NEW YORK (AP) -- Crude oil and gasoline prices bounced higher Friday as Hurricane Ike swept through Gulf of Mexico, prompting companies along the Texas coast to shut down refining and drilling operations.
Nothing has even happened yet so lets raise the price because something might happen...that's supply and demand economics?
Or is that just ripping off the consumer?
Sure if something happens then of course we go thru the rapid increase/slow decline cycle again.
NEW YORK (AP) -- Crude oil and gasoline prices bounced higher Friday as Hurricane Ike swept through Gulf of Mexico, prompting companies along the Texas coast to shut down refining and drilling operations.
Nothing has even happened yet so lets raise the price because something might happen...that's supply and demand economics?
Or is that just ripping off the consumer?
Sure if something happens then of course we go thru the rapid increase/slow decline cycle again.
Pure speculation - Las Vegas probably would like a piece of that action
Oil prices jumped more than $20 a barrel Monday in biggest dollar jump ever as the dollar falls following the government's $700 billion Wall Street bailout plan.
Oil surged $22.46 to $127.01 a barrel, after reaching as high as $128.55 - a $24 gain - at these levels it will be oil's biggest gain ever in dollar terms.
The rally reached a fevered pitch as the session neared its close, partly due to the fact that Monday is the last day of trading in the October oil futures contract, which typically results in volatile trading.
As of Tuesday, the front-month contract will be November. That contract showed prices up $6.44 to $109.19 a barrel.
"The biggest news is that people are looking at the $700 billion plan as supportive of demand, supportive of the economy," said Peter Beutel. "Everything we are looking at right now says demand has a chance to come back if the economy starts to strengthen."
In addition, a handful of supply disruptions jolted the oil market's late-afternoon rally. Refinery capacity in the Gulf Coast was still limited post- Hurricane Ike, violence in oil-rich Nigeria, and chatter of Saudi Arabia trimming production added fire to the rally, according to Andrew Lebow, a broker at MF Global.
As the price of oil is whipsawed by demand worries, Wall Street's flailing crisis, investors are having a hard time grasping oil's next move. "Traders are trying to catch knives people are throwing from the top of buildings," said Lebow.
Electronic trading of oil was halted for five minutes on Globex this afternoon following the $10 spike in oil, but trading has now resumed.
So, while the price of oil was dropping by a third, gas prices were dropping by about 10%. Let's see how much today's spike in price will affect prices at the pump. $4, anyone?
east hockey wrote:Oil sees a record jump in price today.
From CNNMoney
Oil prices jumped more than $20 a barrel Monday in biggest dollar jump ever as the dollar falls following the government's $700 billion Wall Street bailout plan.
Oil surged $22.46 to $127.01 a barrel, after reaching as high as $128.55 - a $24 gain - at these levels it will be oil's biggest gain ever in dollar terms.
The rally reached a fevered pitch as the session neared its close, partly due to the fact that Monday is the last day of trading in the October oil futures contract, which typically results in volatile trading.
As of Tuesday, the front-month contract will be November. That contract showed prices up $6.44 to $109.19 a barrel.
"The biggest news is that people are looking at the $700 billion plan as supportive of demand, supportive of the economy," said Peter Beutel. "Everything we are looking at right now says demand has a chance to come back if the economy starts to strengthen."
In addition, a handful of supply disruptions jolted the oil market's late-afternoon rally. Refinery capacity in the Gulf Coast was still limited post- Hurricane Ike, violence in oil-rich Nigeria, and chatter of Saudi Arabia trimming production added fire to the rally, according to Andrew Lebow, a broker at MF Global.
As the price of oil is whipsawed by demand worries, Wall Street's flailing crisis, investors are having a hard time grasping oil's next move. "Traders are trying to catch knives people are throwing from the top of buildings," said Lebow.
Electronic trading of oil was halted for five minutes on Globex this afternoon following the $10 spike in oil, but trading has now resumed.
So, while the price of oil was dropping by a third, gas prices were dropping by about 10%. Let's see how much today's spike in price will affect prices at the pump. $4, anyone?
Lee
Well they just came to my work and said they needed .15 ¢ more a gallon for my fill up yesterday!
Never needed any special meetings when it climbed at a faster clip then it's retreating.
Still think we weren't getting hosed by those guys?? keep telling yourself that.
So if oil is traded in $'s and the dollar must be pretty strong these days with the financial collapse why are we suddenly down to $86/bbl.
Down to 82.75 a barrel for Nov. delivery, a positive note is that natural gas and Heating oil are also falling sharply which will lessen the blow to winter heating bills.
with the financial collapse why are we suddenly down to $86/bbl.
