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Yippee — Oil tops $138

Discussion in 'Sports and News' started by JayFarrar, Jun 6, 2008.

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  1. Grimace

    Grimace Guest

    Wow.
     
  2. Sorry for not thinking Armageddon has arrived. This, too, shall pass.
     
  3. Grimace

    Grimace Guest

    Well I feel better.
     
  4. Maybe you should get a fallout shelter ready.
     
  5. Grimace

    Grimace Guest

    See, now you're sending conflicting signals.
     
  6. No, I mean maybe YOU should get a fallout shelter ready, judging from your reaction. Not me.
     
  7. Grimace

    Grimace Guest

    Why, what's going to happen to me?
     
  8. The Big Ragu

    The Big Ragu Moderator Staff Member

    Easy. Demand is high. Supply can't meet that demand. The disparity between supply and demand is increasing, so prices are going up. Get used to it. I'll bet anyone here, including all the people I engaged on that other thread, that we see $150 by the end of the year. Same thing I have said over and over again on these threads. The market has already factored in at least that price, and is expecting higher prices than that beyond.

    I await the "It's the speculators!" nonsense. Without those speculators, the hedgers--the airlines and anyone else exposed to oil prices in their businesses, which that oil analyst is talking about--who are trying to hedge now at $138 because they are anticipating $200 prices a year from now, have no market with which to buy themselves whatever protection they can purchase. You have no commodities market without speculation and it actually provides a bit of stability to the economy, even if it is a shitty economy that is going into the tank.

    Hell, if I was an airline, I'd be clawing away at everyone else in the market to try to lock in $138 for the future. It beats the hell out of waking up one day and finding your operating costs have doubled overnight. Better to get hammered gradually than all at once.

    Speculation doesn't create the price. Buyers and sellers do.
     
  9. trifectarich

    trifectarich Well-Known Member

    Supply and demand creates a spike of 13+ percent in two days?

    Guess again.
     
  10. The Big Ragu

    The Big Ragu Moderator Staff Member

    This hasn't been a 2 day phenomenon. And I'm not guessing.
     
  11. Michael_ Gee

    Michael_ Gee Well-Known Member

    This is why I feel that an actual attack on Iran, by either the U.S. or Israel, is unlikely. Some guy shoots his mouth off and the price jumps over $10 in a day. Actual shooting, and the price might jump $100 in a day.
     
  12. 21

    21 Well-Known Member

    And in other happy news, the Dow dropped 395 points today.
     
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