Oil jumps above $70 on optimism demand to recover

Source: AP

58 minutes ago

SINGAPORE — Oil prices jumped above $70 a barrel Monday in Asia on investor expectations a recovering global economy will boost crude demand.

Benchmark crude for September delivery was up 73 cents to $70.18 a barrel by midday Singapore time in electronic trading on the New York Mercantile Exchange. On Friday, the contract rose $2.51 to settle at $69.45.

<snip>

Crude also has followed gains in global stocks. Most Asian indexes were up in early trading.

Prices may test an eight-month high of $73.23 a barrel in the coming days, but dismal consumer sentiment in the U.S. will likely weigh on demand and send prices back into the $60s, Shum said.



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Goddam them all. ROT IN HELL.

We have an oil furnace. Last year I had the thermostat set at 60-61 degrees. With an elderly person at home who could go into hypothermia that's not really safe. Still we barely covered the winter money-wise when it came to buying oil.

I really it hate how whenever there is one of these threads, people put up smug posts about their Prius, Smart, bicycle, local bus, whatever... does no one realize that some of us don't have these alternatives, or for something like one of these newer cars some of us just can't afford one?

Geesh.

They have really got to stop speculation on oil.

Have at your false highs, but those millions of barrels of oil flowting around in those idle oil tankers is going to be a pain in the ass to get trid of once the market colllapses.

I can wait to see those speculators figuring out that nobody want's their oil, and then seeing what miracle technology they bonjure up that supposedly absolutely requires Oil...

In their dreams.

The planet's economy uses up 82 million barrels per day. For reference, we were burning up 86 million barrels per day before the recession set in, so there is still a huge demand for oil. It is hardly that "nobody wants their oil."

I don't see those tankers making a huge dent in long-term prices.

Ironically, a major crash in oil prices now would royally screw us in a couple of years. If oil dropped down to $20/barrel, investment in new, expensive oil fields and production comes to a grinding halt. The incentives to buy fuel-efficient vehicles evaporate. People will buy new trucks and SUV's like crazy, especially the Chinese and Indians with their booming economies. And then, because of the lack of new supply coming onto the market and the increasing demand, oil prices will go through the stratosphere.

You think the maintaining an Oil tanker full of Oil is cheap?

I use very little oil, and most of my firends are on the same trend, so I really don't give a hoot rearading "Global Oil Demand", especially when Oil is a few minutes away from Midnite as being abandoned as a major energy source.

This is the last gasp of the Major Corporation and banking cabals to try and squeeze more use out of a product that is near End of Life.

If their was huge demand in oil, then OPEC wouldn't be cutting back production to keep prices high. Nice try on the "We can't live without Oil propaganda. I do just find without it thank you very much.

If I can do it, the rest of America can as well.

As far as expensive Oil field development goes, the quicker the reality of the non viability of continuing the Oil based economy of insane pollution and personal consumption in Automobiles, the better.

If you want to play the Oil game, then go right ahead. Pay for the Corporate big wigs to get richer, and buy out more govermnet clout.

Look around you. The plastics that permeate the modern world: oil-based. The food you eat: shipped by diesel-powered trucks, trains and planes, planted, cultivated and harvested with diesel-powered tractors, fertilized with natural-gas and oil-based chemicals. For example, every calorie of food an American eats requires 10 calories of oil to grow, ship and process. The roads you bike, drive or take a bus on: asphalt produced from oil. The public services you rely on (police, fire dept, etc) require oil to operate. The list goes on and on.

I'm curious; on what do you base your comment of "Oil is a few minutes away from Midnite as being abandoned as a major energy source." What energy source is minutes away from replacing oil? All the alternative energy sources available rely on either high oil prices or large government subsidies to make them cost-competitive. A crash in oil prices will destroy the alternative energy market without huge government incentives, and the government is a bit strapped for cash right now as it is.

I look around and see a lot of ignorant, uneducated people that have been sold a bill of goods that requires consumption, waste and a non productive lifestyle.

Beleieve it or not, but the food I ead travels no more than 50 miles from grower to market, and I am ok with that kind of energy use. If our civilization actually provided for those antiquated conveyances, such and horse and wagons, I would use those too.. But alas, they have been written almost entirely out of the equation in order to sell for cars and oil.

I don't use tractors to cultivate my land.. If fact, I practice no till agriculture, and it works just great for me. And for me, all my fertilizer comes from cover crops, and coppice with standards agroforestry. I just use the prunings to fertilize the soil, create soil tilth, and provide habitat for beneficial animals and insects. My biggest expenditure in fuel is using a weedeater to remove noxious weeds once or twice a season, otherwise, it sits idle most of the time.

You and your ilk would like to promote the idea that civilization would collapse if we stopped using oil. The only reason for this is for profit, and the fear of actually trying out a new way of doing things. Believe it or not, but they have thngs called compressed air engines which are about as efficient as anything, and don't require oil to operate. Do we here about these developments in America, Hell no, because it might interfere with bleeding every last peeny out of the suckers that have been sold down the Oil path, which was identified as a major source of pullution nearly 70 years ago, but ignored until we are now in the crisis that we are in.

Of course, Capitalists will always blame low oil prices on thwarting the Alternate Energy market. But when continuing Oil will kill us, is Profit really the motivating force behind keeping a failed system in place?

There are many technologies on the Horizon that will be the death knel for Oil, and the Government is holding it's cards close to the chest do to fears of economic collapse, and Balance of Power shifts.

You are welcome to travel the road you are on, and cheerlead Oil consumption, until you are blue in the face. Just don't fool yourself that everyone is as gullible as you are.

he would call for the speculation loopholes to be closed, having a near immediate effect of bringing oil levels back to a stable and real value tied to supply and demand.

Oh that's right, prices suddenly started to fall, pass the bill!

and when oil goes up, consumer prices go up - there goes the economy...again

Here's the usual pattern -- money dives into commodities to protect it from inflation or dollar devaluation.

Never fails, prices jump ahead of any major road trip and my travel cost skyrocket.

:sarcasm:

The global economy is wrapped in a feedback loop with oil prices. Any evidence of recovery results in a resurgence of oil prices. As oil prices increase they start to impact economic growth. As demand pushes into the limits of cheap oil supply, the global economy returns to the speculative price surge of 2007-2008, and that in turn causes economic chaos and the potential for another collapse.

Welcome to Global Econ 101 in the Peak Oil Age. Lesson one: expect massive market volatility.

In his book "Why Your World is about to get a Whole Lot Smaller". He says it is basically a manifestation of Peak Oil.

I've been speculating that prices would lower for about a week.:mad:

oil.... again.....

but this time, we mean it.


Warning: Oil supplies are running out fast

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=3998965&mesg_id=3998965

I'm sure if they told the media the DOW would be at 25,000 and unemployment at 2.5% by next month, they'd believe it.

:puke: