OIL CONNUNDRUM

[jeffolie]

CRUDE oil traded near a one-week low in New York amid speculation a report today will show US supplies last week rose to their highest in almost seven years.

Stockpiles probably gained for a sixth week, climbing 0.8 per cent in the period ended March 17, according to a survey. This would increase inventories to their highest since April 1999.

"People are talking about a glut now," said Mark Waggoner, president of Excel Futures in Huntington Beach, California.

Crude oil for April delivery was at $US60.05 a barrel, down US37c, in after-hours electronic trading.

The contract plunged $US2.35, or 3.7 per cent, to $US60.42 on Monday, the biggest one-day decline since August 17 and the lowest close since March 10.

Oil futures on January 23 rose to $US69.20, the highest since September 2, on fear that Iran, the world's No.4 producer, could cut exports if the UN imposes sanctions to stop the Islamic Republic's nuclear research.

Insurgent attacks in Nigeria have cut production in the No.5 oil supplier to the US.

Petrol stockpiles in the US have fallen in the past two weeks and demand is running 2.5 per cent higher than a year ago, the Energy Department said.

"When prices are at these heights you need fresh worrisome news to keep us moving higher," John Kilduff, vice-president of risk management at Fimat USA in New York, said on Monday. "We'll be paying attention to gasoline because there is a question about supplies as summer approaches."

The US, the world's biggest oil consumer, uses about 10 per cent of the global supply to make petrol. Demand for the motor fuel usually peaks between the Memorial Day holiday in late May and Labor Day in early September.

Petrol stockpiles fell in the US Energy Department's past two reports as refiners closed refineries for seasonal maintenance and demand rose to its highest this year.

[blazespinnaker]

for a giggle:

"Dear MoneyNews Reader:

Oil prices will dramatically fall in the next 12 months to $40 a barrel!

That's the prediction of Financial Intelligence Report. You may know that NewsMax also publishes Financial Intelligence Report, a financial monthly for investors.

Financial Intelligence Report has made very accurate predictions. In April of 2004, Financial Intelligence Report revealed that oil prices would skyrocket from $29 per barrel to over $60 within 12 months.

As you know, that advice was dead on. Using our advice, our readers reaped huge financial rewards.

Our readers -- I might add -- now include more than 10,000 millionaires who use Financial Intelligence Report as a resource each month.

Our FIR subscribers have made big profits over the past year since we first predicted oil was going to $60 a barrel. We have made a killing in stocks like +207% in Diamond Offshore Drilling, +139% in Devon Energy, +105% in Oil Service Holders Trust, and 89% in Vanguard Energy Fund just to name a few. In fact, all 19 of the energy recommendations we closed out of in the past year were profitable.

But now Financial Intelligence Report has issued a serious warning for investors who are betting on oil, gas and other energy stocks.

Oil appears to be stuck at the $60-65 price per barrel. But not for long! We believe a major price decline is already in the works.

Our FIR subscribers are starting to position themselves now for this huge opportunity. I want you to be there with us too

Please take a moment to read the important information below.

Thank you.

Christopher Ruddy
NewsMax.com and MoneyNews


Profiting From the Coming Oil Bust of 2006

Many experts predict that skyrocketing oil prices are just temporary and that a massive price collapse is coming that will bring oil down to $35 to $40 per barrel dwarfing the Dot-Com crash of 2000.

Here's how you can profit before the bust begins.

A Special Financial Intelligence Report reveals:

* How oil prices have been inflated through Wall Street manipulation setting the average investor up for big losses.
* 3 actions to take now to position yourself for the monster profits when today's speculative oil prices fall back to the $35 to $40 range.
* Why there is plenty of oil to meet the growing worldwide demand.
* Why hedge funds will start dumping their oil contracts like there is no tomorrow. And how to double your money when it happens!
* Why Steve Forbes predicts that skyrocketing oil prices are just temporary and that a massive price collapse is coming that will bring oil down to $35 to $40 per barrel and dwarf the Dot-Com crash of 2000.
* Why many doom and gloom forecasts of $100 oil are based upon a common misunderstanding about oil supplies, and is being fueled by frenzied speculators.
* The surprising truth about how this past year's hurricane season is really affecting oil prices.

