NYT/Reuters:Bull Gone from Oil Market, Price Hits $54("This is dam break")

[DeepModem Mom]

Bull Gone from Oil Market, Price Hits $54
By REUTERS

Published: April 7, 2005


NEW YORK (Reuters) - Oil prices dropped 3 percent on Thursday as rising crude stockpiles in the United States, the world's largest energy consumer, countered concerns over strong global demand.

Big money speculators, who are behind mammoth gains in the oil and commodities markets this year, unwound their long positions -- leading some analysts to wonder if the oil rally had finally peaked.

"This is it. This is the dam break," said Ed Silliere, analyst at Energy Merchant Intermarket Futures. "I'd have to say the bull market is done."

U.S. light crude (CLc1) settled down $1.74 to $54.11 a barrel, more than $4 below Monday's record $58.28. London Brent crude (LCOc1) fell $1.23 to $54.04 a barrel.

U.S. crude prices have surged about 25 percent this year....(But) the red-hot prices have attracted a tide of imports to the United States, building the nation's stockpiles to their highest in nearly three years and raising the possibility of a market reversal....


http://www.nytimes.com/reuters/business/business-markets-oil.html

[arcos]

1. Bullshit...

If it actually continues to go down it will be much in the same as it did in November... down to $45 for a couple of months and then rising even further than last time.

[The Gunslinger]

15. The oil market

Bush needs re-elected- the prices go down
Bush's approval plummetts - prices go down
they'll go back up for a while, then drop again before the 06 election.

[DeepModem Mom]

16. Thanks for posting, Gunslinger -- welcome to DU!

[Kimber Scott]

20. A guy on Ed Schultz today said the prices were all market speculation.

People are betting on futures. That's why the price is going up.

[htuttle]

2. Either they are vainly trying to jawbone the oil market down...

...or they are being as shortsighted as they were before the Iraq war (when gas futures were low).

Watch the 6-12 month gasoline contracts. If they go down, the market is being dumb. If not, this is just blather intended for effect.

[BlueEyedSon]

Short term moves = news & speculators... long term = Peak Oil(up, up, up!)

[Coastie for Truth]

10. Short Term Moves - Stochastic Random Walk + Hype and BS

Long Term Moves

UP - "Peak Oil"
DOWN - "Technological Response" to Peak Oil + Conservation"

Balance "Peak Oil" against "Technological Response" to Peak Oil + Conservation" ---------> The long term trend is UP.

[The_Casual_Observer]

3. One day it drops by a dollar and the "bull market" is done?

market reversal my ass.

[BlueEyedSon]

4. It's just like the internet stocks.. buy the dips.

[MARALE]

5. LOL he was joking, right???

Remember when it was the end of the world when it hit over $50? Now he says its a dam break???

[AuntiBush]

21. LUV the photo!

And those icons are a riot... not unlike what we should be doing.

[SpiralHawk]

6. Bush and his Oil Cronies

are responsible for skyrocketing gas and home-heating fuel prices.

They are responsible, and they are reaping massively obscene profits.

[notadmblnd]

14. you're right

they're doing an ENRON on us with petroleum.

[robertpaulsen]

7. Thank God! It's ONLY a piddling $54 a barrel.

What a bear market. I guess we don't have to worry about that Peak Oil conspiracy shit.

/sarcasm off.

[Al-CIAda]

8. Its a head fake to quell the growing concern. All about managing

perceptions.

$60 by the end of summer IMO

[Speck Tater]

9. $60 by end of summer? Try $60 by end of next week! (NT)

[Nordmadr]

12. It will be $70 by November. N/T

[Nordmadr]

11. Yup, nothing to worry about now folks. Everything is under control.

Oil prices have now dropped to a great low of $54 a barrel (like the article said, a mere 25% increase from last year).

Oil prices fluctuate up a bit, then they fluctuate down a bit, but you can not deny they are certainly trending up. This is going to continue folks. Please wake up. Don't just not think about it because it is too terrible to imagine. You do yourself, your family, your community, and your planet a diservice. We are reaching the point where we will not be able to meet demand. Period. The EIA just put something out yesterday or today with revisions for Q4 demand this year. They raised demand by an additional 200,000 BPD. This additional amount now brings the DEFICIT amount of oil predicted at 700,000 BPD in Q4 of THIS YEAR. That means there will be 700,000 BPD to little to satisfy everyone. Wanna guess what that will do to the markets and the cost of oil? Come on...guess.

Don't just believe me though...



http://www.nasdaq.com/asp/quotes_news.asp?cpath=20050407\ACQDJON200504070945DOWJONESDJONLINE000735.htm&

Olaf

P.S. You'll have to copy and paste the full url. I don't know how to do the "tiny" url thing.

[mmonk]

13. The speculation

will be wrung out, but where oil settles is anyone's guess but will be historically at a higher level than when this run started.

[Tace]

17. Bushco Needs High Oil Prices To Keep Petrodollars Flowing Into

US markets, and profits flowing into Big Oil.

[Psephos]

19. The dollars *are* flowing, but out of US markets, not in

Big Oil is happy. But no one else is.

Peace.

[Media_Lies_Daily]

18. Check out 20th Century history prior to each war...oil reserves always....

...grew dramatically prior to a war being waged.