Oil soars on $150 per barrel July 4 prediction

[UpInArms]

Source: Associated Press

Oil is trading above $134 per barrel on an analyst prediction that prices could hit $150 by July 4.

Prices jumped $6.43 Friday shortly after Ole Slorer of Morgan Stanley released a report saying he expected a "short-term spike in oil prices," on the back of rising demand in Asia, Dow Jones Newswires reported.

By the afternoon in Europe, light, sweet crude for July delivery was up $6.43 to $134.22 in electronic trading on the New York Mercantile Exchange.

On Thursday, the contract rose $5.49 — its biggest single-day price increase in Nymex history — to settle at $127.79 a barrel.

Read more: http://news.yahoo.com/s/ap/20080606/ap_on_bi_ge/oil_prices?_ylt=AiDfub94IVwXKFmZOInoGnib.HQA

[commander bunnypants]

1. wonder what the white housepRESIDENT

is gonna do

nothing

CB

[BigDaddy44]

34. What do you recommend he do?

[xchrom]

2. recommend

[SpiralHawk]

3. "Perfect." - VP Dickie 'Five Military Deferments' Cheney & republicon oil cronies

[raccoon]

4. These analysts need to keep their mouths shut.

I know, fat chance of THAT happening.

[emmadoggy]

6. No kidding. It's a self-fulfilling prophecy....

someone says what they think it's going to do, and POOF! just like that, it happens.

This is insane. I remember just a few months ago when it hit $90 and then $100. It is just nuts that it is this high in such a short time. Wasn't oil only around $30-something when Shrub took office? Hard to imagine that it has gone up by what was the price of a whole barrel in 2001 in just a few short months.

[no_hypocrisy]

7. Ditto.

[bhikkhu]

45. "The markets rose today on predictions that the markets would rise"

That sort of thing. Definitely confuses any underlying issues.

[lutefisk]

10. Reminds me of the way analysts manipulated stock prices during the tech stock bubble

Some analyst would just issue some unsupportable, speculative opinion and the stock in question would immediately skyrocket. There are some people becoming very, very rich from all this.

Sure, there are serious issues with oil supply going into the future, but the manipulation since Chimpy invaded Iraq has been stunningly bold.

[raccoon]

16. Ding, ding, ding! We have a winner!

"There are some people becoming very, very rich from all this."

[DS1]

5. Is there any other business that can do this?

Imagine going to your baker, and finding out that because he thinks a loaf of bread will cost 10 dollars next week, he's raising prices to 8 dollars now.

:crazy:

[Delphinus]

8. Wish I could do this to my paycheck.

Bet *everybody* does!

[Blue_Tires]

54. that's a cool plate in your sig, DS1

wish i'd thought of it....

[liberal N proud]

9. July 4th is a holiday and gouging can be expected

The oil companies are noted for spiking prices at holidays under the guise of supply and demand.

Why wouldn't they take every opportunity to jack the price up even further while they still have good ole' buddy bu$h in the White House to protect them from their criminal activities.

[dmosh42]

11. After watching the commodities hearings....

we would know that's the code for the hedge funds to bid up the oil with Goldman Sachs, who allegedly is controlling almost 30% of oil futures. How? They only need to put up 5% on margin buying. All part of the fix!

[Phoonzang]

12. Oh for crying out loud...it's just a dude

making predictions. People need to calm the fuck down. If some analyst so much as sneezes all these speculators go into a panic.

[UpInArms]

14. yeppers, it's just a "dude" but the markets are responding

and I thought you might like to know what was going on

:hi:

[Phoonzang]

15. To be clear, I wasn't being critical

of your post, but of the reaction of the markets. I do indeed think people need to know.

[UpInArms]

17. I didn't take it personally -

I just hate getting run over by trains

:hi:

[KillCapitalism]

18. Problem is...

these dudes effectively set the prices by saying such things. They WANT oil prices to go to $150 and far beyond that. They know that publicly issuing such warnings will achieve their ends.

Greedy son of a bitches.:mad:

[UNCLE_Rico]

21. Whoever 'they' is may 'want' this ... BUT ...

There is a WHOLE HUGE contingent of OTHER 'THEYS' that are extremely powerful who DO NOT WANT this AT ALL.

These oil prices ripple across the entire economy, and bite into the profits of literally hundreds of thousands of other businesses, many of them large corporations.

If anyone thinks it's as simple as 'the speculators are bidding and 'proclamating' their way to huge fortunes' without there being ANY actual fundamental supply/demand forces (i.e. PEAK OIL, falling dollar, etc) at work in the background, then I suspect they are going to be in for a rather rude awakening in the near future, as I doubt prices will EVER fall below $100, and will continue to march upward until such time as ... well ... who knows what will stop them. Frankly I'm not sure anything will stop the GENERAL trend upward.

Granted, on the surface the 'tech bubble' might seem like a good analogy, but I seriously doubt that this oil situation is a simple as that paradigm suggests.

[bossy22]

24. correct

it is also the reason we have such high prices NOW...these speculators and speculations are killing us

[Telly Savalas]

40. I know a lot about the economy and I have a pretty good hunch

that the bird shit caked on my car will be selling for $200/oz by early August.

[Mrs. Overall]

13. Is this analyst named Carnac?

[Barrett808]

19. Nice post today on reflexivity over at The Oil Drum:

Peak Oil and Reflexivity and Peak Oil
http://www.theoildrum.com/node/4100

[LTR]

20. Fucking Wall Street speculators are driving the price up

:mad:

Oil should actually be much less, yet these greedy pricks are willing to bring this country to a grinding halt in order to stuff their pockets.

Fuck them.

[Xenotime]

48. This sounds criminal to me.

[Zynx]

22. That's so much BS.

This is just like when an analyst made a $1000 a share prediction on Qualcomm that sent it up $200 a share in a day.

