$this->bbcode_second_pass_quote('Cashmere', 'Y')ou have gotta love the old gal! You just can't keep her down.
Man, this has really got to piss off the "it's a bubble" crowd. Just when they thought they heard the faint hissing of deflation, they realize that the sound they heard was the big man drawing in another huge breath, during which draw some slight deflation took place.
Soak it up DSEs.
PeakOil is You
Oil back up over 5 today . . .
Re: Oil back up over 5 today . . .
by copious.abundance » Thu 05 Jun 2008, 21:43:27
In case you didn't notice, the reason for the $5 rise today was because the head of the European central bank said they were thinking of raising interest rates, not because of some new fears about supply shortages. When Europe raises interest rates (while US interest rates remain unchanged or fall), that raises the value of the Euro relative to the US dollar, and conversely, the value of the dollar falls even more. Since oil is denominated in dollars, oil suppliers need still more dollars to get the same value for each barrel of oil. Thus the price of oil rises.
In other words, the rise was all about exchange rates.
Stuff for doomers to contemplate:
http://peakoil.com/forums/post1190117.html#p1190117
http://peakoil.com/forums/post1193930.html#p1193930
http://peakoil.com/forums/post1206767.html#p1206767
http://peakoil.com/forums/post1190117.html#p1190117
http://peakoil.com/forums/post1193930.html#p1193930
http://peakoil.com/forums/post1206767.html#p1206767
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copious.abundance - Fission
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Re: Oil back up over 5 today . . .
by Forney2008 » Thu 05 Jun 2008, 21:44:53
$this->bbcode_second_pass_quote('SoylentGreen', 't')hats Ben Bernake not Dan and he inherited a bowl full of feces.
Inflation 4-5%???? with gasoline up 160% in 4 years? the Government accounting is way more creative than the worst big business scams in history.WorldCom, HealthSouth, Tyco, Enron....
Inflation has to be at least 6 to 10 percent. The only difference is wage growth is not growing 6 to 10 percent. If people demand increases like that, employers will say,"fine, your jobs go to China then." In the 1970s employers did not have that option against workers, so they mostly had to raise wages or lose workers to other companies.Inflation 4-5%???? with gasoline up 160% in 4 years? the Government accounting is way more creative than the worst big business scams in history.WorldCom, HealthSouth, Tyco, Enron....
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Forney2008 - Peat
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Re: Oil back up over 5 today . . .
by Forney2008 » Thu 05 Jun 2008, 22:03:16
$this->bbcode_second_pass_quote('OilFinder2', '')$this->bbcode_second_pass_quote('Cashmere', 'Y')ou have gotta love the old gal! You just can't keep her down.
Man, this has really got to piss off the "it's a bubble" crowd. Just when they thought they heard the faint hissing of deflation, they realize that the sound they heard was the big man drawing in another huge breath, during which draw some slight deflation took place.
Soak it up DSEs.
Man, this has really got to piss off the "it's a bubble" crowd. Just when they thought they heard the faint hissing of deflation, they realize that the sound they heard was the big man drawing in another huge breath, during which draw some slight deflation took place.
Soak it up DSEs.
In case you didn't notice, the reason for the $5 rise today was because the head of the European central bank said they were thinking of raising interest rates, not because of some new fears about supply shortages. When Europe raises interest rates (while US interest rates remain unchanged or fall), that raises the value of the Euro relative to the US dollar, and conversely, the value of the dollar falls even more. Since oil is denominated in dollars, oil suppliers need still more dollars to get the same value for each barrel of oil. Thus the price of oil rises.
In other words, the rise was all about exchange rates.
The dollar only fell by one percent whereas oil rose by 5 percent so I do not buy into the dollar devaluation theory for today's move, unless it is the market "pricing in" further dollar devaluation, then you would be correct in that assumption. I have seen days recently where oil rose 2 to 3 bucks and the dollar rose by 1 percent or so. I am thinking the almost $6 rise today had a deeper reason for it. I'm thinking maybe traders realize that supplies are falling faster than demand is and thus bidding up the price of oil as a result. It sure seemed like the selloff after last weeks huge inventory decline was profit taking/manipulation via the "fog news B.S".
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Forney2008 - Peat
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![[smilie=BangHead.gif]](https://udev.peakoil.com/forums/images/smilies/BangHead.gif "BangHead")
Then stop driving to work, duh..... 