In this report find out how you can protect your wealth and actually make money . . .

PLUS get up to 5 FREE special reports including Profiting From the Coming Oil Bust of 2006.

Go here now.


A Special Message From Christopher Ruddy
Editor, MoneyNews.com

Dear MoneyNews Reader:

This past year the United States was the victim of two of the most severe storms in living memory. The disruptions to oil supply pipelines and ports in the Gulf region have had nationwide repercussions.

For the first time ever American consumers have had to factor in $3 a gallon gas into their budget threatening spending habits for the first time in over a decade.

Since then, it appears oil prices are moving sideways. They just don't want to make a sudden move in either direction.

But we believe that is all about to change.

If we are right in our conviction that is also gaining traction with a growing prowl of oil bears, we are about to embark on a punishing bear market for certain oil stocks.

Our FIR subscribers are starting to position themselves now for this huge opportunity. I want you to be there with us too.

Our FIR subscribers have made big profits over the past year since we first predicted oil was going to $60 a barrel. We have made a killing in stocks like +75% in Oil Service Holders Trust, +169% in Diamond Off Shore Drilling, +49% USGI Global Resources Fund, +83% Devon Energy Corp. and +41% in Exxon Mobil just to name a few.

Today, FIR is predicting oil will recede to the high $30s or low $40s per barrel.
Profiting From the Coming Oil Price Collapse

Oil prices have been severely exaggerated through manipulation. We have been pounding the table stating that there is plenty of supply to meet worldwide demand, and soon those hedge funds that are now driving up the price of oil will be dumping their oil contracts like there is no tomorrow.

We are not alone in making this clarion call but certainly ahead of the pack. Recently Steve Forbes, editor of Forbes magazine predicts that skyrocketing oil prices are just temporary and that a massive price collapse will dwarf the Dot-Com crash that began in 2000.

British Petroleum recently reported that current oil reserves would last for at least half a century. And contrary to dire warnings that oil production has peaked and the earth is running out of oil, Daniel Yergin-chairman of Cambridge Energy Research Associates says there will be a large, unprecedented buildup of oil supply in the next few years.

Yergin says between 2005 and 2010 capacity to produce oil could grow by 16 million barrels a day-a 20% increase. At any given time, the oil industry has about a 30-year supply of "proven oil reserves." Unfortunately, a lot of people take the "30-year supply of proven reserve" figure to mean that we will run out of oil in 30 years.

In this issue special report we reveal why many of the "doom and gloom" forecasts of "peak oil" are based upon a common misunderstanding about oil supplies. Forbes blames the oil price spike on rising inflation and aggressive buying on the part of burgeoning Pacific Rim countries.

In fact research tells us that this it the fifth time the world has "run out of oil." Dire warnings of impending shortages like those we are now hearing about were also issued just after World War I. And the "permanent oil shortage" of the 1970's gave way to the glut and price collapse of the 1980's and on and on.

But despite recent price rises, we are now paying less for gasoline than people did in the 1980's or in 1935, after prices are adjusted for inflation.

For more detailed analysis on the many energy alternatives and why warnings of "peak oil" are wrong, sign up today for a risk-free trial subscription to FIR.

Go here now.

Each month Financial Intelligence Report provides you with the essential financial information you need to avoid losses, intelligently grow your wealth and make steady profits in both bull and bear markets.

Unlike most financial letters - which are full of deceitful hype about how you can make big profits in just a few months, but in reality end up giving you recommendations that usually lose money - Financial Intelligence Report provides you with accurate, honest information to preserve your hard-earned money and build your wealth steadily.