[hunter]

23. Once the wall of peak oil was obvious to the people driving this market...

...after so many "producers" claimed they could increase extraction rates but didn't, even though there were very good reasons to do so, then the market made a violent turn. These high prices are the screeching tires and g-forces of a car spinning out of control.

We're already crashing, the only question now is how bad the damage will be when the dust settles.

[neverforget]

27. You're right. Speculation may play a part in this run-up but the fact is

that the easy oil has all been found and tapped; what's left is the hard to get to oil which is extremely expensive to extract.

[maxsolomon]

25. At the same time, demand is plummeting

except for that US Military...

end the war, end the oil supply crisis. we're paying for all that oil with our grandkid's taxes.

[Zynx]

33. There is no supply crunch at least in the short run.

This is a Wall Street manufactured crisis just like the housing boom and the NASDAQ bubble before that.

[bhikkhu]

46. The day to day price fluctuations may be, but...

http://www.energyinvestmentstrategies.com/2008/06/02/global-net-oil-exports-have-declined-for-two-years/

No "doom" is needed to make the point that lifestyles (consumption) should change, in everyone's best interests.

[Delphinus]

47. And paying for it with the lives of our

own children and the lives of the Iraqi civilization. End this war now.

[Lone_Star_Dem]

26. Now the freakish spike makes sense

Actually, it doesn't makes sense, but at least I understand what's behind it.

[Terry in Austin]

28. A fix! OMG, I need a fix!

All those evil greedy sumbitches getting between me and my skag...

(*sigh*)

[UpInArms]

29. updating: July crude reaches a record $139.01/brl in electronic trade

01. July crude reaches a record $139.01/brl in electronic trade
2:30 PM ET, Jun 06, 2008

02. Crude futures reach limit gain on Nymex for first time
2:28 PM ET, Jun 06, 2008

03. July crude last up $11.01 at a Nymex record of $138.80/brl
2:28 PM ET, Jun 06, 2008

[SeaLyons]

31. can they not regulate trading on crude??

[UpInArms]

32. I believe the word would be "will" - not "can"

there is no regulation under this mal-administration

:hi:

[BigDaddy44]

35. How do you propose that the US regulate a world wide market?

[SlicerDicer-]

50. Are you brain damaged?

Look at the 1970s when things were capped.. My Fatha told me stories about GAS LINES!!! There was no gas..

Enjoy history plz

[whistle]

30. The greed driver speculators grabbing all they can before the party ends

[customerserviceguy]

51. They all think they can get out

with just one more sucker behind them, before it all collapses. That's the way bubbles work.

[lib2DaBone]

36. Ripple Effect...

If they don't get control of oil prices soon..we are all 'friggin doomed. (Hell, we may already be doomed because of the damage Bush has done.) Yesterday's announcement by United Airlines and Continental Airlines cutting flights and laying off thousands, is just the beginning. Supermarkets and food vendors are going to have to add fuel surcharges to EVERYTHING.... and guess who is going to pay? (Quick.. grab your wallet and act surprised.) Hate to sound like a Party-Pooper.. but we are on a runaway train and there is no one at the controls.

[Hugabear]

37. This is absolutely fucking STUPID

Do these idiots realize that they are CREATING the situation that was predicted? This is a perfect example of a self-fulfilling prophecy if there ever was one!

This should be PROOF that prices are artificially high.

[mcollier]

38. We must do more that simply talk

Action is required to make a real difference.

[Telly Savalas]

39. I'm gonna go buy some tulip bulbs

We've gone from dot-coms to real estate to oil. When the oil bubble bursts, I'm thinking all the big money will go to tulip bulbs like it did in the 17th century Netherlands.

[hunter]

42. Anyone can grow tulip bulbs. Or breed rabits. Or make an internet shopping carts.

Or build houses.

But nobody's found any easy oil lately, at least not enough to make any difference.

The party has to end sometime. If not now, then soon.

[Telly Savalas]

43. The radical increase in price we've seen in the last year or so

is not a function of easy oil suddenly drying up. That would only happen if a rapid decline in supply occurred and caught everyone by surprise, which is not the case.

Peak oil is a very real phenomena, and our energy policy should reflect it. But the $138 a barrel today is the result of a speculative bubble, not peak oil.

[Barrett808]

41. Please, y'all, word up on PEAK OIL before you blame speculators

http://www.theoildrum.com/node/4100

"It's the geology, stupid."

[WheelWalker]

44. They're using ack-ack on the Golden Goose.

[ohio2007]

49. Drill Here, Drill Now, Pay Less Campaign

Drill Here, Drill Now, Pay Less Campaign
The citizens of the United States overwhelmingly support and demand opening up oil and oil shale resources that are currently off-limits thanks to Congress.

If you are an American citizen and agree with this please go to AmericanSolutions.com and sign the "Drill Here, Drill Now, Pay Less" petition.



one minute video
http://www.liveleak.com/view?i=1d7_1212844238

Some may be happy sending their gas $ to south america OPEC nations but the time for changes has come imo
to stop supporting OPEC regimes. All OPEC regimes

[SergeyDovlatov]

52. I believe it is related to impending attack on Iran

http://anti-war.com/justin/?articleid=12944

Olmert: The Iranian threat must be stopped by all possible means," Olmert said in a speech to the American Israel Public Affairs Committee

Bush: "Permitting the world's leading sponsor of terror to possess the world's deadliest weapons would be an unforgivable betrayal for future generations. For the sake of peace, the world must not allow Iran to have a nuclear weapon."

Obama: "I will do everything in my power to prevent Iran from obtaining a nuclear weapon. Everything in my power. Everything."

[Acadia Blue]

53. I fear for my pitious stocks. Things may stay this way...down...