Oil Bugs rejoice

[Mega]

http://www.telegraph.co.uk/finance/f...-downturn.html

Am going Long on oil!
Mike

[GRG55]

Re: Oil Bugs rejoice

http://www.telegraph.co.uk/finance/f...-downturn.html

Am going Long on oil!
Mike

Taking investment advice from Gordon Brown would seem dangerous for your health...I would rather go long Guiness than oil after reading a headline like that...

[D-Mack]

Re: Oil Bugs rejoice

"Because as with the global financial crisis, this global crisis in our energy markets cannot be solved by one nation or one continent alone, but demands a truly international response," he said

I'm glad he didn't mention somekind of world government

[GRG55]

Re: Oil Bugs rejoice

"Because as with the global financial crisis, this global crisis in our energy markets cannot be solved by one nation or one continent alone, but demands a truly international response," he said

I'm glad he didn't mention somekind of world government

This is a meeting looking for a purpose...:p

Here's a Reuter's feed headline from the IHT this morning:

London energy meeting aims for oil price stability

Reuters

Published: December 19, 2008

By David Sheppard and Christopher Johnson
Energy ministers from the world's largest oil producers and consumers are likely to agree on the need for stable oil prices and better and more timely data on energy when they gather in London on Friday.

That is probably where the public agreement ends...

Might as well have a headline that reads:

"Paris Food Meeting Aims to Solve World Hunger by Tuesday"; or

" New York Financial Meeting Aims to End Taxpayer-Funded Bonuses"; or

"Zurich Actuary Meeting Aims to Return Insurance Companies to Underwriting";...:rolleyes:

[FRED]

Re: Oil Bugs rejoice

"Four wolves and a lamb meet to discuss future meal plans. The lamb proposed vegetarian menu. The meeting ended without a firm decision.

"We made significant progress today," said a wolf spokesman.

The wolves agreeing to meet again after dinner when then expect "differences of perspective to be settled."

[Mega]

Re: Oil Bugs rejoice

No one has been able to explain WHY oil has dropped like a stone. I wonder if Bush is pumping from the "SR"?
Mike

[Basil]

Re: Oil Bugs rejoice

No one has been able to explain WHY oil has dropped like a stone. I wonder if Bush is pumping from the "SR"?
Mike

One aspect of the entire commodities collapse that U have only seen mentioned in a few places is the notion that the Chinese were hoarding like crazy before the Olympics so that they would be able to go forward no matter what might happen. Then when all went well and they did not need the stockpiles they drew from them. It sounds logical that this might have been a piece of the puzzle, but I do not know if there is any substantial research to back it up.

The only thing I know about oil is that I am investing the money that I will not need for several years in oil, beginning today.

[nickz34]

Re: Oil Bugs rejoice

http://www.telegraph.co.uk/finance/f...-downturn.html

Am going Long on oil!
Mike

Just remember that Gordon Brown is the guy who had the bright idea, if I recall correctly, to sell 1/2 of the UK's gold reserves in 1999.

Nick

[LargoWinch]

Re: Oil Bugs rejoice

Taking investment advice from Gordon Brown would seem dangerous for your health...I would rather go long Guiness than oil after reading a headline like that...

ahh... buggar!

[LargoWinch]

Re: Oil Bugs rejoice

The only thing I know about oil is that I am investing the money that I will not need for several years in oil, beginning today.

Hmm oil or 0% T-Bill...let me think about it. Gotcha! The Bank of Sealy! (as coined by $#!)

[The Outback Oracle]

Re: Oil Bugs rejoice

No one has been able to explain WHY oil has dropped like a stone. I wonder if Bush is pumping from the "SR"?
Mike

I thought Symbols did a pretty good job of explaining it under your other post "Why is oil falling"

[jrowl]

Re: Oil Bugs rejoice

I also have an issue about this. All thoughts of if we don't maintain high prices, then future supply is harmed aside. (looks like oil prices are factoring in that global economic growth never recovers, the chart does not lie, only those who refute what the chart is saying)

Please excuse poor spelling, direct cut&paste

ME
Looks like they want to "price fix" oil, they wanted to do it when it was too high, now they want to do it when they think it's too low. They have a cartel, what else do they need to fix the price of oil, world government to support high oil prices? It's a joke.

