Oil drops.....again

[Polar742]

I heard someone say $70/bbl by christmas, I thought YGTBFKM. Looks like he's smarter than me....It may not make 70, but it'll be closer than my guess.

http://news.yahoo.com/s/ap/20080806/ap_on_bi_ge/oil_prices

 

[Crism]

At least the airlines will end up in better shape...and gas prices will be low so everyone will be "happy"

 

[Polar742]

I'm guessing minimal impact on the consumers, but a bigger impact on equities and commodities.

However, I have no financial knowledge beyond basic financial literacy.....

 

[darrenf]

And any efforts put forth to find alternatives will wither and die. And then, 8 10 years from now, or maybe sooner, we will be in the same boat again. :banghead:

Make no mistake, I want the prices to come down, I just hope I am wrong and development of alternatives continues at a frantic pace.

 

[wheelsup]

I sold all my oil stuff a week or two ago. So that means it will go up now .

 

[skidz]

Good, cause I'm invested in DUG - ultrashort oil and gas, and I like watching it go up every day

 

[mwflyer]

oil always drops as we enter into fall/winter. it will just rise again next spring/summer, as driving demand increases again.

 

[smokey1]

This won't help the airlines. As soon as the price of oil drops, fares will drop. 70 dollars a barrel would be nice. But the airlines will still lose money. Just like they did when oil was 40, 50, 60, 70 dollars per barrel. where's the popcorn????

 

[cfii2007]

This won't help the airlines. As soon as the price of oil drops, fares will drop. 70 dollars a barrel would be nice. But the airlines will still lose money. Just like they did when oil was 40, 50, 60, 70 dollars per barrel. where's the popcorn????

I agree....and people will start dusting off their SUV's and driving them to the grocery store again.

 

[TheOneMarine]

CNBC analysts think it will be a 2 year dip followed by another surge that could reach up to $200/bbl. If these airline execs had ANY brain at all they would be wise to hedge at anywhere near $80/bbl until new technology can be used.

 

[falconvalley]

I love this. Oil is all of sudden indicating a "Bear Market". Have the writers of this article considered the fact that 90-140 dollars a barrel in less than a half year is a bit of a jump?

 

[USMC-SSGT]

Great..I prebought 800 gallons of propane when oil was $140/bbl. Watch it now end up costing me an extra 900 dollars.

 

[Maurus]

CNBC analysts think it will be a 2 year dip followed by another surge that could reach up to $200/bbl. If these airline execs had ANY brain at all they would be wise to hedge at anywhere near $80/bbl until new technology can be used.

All the more reason to drill now. Why we keep waiting is beyond me.

 

[TheOneMarine]

Won't have a market effect for ten years if not more. That money could go to something renewable. Besides, do you really want to spend the next ten years being furloughed or layed off every two? Americans are lazy but when they need something, necessity truly is the mother of invention. In ten years there COULD possibly be a lot of different energy sources, making the drilling uncessesary.

 

[falconvalley]

Won't have a market effect for ten years if not more. That money could go to something renewable. Besides, do you really want to spend the next ten years being furloughed or layed off every two? Americans are lazy but when they need something, necessity truly is the mother of invention. In ten years there COULD possibly be a lot of different energy sources, making the drilling uncessesary.

Problem is 150 a barrel just isn't convincing enough. From the necessity standpoint we're barely scratching the surface and the fact that oil has gone up so much and fallen about about half as much in a very short time only stregthens the opinion that it's not based on actual world supply. If we all really knew it and believed it, we wouldn't be trading on it.

 

[TheOneMarine]

Problem is 150 a barrel just isn't convincing enough. From the necessity standpoint we're barely scratching the surface and the fact that oil has gone up so much and fallen about about half as much in a very short time only stregthens the opinion that it's not based on actual world supply. If we all really knew it and believed it, we wouldn't be trading on it.

I'm not a trade bro, if I was, I wouldn't be furloughed :crazy:. But your right, a lot of it is probably not based on actual supply and demand but instead, fear and demand. We fear running out, so demand is assumed to increase based on less oil. In either case, a lot will depend on the average American, Indian, and Chinese folk on as to whether we keep killing demand, or as it has been said, do we go back to our 10 mpg Hummer H2's.

 

[kellwolf]

I think the key to alternative fuels is getting the automakers on board. If they stop selling 10 mpg Hummers and gas guzzling SUVs, well, it's obvious that people won't be buying them. They don't sell them in Europe b/c gas is so expensive over there, so they wouldn't sell. They got burned here BADLY over the last few quarters b/c gas prices shot up. Seems like it would be a smart move to shift to more fuel efficient vehicles anyway since they'll sell if gas is high or low. You've got people buying Priuses on the used market b/c they don't want to wait 4-6 months on a waiting list right now.

As for drilling, that's not gonna affect the price of oil on the supply side for a decade or more. The Dept of Energy said possibly THIRTY years in one report. Besides, there's already a ton of land set aside for drilling. The oil companies have decided it's not worth it there and have thrown their weight and lobbying behind getting other areas open. Why not drill where you can rather than where you can't?

 

[wheelsup]

I think the automakers want to be on board, they just can't turn the Titanic around in 4 quarters.

I hear this is Ford's new theme song:
[yt]R9L7CAN3YRk[/yt]

 

[MDPilot]

IBesides, there's already a ton of land set aside for drilling. The oil companies have decided it's not worth it there and have thrown their weight and lobbying behind getting other areas open. Why not drill where you can rather than where you can't?

Actually I believe it would be best to drill where the geologist says the oil IS, not where it ISN'T, regardless of where the land is that's "set aside"

 

[Prino]

Actually I believe it would be best to drill where the geologist says the oil IS, not where it ISN'T, regardless of where the land is that's "set aside"

and another liberal goes down :yup: