Thread: And it starts, here we go again!
02-21-2011, 01:19 PM #1
- Join Date
- Oct 2005
And it starts, here we go again!
Oil rises to near $88 as Libya protests spread
[B]By ALEX KENNEDY, AP
9 hours ago
SINGAPORE ó Oil prices jumped to near $88 a barrel Monday in Asia amid investor concern that the violent protests spreading in Libya could disrupt crude supplies from the OPEC nation.
Benchmark crude for March delivery was up $1.67 at $87.87 a barrel at late afternoon Singapore time in electronic trading on the New York Mercantile Exchange. The contract fell 16 cents to settle at $86.20 on Friday.
In London, Brent crude for April delivery gained $1.78 to $104.30 a barrel on the ICE Futures exchange.
On Sunday, Seif al-Islam Gadhafi, son of Libyan leader Moammar Gadhafi, warned protesters that they risked igniting a civil war in which Libya's oil wealth "will be burned." Libya exports about 1.0 million barrels of crude a day.
Earlier Sunday, anti-government demonstrations spread to the Libyan capital of Tripoli and protesters seized military bases and weapons. In the eastern city of Benghazi, about 60 people were killed, while more than 200 have died since the unrest began seven days ago.
Oil traders are also closely watching recent protests in Iran, which is the second-largest crude exporter in the Organization of Petroleum Exporting Countries behind Saudi Arabia.
"The concerns in the market go beyond Libya," said Victor Shum, an energy analyst with Purvin & Gertz in Singapore. "It's unlikely we're going to see any meaningful disruption of oil from the Middle East or North Africa, but the spread of this unrest has raised anxieties."
Some analysts are worried higher oil prices will undermine a fragile economic recovery in developed countries. For every $1 increase in the price of a gallon of gasoline, U.S. consumer spending falls by about $120 billion, said Gerard Minack, an economist with Morgan Stanley.
"Energy is more important for developed-world consumers than food," Minack said. "This is why further sharp rises in oil prices, if they occur, would be likely to be seen as a threat to growth."
In other Nymex trading in March contracts, heating oil rose 4.7 cents to $2.76 a gallon and gasoline gained 3.9 cents to $2.59 a gallon. Natural gas futures were ateady at $3.88 per 1,000 cubic feet.
will this affect the US?
where is Yoyoyeminni when I need him!!!
02-21-2011, 02:28 PM #2
Not at the moment but SOON! Let's see how much uproar there will be when pump prices climb above what they were when Bush was in office who will they blame now Obambee LOL I just wander!
02-21-2011, 02:42 PM #3
02-21-2011, 02:53 PM #4
- Join Date
- May 2008
- Lake Havasu
Why is it, that oil companies, for the last 3 years have all recorded RECORD PROFITS!!????
This is all "artificial market manipulation". The "crude oil futures" commodity market is very loosely regulated.
So, before, we had people making billions on trading in Credit Default Swaps......AKA, the housing Boom!!! Which of course, caused the collapse, or nearly so, of our economy. So, where do you think all those people/investors went, with their money???
You're looking at it; OIL!!!! They are artificially inflating the futures prices!!!! Another Ponzi Scheme will emerge...just wait for it!!!!
None of this has anything to do with who is, or is not the President. It's all about the "Global power brokers". The riches of the rich.
They can't steal anymore of our money through their "mortgage schemes"....so, this is the "newest" scheme, and it's only going to get rich.
$4/gallon for gas, my a$$. And for what!!?? There is no shortage!!!
Just greedy people stealing other peoples money, that's all I see.
02-21-2011, 11:22 PM #5
It should be illegal for someone to make money in the commodities market. Stocks sure, but the things people need to survive should never have the value inflated.
02-22-2011, 01:56 AM #6
Um, so if we make the free market illegal, who's job will it be to set prices, the gov't??? Now there's a recipe for disaster. We tried that in the 30's under FDR, although for a different reason(deflation), & it resulted in shortages & starvation. Policies like that are partly responsible for turning an economic downturn into the Great Depression.
True, speculation on commodities drives prices & people who don't understand financial markets are quick to call it manipulation, but investors are only willing to put their capital at risk because there are REAL market forces in play. Right now those forces include rising global demand for food, energy & raw materials, inflation caused by a weakening dollar & political unrest in places that we rely on for our energy. Many farmers use futures as a hedge on their crops, & I've known builders & other savy business owners who are affected by the price of raw materials who use them to offset material costs. The fact is, without the profit motive of the exchanges there would very little liquidity in many of these markets, causing lower production & even higher prices.
The problem is we've had a long run of politicians doing everything except protecting the free market. If we didn't owe the Chinese so much friggin money we'd be able to apply more pressure for them to stop artificially deflating their currency, making US imports more attractive & leading to increases in production, supply & lower prices. Those are the types of things we need a gov't for, not for meddling in our economy. Want someone to blame for rising prices, look at the idiots who don't understand economics making policies that give incentives for not producing or just outright prohibit it(gulf oil/clean coal/nuclear/San Joaquin Valley farming), while at the same time destroying our currency with massive borrowing. Traders can & do affect near term prices, but we don't cause long term trends, we simply recognize & profit from them.
Other countries have made the same mistakes over & over throughout history, but you know the old saying..."Those who don't learn from history are doomed to repeat it."
02-22-2011, 02:43 AM #7
Free markets have their strengths to a certain extent. My position is to illegalize speculation altogether, not the entire "free" market!
Don't you think excessive speculation can create an artificial price increase?
Why not require purchasers of commodities to actually take delivery of the product they purchase?
02-22-2011, 06:23 AM #8
02-22-2011, 07:30 AM #9
- Join Date
- Oct 2005
already saw 2 stations back in the old neighborhood rise to 3.08 and 3.10 for reg. yesterday and you guessed it, non American owned stations...
02-22-2011, 09:07 AM #10
We have quite a few stations at 3.15 for reg and that is high for here in the south!!!
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