In western countries, cartel's are illegal, I'm suprised to see western governments wanting to support OPEC, guess the laws are just for citizens, not for government, do as I say, not as I do. Local petrol stations arn't allowed to form cartels, but higher up in the global food chain our government says it's ok because the big boys have trouble operating in the free market, too bad for the local petrol station if he is suffering feels the need to band together with the other local stations to elevate the price.

It would be great to see the cartel fall apart. Cartels allways fail, someone allways ends up cheating, it causes disorder among the members, others cheat and there is a great deal of hatred among members and the cartel falls away. Why let this process stop, why should world governments step in and help out OPEC?

HIM
Its in your interest it keeps flowing ... there's more wells being shut off than there are people leaving their cars and heaters untouched. Remember it is winter in the Northern Hemisphere and these winters will kill you without heat.

ME
Give me a break!

I'm sure everyone here at hotcopper wants higher oil prices for their investments, don't let your biases get in the way, don't become one of those "I believe in the free markets when times are good, I believe in socialism when times are bad". Darn, old grannie not paying enough for her heating, joe sixpack not paying enough to fill up his truck, low oil prices good for everyone, everyone except those who are going to make a buck with high oil prices. Government intervention may rise the price for a short time, but higher artificial prices will reduce demand and increase production causing even greater problems down the road. What do you reckon yellowcake, lets do what they did in the 30's, you know when FDR to support farm prices ordered all the cattle to be slaughtered, all the farm grains and produce to be dumped in the sea and all the sown crops to be tractored over, lets keep oil prices high, order the super tankers to dump their loads at sea.

Let the free market determine the price of oil, when demand picks up (if the economey recovers lol) the price will rise. Probably the only good thing about this global recession is that oil prices have gone down, thats been a blessing for this world economy. Ofcourse we hear claptrap now that govrnment must come in and support oil prices. You think it's been a good move how the FED has been trying to support US house price, keeping them artistically high which people can't afford and it spurs even more construction of new homes, lets to the same thing to oil, raise prices when people are having trouble to afford fuel so producers can keep their production up. There's been demand destruction, let the supply destruction take place so demand and supply are in balance. I'm sure people here will try to educate me that this is different with oil, the free market price is wrong, the free market price is telling you that your wrong, we don't need higher prices. I think the people who want government to support higher prices are being dishonest with themselves, if they truely believe that allowing prices to fall too far, there will be a supply crunch, then the price will go much higher than if government came in to support prices now. If you truely believed in what you are saying, you'd make much more money if government did not support prices. Truth is you know if government does not support the price, oil may fall further and settle at a price your not comfortable with. If OPEC believed this, they would be happy, they would be thinking, haha, oil is at $30, in afew months oil will be over $300 a barrel lol. No they want governments to help them raise the price now, around their $75 mark which they think is a fair price, they truely believe that oil will settle around at a low price and stay there, thats why they are panicking, they know they will lose their power, their cartel is not enough now to set prices, they need world government an even bigger cartel.

Seriously government intervention makes no sense.

HIM
Oil is finite and replacements are generally more expensive. So now oil prices have collapsed, so too will the profitability of production models of the 'next' energies because they will almost certainly need a high oil price to attract investment and to make money. And confidence for investors to return to this sector when oil prices rally again will be shattered on false pretenses.

Governments should have artifically placed a floor in oil prices (say US$60/barrel) to protect the development of these new liquid energy systems particularly now the easy credit has gone. Now we definately have no hope of realising the next option on from cheap oil eg cellulosic ethanol, liquid ammonia fuels from renewable sources etc.

We need high oil prices because otherwise people don't understand there is actually a problem lieing ahead with supply.

So whilst your moral highground is admirable it is typical of the shallow thought that prevails through the sheeple of this world and really it is why we are likely to be up the creek without a paddle. No affordable liquid fuel = no future.