[Forney2008]

Look at that purrty looking waterfall toward the last 10 minutes of oil trading. It sure seems like traders figure demand from Asia(China in particular) is about to drop faster than supplies dropng. The only thing that could put a solid floor under oil prices is a huge swirl forming in the Gulf of Mexico because the global economy appears headed quickly for a deep recession.

[nocar]

adding to Strider's list: In Alberta they can not find enough skilled people to run all the rigs. In other oil places they do not have enough rigs.

nocar

[Starvid]

I guess the Alberta stuff has to do with the new oil royalty regime, and the rather startling improvements in the North American NG situation.

[chuck6877]

Well folks,

That flag formation broke down.

What usually happens after a flag formation breaks to the down side?

I'm betting we ATLEAST go down to the 40 day moving average (blue line below) which has been support for the last few months. [web]http://stockcharts.com/h-sc/ui?s=$WTIC&p=D&b=3&g=0&id=p06084784910[/web]

Is this when the long overdue major correction(technically) to the 200 dma happens???? I'm betting since things are so strong fundamentally that maybe it won't be now but ya never know. I think it might be after the summer....

[something_awfull]

Could this having anything to do with it?

$this->bbcode_second_pass_quote('', '[')b]
China Lifts Fuel Prices, And Oil Falls In Response

BEIJING -- China, widely seen as the one nation most responsible for the soaring demand and price of oil in recent years, reminded the world it can nudge both in the other direction as well.

The government, which controls domestic fuel prices, raised its base price for gasoline by 17% and diesel by 18%, a move that global oil traders quickly concluded could diminish the country's voracious appetite for fuel. Benchmark crude oil on the New York Mercantile Exchange fell $4.75 a barrel, or 3.5%, to $131.93.
WSJ

[smallpoxgirl]

$this->bbcode_second_pass_quote('chuck6877', 'W')ell folks,

That flag formation broke down.

What usually happens after a flag formation breaks to the down side?

[DantesPeak]

$this->bbcode_second_pass_quote('smallpoxgirl', '')$this->bbcode_second_pass_quote('chuck6877', 'W')ell folks,

That flag formation broke down.

What usually happens after a flag formation breaks to the down side?

[chuck6877]

$this->bbcode_second_pass_quote('smallpoxgirl', '')$this->bbcode_second_pass_quote('chuck6877', 'W')ell folks,

That flag formation broke down.

What usually happens after a flag formation breaks to the down side?

[Sys1]

Oil prices are going down because of the ending (well, not totally, in fact, but this is the direction) of subsidized gazoline in China. Another way to say it : demand destruction.
As someone said on another thread, demand destruction means economy destruction.

But as demand lags after supply, there won't be enough demand destruction to really ease pressure on the barrel of oil... I bet oil prices will go though... a plateau

[Sketh]

$this->bbcode_second_pass_quote('', ' ')LONDON (Dow Jones)--The Organization of Petroleum Exporting Countries is expected to pump around 900,000 barrels a day more in June compared with the previous month due to increased output from Saudi Arabia and Iran, tanker tracker Petrologistics said Friday.

Output from all 13 OPEC members is expected to average 32.8 million barrels a day in June, up from 31.9 million barrels a day in May, the Geneva-based tracker said.

Saudi Arabia's oil production is projected to reach 9.45 million barrels a day compared to 9 million barrels in May.

"The Saudis will do their bit...and it will probably go up a bit further in July," said Petrologistics head Conrad Gerber.

Iran's supplies were forecast to reach 3.98 million barrels a day, from 3.49 million barrels a day in May.

The country has sold "quite a bit" from its floating oil storage volumes, which stood at around 40 million barrels in May, Gerber said. He expected Iran's crude storage to clear out to its typical commercial volumes of around 10 million barrels by the end of the summer.

[Sketh]

$this->bbcode_second_pass_quote('', '[')b]OPEC president rules out output hike
ALGIERS (Thomson Financial) - OPEC president Chakib Khelil said on Friday it was illogical and irrational to ask the oil cartel to increase output so as to take the pressure off soaring prices, the Algerie Presse Service news agency reported.

[skiwi]

Quick rebound to $135.64 following this mornings New York Post Headline

U.S. Says Exercise by Israel Seemed Directed at Iran

$this->bbcode_second_pass_quote('', 'W')ASHINGTON — Israel carried out a major military exercise earlier this month that American officials say appeared to be a rehearsal for a potential bombing attack on Iran’s nuclear facilities...

[Peleg]

Oil is now band (range) trading between $130 and $138. That's all. Everyone can use whatever news items they want to justify, in each day there are good and bad stories so take your pick. The fact is the people who know how to trade are extracting a lot of wealth (or so they think) out of that volatility.

This news piece that Leanan posted about the guy saying peak oil is a myth and CERA only found an average 4.5% decline in it's study of 800 fields. that kind of nonsense just confuses people. 4.5% per year is greater than a linear 4.5% drop per year which leaves us down over 20% in five years. What planet exactly are we living on? It sure isn't Earth.

[mcgowanjm]

$this->bbcode_second_pass_quote('DantesPeak', '')$this->bbcode_second_pass_quote('smallpoxgirl', '')$this->bbcode_second_pass_quote('DantesPeak', 'F')unny how they don't mention oil/product imports were down 11.4% as compared to last year used the same criteria as above.

[Duende]

We're close to $138 today. Just like that, flirtation with $140.

The minute you let your guard down...

[biofuel13]

Well the Saudi's jibber-jabber didn't seem to have much effect over the weekend.....we may have a new record by the end of the day!

[RdSnt]

The Saudi's have shot their wad and can no longer "talk" the price down. They have repeated said they were going to increase production and have not done so. We simply don't believe them anymore.

Demand destruction is not going to be nearly as effective as it is thought.
Countries like China, where there is a very strong pent-up desire to drive are not inclined to step back. Keep in mind countries like this are quite use to sacrifice and so will sacrifice to continue to drive.
In the US driving is considered an essential service, and for most of the population it actually is. Unless there is a wholesale collapse of the US economy, bringing the whole thing to a sudden stop, I don't see much demand destruction occurring.
Mind I am actually expecting a sudden and very nasty US economic collapse. In which case gas prices will be the least of their worries.

[RdSnt]

$this->bbcode_second_pass_quote('Drifter', '')$this->bbcode_second_pass_quote('RdSnt', 'T')he Saudi's have shot their wad and can no longer "talk" the price down. They have repeated said they were going to increase production and have not done so. We simply don't believe them anymore.

Demand destruction is not going to be nearly as effective as it is thought.
Countries like China, where there is a very strong pent-up desire to drive are not inclined to step back. Keep in mind countries like this are quite use to sacrifice and so will sacrifice to continue to drive.
In the US driving is considered an essential service, and for most of the population it actually is. Unless there is a wholesale collapse of the US economy, bringing the whole thing to a sudden stop, I don't see much demand destruction occurring.
Mind I am actually expecting a sudden and very nasty US economic collapse. In which case gas prices will be the least of their worries.