Yippee — Oil tops $138

[JayFarrar]

Buy gas now, beat the rush.

http://www.nytimes.com/2008/06/07/business/07oil.html?_r=2&hp&oref=slogin&oref=slogin

Oil prices had their biggest gains ever on Friday, jumping nearly $11 to a new record above $138 a barrel, after a senior Israeli politician raised the specter of an attack on Iran and the dollar fell sharply against the euro.
...
“I don’t know how else to say it, this is not a bubble,” Jan Stuart, global oil economist at UBS, said. “I think this is real. There is a whole bunch of commercial buyers out there who are spooked and are buying. You are an airline, right now, you’re scared. But I don’t see who would buy at these prices unless they need to.”

I await Ragu's explanation as to why this is happening.

 

[Mizzougrad96]

Our gas prices have actually come down 10 cents in the last week.

 

[JayFarrar]

It was down in my berg as well, but I think even Sam's will be over $4 by the end of the weekend. Glad I filled up yesterday.

 

[2muchcoffeeman]

Our gas prices have actually come down 10 cents in the last week.

Up 15¢ this week here.

 

[Football_Bat]

Check **** Cheney's phone records to Tel Aviv.

 

[KevinmH9]

Ranges anywhere from $3.89-$4.10 for regular unleaded over in NH, mostly southern, though.

 

[TheSportsPredictor]

And it's only going to go up from here.

 

[KevinmH9]

And it's only going to go up from here.

Save your grease and other food oils...It's only a matter of time before someone begins doing some MAJOR research into fueling everyday cars to run off that stuff.

 

[Grimace]

THE DAY OF RECKONING IS HERE!

REPENT!

 

[KevinmH9]

THE DAY OF RECKONING IS HERE!

REPENT!

While I'm not overly worrying by any means at this very moment. I'm finding myself becoming increasingly concerned with how this economy and atmosphere will look like for our children and our children's children.....

 

[Fudgie the Whale]

THE DAY OF RECKONING IS HERE!

REPENT!

While I'm not overly worrying by any means at this very moment. I'm finding myself becoming increasingly concerned with how this economy and atmosphere will look like for our children and our children's children.....

We won't be around then, so who cares?

 

[Lyman_Bostock]

THE DAY OF RECKONING IS HERE!

REPENT!

While I'm not overly worrying by any means at this very moment. I'm finding myself becoming increasingly concerned with how this economy and atmosphere will look like for our children and our children's children.....

We won't be around then, so who cares?

Nothing's ever as bad as it seems or as good as it seems.

 

[Grimace]

Nothing's ever as bad as it seems or as good as it seems.

Wow.

 

[Lyman_Bostock]

Nothing's ever as bad as it seems or as good as it seems.

Wow.

Sorry for not thinking Armageddon has arrived. This, too, shall pass.

 

[Grimace]

Well I feel better.

 

[Lyman_Bostock]

Well I feel better.

Maybe you should get a fallout shelter ready.

 

[Grimace]

See, now you're sending conflicting signals.

 

[Lyman_Bostock]

See, now you're sending conflicting signals.

No, I mean maybe YOU should get a fallout shelter ready, judging from your reaction. Not me.

 

[Grimace]

Why, what's going to happen to me?

 

[The Big Ragu]

Buy gas now, beat the rush.

http://www.nytimes.com/2008/06/07/business/07oil.html?_r=2&hp&oref=slogin&oref=slogin

Oil prices had their biggest gains ever on Friday, jumping nearly $11 to a new record above $138 a barrel, after a senior Israeli politician raised the specter of an attack on Iran and the dollar fell sharply against the euro.
...
“I don’t know how else to say it, this is not a bubble,” Jan Stuart, global oil economist at UBS, said. “I think this is real. There is a whole bunch of commercial buyers out there who are spooked and are buying. You are an airline, right now, you’re scared. But I don’t see who would buy at these prices unless they need to.”

I await Ragu's explanation as to why this is happening.

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 ****ty 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.