[Revi]

Something is going on. It's going straight up again:

http://www.321energy.com/

Now I don't feel so bad about locking in to heating oil at almost $5 yesterday.

It's going to be quite a ride...

[strider3700]

Yesterday the price dropped on promises to pump more and discussion about economics dealing with the problem of high prices. Today numbers reporting actual physical amounts said things are bad and we've heard this other lip service before. Price goes up.

In the end the economy is controlled by the physical and not the other way around.

[BigTex]

I wish I had a better feel for what a resistance point might look like in this thing.

With dollar devaluation and the long term peak-related price pressure, I just have no idea where it might even plateau.

I just don't buy that speculation explains any of this. We are talking about a consumable commodity. Once it's delivered, it's consumed. Thus, unlike gold or silver for example, there is not the problem of speculators buying a bunch today with the hope of reselling it in 12 months.

There may be some speculation, but it seems like with a consumable commodity with relatively inelastic demand (so far anyway), there isn't a lot of risk of a glut accumulating somewhere in the system that could crash the price down the road.

Can anyone point to something that could shave $30 or more off of the current price? I can't think of any.

Even if serious demand destruction began to occur, there is still the dollar devaluation and long term commodities bull market forming tailwinds pushing the price of oil higher.

[vision-master]

$this->bbcode_second_pass_quote('thor', 'T')here's a major crap storm brewing, I can feel it.

[vision-master]

The gal at the gas station today said, "it's going up another $.20" by tomorrow.

[lowem]

Good show overnight, looking out from my timezone. NYMEX crude oil hit a high of $138.30 and is now hovering around $136 at the moment.

Did anyone manage to buy in around $130 support?

[dorlomin]

BP chief says tight supplies not speculators to blame for oil price increase.
link

[mcgowanjm]

$this->bbcode_second_pass_quote('BigTex', 'I') wish I had a better feel for what a resistance point might look like in this thing.

Can anyone point to something that could shave $30 or more off of the current price? I can't think of any.

Even if serious demand destruction began to occur, there is still the dollar devaluation and long term commodities bull market forming tailwinds pushing the price of oil higher.

[mcgowanjm]

Note:

Not a word this AMon any strikes/protests.

But Boy Scout Camp in Iowa all over.

"In summary, a sharp rise in US and world interest rates is the best way to solve the problem of spiraling energy and commodity prices, which will probably not solve itself. If that doesn't work or is "politically impossible" it's time to prepare the 82nd Airborne for jungle warfare in the Orinoco Basin."

Martin Hutchinson is the author of Great Conservatives

[smallpoxgirl]

$this->bbcode_second_pass_quote('mcgowanjm', '"')In summary, a sharp rise in US and world interest rates is the best way to solve the problem of spiraling energy and commodity prices, which will probably not solve itself. If that doesn't work or is "politically impossible" it's time to prepare the 82nd Airborne for jungle warfare in the Orinoco Basin."

[threadbear]

$this->bbcode_second_pass_quote('smallpoxgirl', '')$this->bbcode_second_pass_quote('mcgowanjm', '"')In summary, a sharp rise in US and world interest rates is the best way to solve the problem of spiraling energy and commodity prices, which will probably not solve itself. If that doesn't work or is "politically impossible" it's time to prepare the 82nd Airborne for jungle warfare in the Orinoco Basin."

[BigTex]

Long term bond rates will eventually start to tick up, and the Fed can't do anything about that.

That's going to hurt.

[vetusfirma]

I really don't see how we are going to cope with $4 gas. If you look at what is happening in Europe, and look at the rise in food prices here, you gotta think its getting hard for a lot of people. Our consumer economy will shrink as a result and jobs will go away. The lower end will go first, so people will be losing their 'make ends meet' second job and will spend even less. Unemployment in europe is well over 12%, (can't remember exactly) and we could see those levels by then end of 2009. Congress is already talking about extending unemployment compensation. That just makes the printing presses run faster to make more money, meaning inflation galore. Mr. Good bar has left the building.

[Twilight]

BBC: Oil price falls in volatile trade

$this->bbcode_second_pass_quote('BBC', 'S')weet light crude oil declined more than $3 to $132 a barrel in New York.

Oil prices have been volatile recently, hitting a high of $139.12 on Friday but falling $7 on Monday.

But the inflation-adjusted price is not as high as record peak of $101.70 in 1980 against a backdrop of war between Iraq and Iran.

[Peleg]

$this->bbcode_second_pass_quote('Twilight', '[')url=http://news.bbc.co.uk/1/hi/business/7451551.stm]BBC: Oil price falls in volatile trade[/url]

$this->bbcode_second_pass_quote('BBC', 'S')weet light crude oil declined more than $3 to $132 a barrel in New York.

Oil prices have been volatile recently, hitting a high of $139.12 on Friday but falling $7 on Monday.

But the inflation-adjusted price is not as high as record peak of $101.70 in 1980 against a backdrop of war between Iraq and Iran.

[socrates1fan]

$this->bbcode_second_pass_quote('vetusfirma', 'I') really don't see how we are going to cope with $4 gas. If you look at what is happening in Europe, and look at the rise in food prices here, you gotta think its getting hard for a lot of people. Our consumer economy will shrink as a result and jobs will go away. The lower end will go first, so people will be losing their 'make ends meet' second job and will spend even less. Unemployment in europe is well over 12%, (can't remember exactly) and we could see those levels by then end of 2009. Congress is already talking about extending unemployment compensation. That just makes the printing presses run faster to make more money, meaning inflation galore. Mr. Good bar has left the building.

[smallpoxgirl]

$this->bbcode_second_pass_quote('socrates1fan', 'T')he people who have gardens out of need and who already walk or bike miles and who can't afford most luxuries anyway.

[Novus]

$this->bbcode_second_pass_quote('smallpoxgirl', 'T')he top 0.01% who actually owns everything in America....they'll carry on like nothing happened.

[smallpoxgirl]

$this->bbcode_second_pass_quote('Novus', ' ')after the emperor was deposed by the Vandals in 476AD.

[dorlomin]

The dollar is trading at $1.53 vs the euro, yet oil is pretty much above $136. I suspect that we are near a record in oil priced in euro's.