Briefing.com: Crude oil touches $107pbl, now up $1.55 to $106.70pbl (COMDX)
Amazing. Here is the April 08 Crude Oil Futures chart:
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Thank goodness this is not part of the Core!
Crude Oil = $107
March 10, 2008 11:00am by Barry Ritholtz
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BEIJING (XFN-ASIA) – Average prices of Chinese steel products in February rose 25.63 pct year-on-year to 5,095 per ton, according to the China Securities Journal
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Reuters – March 10 – Brazilian miner Vale said on Monday Anglo-Dutch steelmaker Corus, owned by India’s Tata Steel , joined the rest of its big clients in Europe in accepting a 65 to 66 percent iron ore price increase for two types of iron ore.
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How’s inflation in your world? It’s doing just fine in mine.
“Thank goodness this is not part of the Core!”
Good one. I like what Jim Rogers had to say last week about the situation:
“People have been telling me for five years that oil prices are going down. Every time I ask them where the supply is coming from. So far, nobody has been able to tell me. Please tell me where the new oil is because I want to invest in it.”
“Rogers Talks About Investing In Commodities”
http://www.investorazzi.com/2008/03/06/rogers-talks-about-investing-in-commodities/
And I read in the WaPo that McCain is revved up about spending 3 million to track grizzly bears. Perhaps someone should explain that $110-150 oil is creating a real bear market and instead of talking about chump change, we should concentrate on the dollar, conserving oil, etc. Hard to address problems when the powers that be ignpore them.
I’m starting a new business converting SUVs into starter homes. We’re rebranding the Hummer as ‘The Wentworth’.
It’s getting to the point that a horse and buggy can be considered competitive alternate technology.
Yes, thank goodness that no one has to buy any crude or products too. LOL
Everybody keep your eye on the inflation ball whilst the deflation genie pulls the rug from under your feet.
Good one Marcus.
I was wondering how Buffet’s purchase of that doublewide manufacturer is fairing these days. I know it is a teeny holding but I wondered at the time what he saw that I didn’t.
I guess H. Ross Perot has the last laugh afterall. Yea, but he was crazy.
$107?
By next year, that will be cheap…
Seriously, we’ve got two robots tooling around Mars for years and we need oil to fuel transportation ? Give me a break! The technology has been there for decades. The will has been there too. The problem since Rockefeller has been monopoly control of transportation options. Now that the easy oil is running out, they want to jack up the price while they still monopolize the methods of transportation. We get it. I’m going to switch to electric big time. Oil for lubrication and nothing else. This sucker market model of promising us the moon with cars and delivering dog doo has outlived it’s usefullness. Storing energy from various solar sources and using it to charge your car, lawn mower, weed wacker and run your house works quite well and doesn’t smog up the neighborhood.
Then WHY oh WHY is my XOM stock down $12 ??
It was 95 in December and 82 today, I don’t get it.
Michael Donnelly,
I believe XOM has significant refining operations, and crack spreads have been hammered.
“People have been telling me for five years that oil prices are going down. Every time I ask them where the supply is coming from. So far, nobody has been able to tell me. Please tell me where the new oil is because I want to invest in it.”
Supply can be a simple function of less demand. Which makes me wonder if OPEC will cut production when the demand in China subsides because the games are over in order to support $100 oil?
“Storing energy from various solar sources and using it to charge your car, lawn mower, weed wacker and run your house works quite well and doesn’t smog up the neighborhood.”
Glad you mention that.I chat with my brother (he’s an engineer specialized in industrial heating and cooling) this AM and asked him why hasn’t solar made more inroads in the last 5 years.
The biggest hurdle is the ability to store the energy generated and use it on demand. Turns out that nanotechnology is about to solve that problem with “supercapacitors” (see wikipedia entry at http://en.wikipedia.org/wiki/Supercapacitor )
There are some existing industrial applications for this gizmo. However, the truly exciting thing is that there is a proof of concept device that could be used in cars and houses. (http://www.technologyreview.com/NanoTech/wtr_16326,303,p1.html) Alas, the quandary of producing them reliably and at an affordable cost hasn’t been solved…yet.
Several companies are working on that. Maxwell Techonologies, AFS Trinity of Seattle, General Elctric, APowerCap Technologies (APCT) Proton Power are others.
