chewmylegoff

mewbie wrote: »

Where are the shorter's when you need 'em?

Oh. Bother.

if you can find a broker who will facilitate it, there is nothing stopping you going short in oil futures at the moment.

WTF?_2

Generali wrote: »

Today's the last trading day of the October 2008 Futures contract and this is a short squeeze. Oil is up 20% but gasoline is only up 4%. It looks to me like another hedge fund trade: loads of hedge funds make the same trade and then they get killed trying to get out of it. The price was up 30% at one point intraday apparently!

The price will collapse again over the next week or so I suspect. After all, nothing really changed today to make oil worth that much more.

Indeed not - just another asset class bubble as a result of all those trillions of dollars of funny money created by the Masters of the Universe coming home to roost.

Unfortunately, the effect on business of stuff like oil likely to rocket up or crash down at any moment is going to be pretty detrimental.

If the Fed are going to try to magic away the deflationary effects of bad debt upon the banking system then expect this sort of thing to be a common event for the foreseeable future. There is a wall of money out there that has no corresponding useful product in the economy.

amcluesent

> There is a wall of money out there that has no corresponding useful product in the economy<

Yep. That's why Hirst's recent auction of pickled cows netted $100M+. Madness.

WTF?_2

amcluesent wrote: »

> There is a wall of money out there that has no corresponding useful product in the economy<

Yep. That's why Hirst's recent auction of pickled cows netted $100M+. Madness.

That gives me an idea for an 'Art Installation'.....

I'll call it 'Deflation' and it will consist of a big barrel of toxic waste which will actually cost a considerable amount to dispose of.

It will be 'interactive art' as the sap who buys it will be expected to spend as much of his ill-gotten gains as possible buying it - thus making its purchase deflationary.

To complete things, the buyer may fly-tip the barrel somewhere and let the taxpayer pick up the cost of safely disposing of it.

davetrousers

On BBC it has (link)

Brent Crude Oil $/barrel 101.24
West Texas Intermediate Crude Oil $/barrel 107.22

WTF?_2

davetrousers wrote: »

On BBC it has (link)

Brent Crude Oil $/barrel 101.24
West Texas Intermediate Crude Oil $/barrel 107.22

Good point - I was looking a the futures prices, which are now at about back down to $108. They were at $128 when I first looked, then $120.

COMMODITY FUTURES
VALUECHANGE% CHANGE
Oil108.64 5.89 5.73
Gold908.00 43.30 5.01
Natural Gas7.72 0.19 2.50