Thread: Oil trades below 100$ for the first time in five months.

Originally Posted by britmaveric

I just have a gut hunch - oil bubble has burst and we are on our way down to the correct levels.

That's just it, though. $50 is not the correct level. Oil is a finite commodity and with China and India swallowing it like there's no tomorrow the price certainly won't go below the high 70s.

^Don't buy the finite quantity argument (just a convenient reason to raise or keep prices high) I think there is plenty of oil and we won't run out anytime soon.

Originally Posted by bkkandrew

Originally Posted by britmaveric

I just have a gut hunch - oil bubble has burst and we are on our way down to the correct levels.

You don't get whats going on vis Lehman, Merrills etc., do you? USD is going to be toasted and price of oil will be in Euros before long.

So the $ strengthens and Euro gets trashed, then the $ also gets trashed.

That's been touted for a long time, SH had the idea, as does the whackjob, with other major players on the fence and working on the implications of undermining the $ over the long haul, and wreaking havoc with the global economy, ultimately giving them greater control. More effective than terror, which now becomes an addon rather than the primary weapon.

^

just outa idle curiosity Brit , whats the opposite of finite ?

Originally Posted by britmaveric

^Don't buy the finite quantity argument (just a convenient reason to raise or keep prices high) I think there is plenty of oil and we won't run out anytime soon.

quite, there is hardly an infinite amount

as to what there is, no, it will not run out but it will become more and more expensive to extract.

with oil at $90 a barrel, lots of uneconomic fields become economic, so can start producing.

Originally Posted by britmaveric

^Don't buy the finite quantity argument (just a convenient reason to raise or keep prices high) I think there is plenty of oil and we won't run out anytime soon.

Do you research or at least think about anything you post?

Nothing is infinite! Look at peak oil in America, when was it? - 1973, quite a while ago, sure there is more oil, but not cheap or abundant as in the past, unless you know better

^I think Brit believes he can shit the oil out of his arse...

So the low for the day was 93.71$ and will most likely test support at the 5's and the 0's on the way down.
Next stop 90, tomorrow.

People in the UK are still asking why the price of petrol is way above 1 quid a litre.

Oil is priced in $USs and the $US is gaining strength so when you do the sums the oil price is not actually dropping much in most countries.

Originally Posted by keda

Originally Posted by bkkandrew

Originally Posted by britmaveric

I just have a gut hunch - oil bubble has burst and we are on our way down to the correct levels.

You don't get whats going on vis Lehman, Merrills etc., do you? USD is going to be toasted and price of oil will be in Euros before long.

So the $ strengthens and Euro gets trashed, then the $ also gets trashed.

That's been touted for a long time, SH had the idea, as does the whackjob, with other major players on the fence and working on the implications of undermining the $ over the long haul, and wreaking havoc with the global economy, ultimately giving them greater control. More effective than terror, which now becomes an addon rather than the primary weapon.

Basing word trade on the value of one countries currency is crazy.
There will come a day when there will be a world currency based on a basket of currencies.

gee, I didn't know we had such a bunch of oil experts on TD

It would seem that oil will revert back to the 50 level, with a global slowdown, China worries about factory orders (lower European and US demand for goods), we could see Oil crashing back to real levels,

Further, with all the current exploration, new supply will come online soon, and that will flood the market with oil once more

Predicting oil at 200 based on no fundamentals is a bit silly IMO,

Originally Posted by DrAndy

quite, there is hardly an infinite amount as to what there is, no, it will not run out but it will become more and more expensive to extract. with oil at $90 a barrel, lots of uneconomic fields become economic, so can start producing.

Threw you a green for the wisdom

Originally Posted by britmaveric

oil producing countries have no incentive to tell the truth simply because it would lower their prices

of course there is plenty of oil, the whole trick is to keep the public in the dark and make them jump when you need them to

Originally Posted by mrsquirrel

People in the UK are still asking why the price of petrol is way above 1 quid a litre.

I think the simple answer to that is that it has very little do to with the cost of oil or refining the stuff but rather more about the fact that 75 pence of every single pound spent goes on tax and duty directly to the loons in government who then spend that money on their loony policies.

Originally Posted by Panda

Oil is priced in $USs and the $US is gaining strength

That was the case until all the companies failed this week!

Now the Dollar is sliding rather quickly and expats can forget about 35 baht to the dollar for a while, back down to 33 it goes.

Oil has moved in the opposite direction (along with gold) and could well be back abouve 100$ per barrel by the time you have read this.

Right now its 99.25$ and rising.