Crisis in one sector can be an investment opportunity in another…
alt energy – perhaps GE will be the next big energy company? wind and solar makes all the sense in the world. guess you combine that with battery gas hybrids for Detroit and bam, oil becomes the poor man’s energy source. let the Chinese and Indians pay the reaper….will love to see the politics of that one pan out. maybe Beijing will step up to foot the bill in the Middle East? hehe.
I heard of this great transportation method called “walking” – it works really well, too! There are also these things called “bicycles”. No fuel needed at all!
But as the LA Times pointed out yesterday, what we need is affordable housing near where the jobs are, and decent public transportation. How about we get the government working on those things, and out of the war for oil business?
108 now.
Anyone remember Goldman Sachs’ prediction in March 2005 about an oil price spike to $105? It seemed like such hyperbole at the time.
It went ahead of itself in the short-term.
AGG>It’s getting to the point that a horse and buggy can be considered competitive alternate technology.
I’ve been joking for a while now that the Amish will end up laughing their asses off at us… no, I take that back, they are very nice people, they will say, “welcome back. want to buy a horse?”
Then WHY oh WHY is my XOM stock down $12 ??
It was 95 in December and 82 today, I don’t get it.
Posted by: Michael Donnelly | Mar 10, 2008 12:16:22 PM
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Wall street does not believe in peak oil
I live in Amish country. Nice folks.
Peak oil depending on how you define it is here. World oil production has been the same since 2005. So we have reached the peak, or maybe not, but it doesn’t look good.
For sure the cheap oil is gone. The easily found oil is gone. The war in the ME just expedited the price increases. If we have a rip roaring recession, oil prices could fall, but I doubt if they will ever see $80 oil again. We burned it up driving SUVs and
such. Too bad, big changes coming.
The myth of peak oil goes nicely with Global Warming myth (of course, the same dudes invented it). Sigh.
Ten years ago oil was at 13 dollars a barrel. Last June it was 65 dollars a barrel. Today it is 107. Think maybe the Dubai Mercantile Exchange set up by NYMEX last June might have a little something to do with this? Hard for the SEC to look into this of course. Wink Wink.
The figures everyone uses are proven reserves. Our proven reserves are 22.4 billion, only 10 billion less than 60 years ago. US Oil companies have tax incentives not to increase their proven reserves in the US. All told, we are estimated to have 180.4 billion barrels of oil in the US, almost 9 times proven reserves.
Much of our imported oil comes from Canada and Mexico, and most from non-Mid East sources. Saudi Arabia has never sold oil at market prices, we have no idea what kind of a deal we get from them, and our oil companies have deals with many of the state owned oil companies in other countries from which we get oil. The oil profits then get laundered in the tax havens, while we pay top dollar at the pump.
The oil prices are high because we want them high. The oil sands in Canada are not profitable at 30 dollars a barrel, profitable at 65 dollars a barrel, and very profitable at 107 dollars a barrel, and our Oil companies have significant stakes in these projects. Canada has an estimated 300 billion of potentially recoverable oil sands, and production is expected to increase to 2.8 mbd from by 2015 from 1.2 mbd in 2006 ( we import 1.8 mbd from canada todaym about 99% of it’s exports). North America holds 80% of the worlds recoverable Oil Sands, and Canada’s oil sands account for 14% of the Worlds total Oil reserves (technically recoverable at post 2003 prices).
There is no reason oil should be above 65 dollars a barrel, except whats good for Big Oil is good for America, and our dollars value is diminishing, and so prices need to rise to maintain demand for the petrodollar and clean up the excess dollars we have dumped on the market.
X*M stock is not rising with oil prices because everyone knows they hide their excess profits in the tax havens, so the shareholders will not benefit (their record 2007 profits are only marginally higher than 2005 despite much higher oil prices).
What a load!
There’s never going to be cheap oil again?
Is that like….there not making anymore land? Or how about….Don’t get priced out forever. Buy a home now. Housing is never gonna be cheaper!!
wholly crashing home prices Batman! Guess they were wrong! Ohh,..those poor poor housing speculators.
Thanks for the links Francois. I’ve been looking at a lot of off grid ideas. My daughter and I are building a exercise bike to charge batteries and small appliances. My on is working on using a small solar cell to create hydrogen out of tap water.
Shoot, solar cells are reaching 40c a watt.
Don’t get me wrong, we’ve got a huge footprint. We are still pulling the boat to the lake to ski.
Anybody need to buy some carbon credits? I got’em cheap!