In this new special briefing `Profiting From the Coming Oil Bust of 2006," you will find out:

* The one sector that will reap the lion's share of profits and our favorite basket of stocks that we feel could double in the next year.
* All airline stocks are like kryptonite today for investors right? Wrong! Now is the absolute perfect time to get in on this leader that is way undervalued and will soar as soon as oil prices start to show the smallest of crack.
* The number one strategy for profiting from the continuing interest rate hikes we see coming from the Fed.
* Three stocks to sell-or sell short-now that could make you 100% to 200% profits in the year ahead.
* And much, much, more.

This report is available online exclusively from NewsMax.

You can get your copy instantly by clicking here. PLUS you will receive up to 5 free additional bonus reports. More on that in a moment.
Actionable Investment Insight You Can Count on Every Month

Our report Profiting from the Coming Oil Bust of 2006 is just a sample of the important financial information you receive every month in the Financial Intelligence Report.

Unlike most other financial newsletters, with Financial Intelligence Report, there is no hype. There are no absurd claims.

It's just thoroughly researched, accurate information, reasonable projections and excellent investment advice from some of the best financial minds in the country.

And rather than narrowly focus on just a few investments the way most financial newsletters do, FIR covers it all: stocks, bonds, munis, options, commodities, even precious metals.

In fact, Financial Intelligence Report is more like a white paper report that major trust companies send to their billionaire clients.

Financial Intelligence Report is edited by Jarret Wollstein - a brilliant financial and political writer sought after in Washington and capitals around the globe. Over 5 million copies of Mr. Wollstein's publications have been sold throughout the world over the past 30 years.

As a Financial Intelligence Report subscriber, every month you'll receive this type of in-depth investment report, including:

* The best-value investor stocks
* High-yield dividend stocks
* How to buy gold, silver and platinum at rock-bottom prices - sometimes below spot!
* Gold-mining stocks poised for great profits
* How to slash your risk on bonds
* A buyers guide to options - how to avoid risking not one penny more than you invest
* Defense and tech stocks set to soar due to the War on Terrorism
* Bio stocks that will reap huge profits from the retirement boom
* And much, much more!

Make sure you don't miss an issue - go here now.

Most investment newsletters providing this type of incisive coverage typically cost $200 to $800 a year. Some cost well over $1,000.

So, how much does Financial Intelligence Report cost? Typically, FIR costs just $199 for a one-year subscription. But today we have an even better offer for you!
No-Risk, Limited-Time Offer.

For a limited time only you can sign up for a one-year trial subscription to FIR at the special introductory price of just $99 (12 monthly issues), and receive our special report, "Profiting from the Coming Oil Bust of 2006" and "Protecting Yourself From the Coming Real Estate Crash."

You'll save more than 50% off the regular price of $199. And your FIR subscription is completely risk-free. If for any reason you don't like the service, just let me know and you'll get the full, unused portion of your subscription returned to you! No questions asked.

And if you sign up for two years at the absolute discount rate of $179 - you'll save $219 off the regular rate, PLUS you'll get all four Special Bonus Reports - a $200 value - absolutely free, including:"

[EJ]

"Our readers -- I might add -- now include more than 10,000 millionaires who use Financial Intelligence Report as a resource each month."

Most investment newsletters providing this type of incisive coverage typically cost $200 to $800 a year. Some cost well over $1,000.

So, how much does Financial Intelligence Report cost? Typically, FIR costs just $199 for a one-year subscription. But today we have an even better offer for you!

No-Risk, Limited-Time Offer.

For a limited time only you can sign up for a one-year trial subscription to FIR at the special introductory price of just $99 (12 monthly issues), and receive our special report, "Profiting from the Coming Oil Bust of 2006" and "Protecting Yourself From the Coming Real Estate Crash."

You'll save more than 50% off the regular price of $199. And your FIR subscription is completely risk-free. If for any reason you don't like the service, just let me know and you'll get the full, unused portion of your subscription returned to you! No questions asked.

And if you sign up for two years at the absolute discount rate of $179 - you'll save $219 off the regular rate, PLUS you'll get all four Special Bonus Reports - a $200 value - absolutely free, including:"

--

How many of these 10,000 millionaires jumped in for a $100 annual discount off a $200 newsletter. Perhaps after all the tax cuts the FTC only has three employees left.