[oneplain1]

$this->bbcode_second_pass_quote('alokin', 't')he story tells more about the state of the US economy than of oil. look at bloomberg: bloomberg

[DantesPeak]

US oil inventories are going to continue their decline the next few weeks to low levels. One bad Gulf of Mexico tropical storm and there won't be enough oil to go around the US.

It's hard for me to imagine this is the beginning of any major price drop.

[shortonoil]

$this->bbcode_second_pass_quote('Hester', 'S')ometimes man, this place. Just gets a little too into it's own world.

[DantesPeak]

$this->bbcode_second_pass_quote('Hogan', '')$this->bbcode_second_pass_quote('DantesPeak', 'U')S oil inventories are going to continue their decline the next few weeks to low levels. One bad Gulf of Mexico tropical storm and there won't be enough oil to go around the US. It's hard for me to imagine this is the beginning of any major price drop.

[alokin]

shortonoil, who do you think is able and willing to sell so much futures to stop the stock market to break down? And stupidly asked, do you think if oil is cheaper the market would be stabilized (and why can buyers believe in such a sudden drop?).

I read on bloomberg that oil is steady now.

This all is very much like in the theory that if the plateau hits prices get more volatile. And even that I only watch this for about 10 month now prices got much more volatile recently.

[shortonoil]

$this->bbcode_second_pass_quote('DantesPeak', ']')The official MOL is 270 million, but that is from a dated report. The figure may be closer to 285 million, and as shortonoil previously noted, would seasonally fluctate. My WAG is falling below 285 million would result at least in some kind of supply disruption somewhere in the US.

[shortonoil]

$this->bbcode_second_pass_quote('alokin', 's')hortonoil, who do you think is able and willing to sell so much futures to stop the stock market to break down? And stupidly asked, do you think if oil is cheaper the market would be stabilized (and why can buyers believe in such a sudden drop?). I read on bloomberg that oil is steady now.

[yesplease]

$this->bbcode_second_pass_quote('emersonbiggins', 'P')erhaps if "record high" was accompanied by "OMFG!!1!11! - like higher than it's ever been!," I'd trust that the reaction by J6P would be on a similar scale as he will undoubtedly express with "drops by most in 17 years." Hell, perhaps it isn't worth my arguing about...

[Ferretlover]

$this->bbcode_second_pass_quote('yesplease', ' ')I can't say I ain't as guilty as anyone else. I suppose the only way to know for certain would be to assess the impact of how people view time periods. Is "ever" seen as more or less powerful than a couple decades?

[ThereWillBeMoreBlood]

You've gotta be kidding me. Seems like every day for the past six months we've been hearing/reading news stories on a daily basis about how oil has set a new record, and all of a sudden MSM reporting on oil's biggest drop in 17 years is some sort of cornucopian conspiracy? This site gets better by the day.

[emersonbiggins]

$this->bbcode_second_pass_quote('ThereWillBeMoreBlood', 'Y')ou've gotta be kidding me. Seems like every day for the past six months we've been hearing/reading news stories on a daily basis about how oil has set a new record, and all of a sudden MSM reporting on oil's biggest drop in 17 years is some sort of cornucopian conspiracy? This site gets better by the day.

[Micki]

$this->bbcode_second_pass_quote('', 'Y')ou've gotta be kidding me. Seems like every day for the past six months we've been hearing/reading news stories on a daily basis about how oil has set a new record, and all of a sudden MSM reporting on oil's biggest drop in 17 years is some sort of cornucopian conspiracy? This site gets better by the day.

[shortonoil]

$this->bbcode_second_pass_quote('emersonbiggins', 'I')'m just not a big fan of qualifiers, if they're used selectively and inconsistently. No conspiracy here - that's all in your head. But thanks for playing!

[Olaf]

$this->bbcode_second_pass_quote('Hogan', 'D')antesPeak, by the way, I think I found you a new avatar:

[flash width=399 height=278]http://d.yimg.com/us.yimg.com/p/afp/20080713/capt.cps.mze13.130708154802.photo00.photo.default-512x357.jpg?x=400&y=278&sig=yJUHsKvxqO_jrTSEB1K10Q--[/flash]

That Iranian oil worker looks like someone out of 1970's Buck Rogers.

[Graeme]

Betting on Oil's Return to Earth

$this->bbcode_second_pass_quote('', 'W')hen will oil's visit to the stratosphere end? Almost to a man (and woman), the oil watchers of Wall Street say the question cannot be answered, even though the price per barrel slid more than $10 on July 15 and 16. There are just too many factors propping up crude even to contemplate a dramatic decline.

But Edward L. Morse, Lehman Brothers' (LEH) chief energy economist, says the oil bubble (he dubs it Oil Dot-com) will burst by New Year's. Not only that, he predicts a plunge to about $93 a barrel. Pretty audacious as prognostications go, at a time when Goldman Sachs (GS) foresees $200 a barrel. To that Morse just replies that he's the one talking sense. "We are trying to keep our heads in a wild market," he says.

Morse is the most prominent oil contrarian on Wall Street. Before joining Lehman two years ago, he taught international monetary policy at Princeton University, was Deputy Assistant Secretary of State for international energy policy in the Carter Administration, co-founded consultants PFC Energy, and was publisher of Petroleum Intelligence Weekly. "He likes to be a provocateur," says Frank Verrastro, director of energy at the Center for Strategic & International Studies in Washington, who served with Morse under Carter.

The 66-year-old Morse gives several reasons for being bearish. First, oil has long been cyclical. Why should the pendulum stop now? Second, Morse thinks China's go-for-broke industrial economy is slowing, leading to a "radical" reduction in its oil demand after the summer. Third, he foresees a big buildup in oil inventories this fall and, longer term, a greater flow of crude as new deepwater drilling rigs reach equipment-starved producers in the Gulf of Mexico. Finally, 13 million barrels a day of new refinery capacity will be available by 2013, making hard-to-process crudes more marketable.

[Micki]

$this->bbcode_second_pass_quote('', 'M')orse thinks China's go-for-broke industrial economy is slowing, leading to a "radical" reduction in its oil demand after the summer.

[yesplease]

$this->bbcode_second_pass_quote('', 'J')uly 18 (Bloomberg) -- U.S. fuel consumption fell 3 percent in the first half of 2008, the biggest decline for the period in 17 years, as high prices and a slowing economy curbed demand, an oil industry report today showed.
[...]
Crude oil imports fell 2.5 percent from a year ago, and gasoline imports dropped about 10 percent, the report said.