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Less "DEMAND" Drags Oil Lower

Mike

Well-known member
Where's all the arguments that "Speculators" were driving oil prices up?
:lol: :lol: :lol: :lol: :lol: :lol: :lol: :lol: :lol: :lol: :lol: :lol:

You know who you are!!!!!!!!!!!!!!!!! :roll:
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Lower demand drags oil back towards $60
By Javier Blas in London

Published: October 27 2008 10:35 | Last updated: October 27 2008 17:57

Oil prices fell to a fresh 17-month low on Monday, trading just above $60 a barrel, on signals of lower energy demand in November, in spite of the arrival of the cold season in the northern hemisphere.

Nippon Oil, Japan’s largest refiner, said it will refine 15 per cent less crude oil next month than it did a year earlier because of weakening domestic demand.
West Texas Intermediate dropped as low as $61.30 a barrel, the lowest level since May 2007. WTI later pared some losses to trade 40 cents down on the day at $63.75 a barrel. Natural gas, heating oil and gasoline also fell.

In London, ICE December Brent crude futures lost $3 to hit an intraday low of $59.05 a barrel, its lowest level since February 2007. In late afternoon trading, Brent crude later traded 50 cents down at $61.57 a barrel.

The fall in oil prices came in spite of last week’s Opec oil cartel agreement to cut its production official limit by 1.5m barrels a day in an effort to put a floor on dropping oil prices.

Opec officials said they were monitoring the fall in prices. “Opec was in a no-win situation,” said Stephen Schork, editor of the industry Schork report. “Given that oil prices are in an absolute freefall, they had to cut,” he argued, “[but] on the other hand, in light of a world economy seemingly on the brink of the abyss, Opec was handcuffed with regard to the size of the cut.”

Iran said the oil cartel was ready to cut its production further if last week’s reduction does not stop the slide.

“In case the reduction in production does not stabilise the oil market, Opec will again reduce its production ceiling,” Mohammad Ali Khatibi Khatibi, Iran’s Opec representative, was quoted as saying by the Farhang-e Ashti newspaper in Tehran.

Other commodities prices, including copper, the bellwether of base metals, also fell sharply in early trading as investors unwound positions in what now is seen as a risky asset class.

But they recovered later on bets that the European central banks and the US Federal Reserve will cut interest rates to prop up their economies.

Oliver Jakob, of Swiss-based Petromatrix, the consultant, said financial flows were overall dominated by investors closing old bets of raising prices in commodity indices.

“With volatility indices at levels of systemic breakdowns, it should be expected that more risk is still to be taken off the table, meaning that the waves of indiscriminate selling across asset classes are not yet necessarily over and will dominate in the nearterm over fundamental considerations,” he said in a note to clients.

On the London Metal Exchange, copper jumped 8.8 per cent to $4,015 a tonne, recovering from an earlier low of $3,590 a tonne, its lowest level since September 2005.

Aluminium rose 4.1 per cent to $2,040 a tonne while tin jumped 14.5 per cent to $13,400 as Indonesian producers shut down their smelters.

Gold prices fell slightly as the US dollar strengthened against the euro. In London, spot bullion traded at $732.40 a troy ounce, down $7.30.

Agricultural commodities were mixed, with CBOT December corn rising 7 cents to $3.79¾ a bushel while CBOT November soyabeans jumped 29¼ cents to $8.93 a bushel in a tight market.

The Baltic Dry Index, a global measure of freight costs, posted its sixteenth consecutive daily loss, dropping 4.9 per cent to 1,048 points, its lowest level in six years.
Copyright The Financial Times Limited 2008
 
A

Anonymous

Guest
Defintely hasn't been a lot of speculating going on- nor stock market trade... Cash is king, right now...
 

Mike

Well-known member
Oldtimer said:
Defintely hasn't been a lot of speculating going on- nor stock market trade... Cash is king, right now...

Showing your stupidity again.

There was 329,524 oil futures trades for Dec. oil in just ONE MARKET!!!
:lol: :lol: :lol: :lol: :lol: :lol: :lol: :lol: :lol: :lol: :lol: :lol:
 
A

Anonymous

Guest
Falling oil prices are just a sign of the speculation of the falling worldwide demand which is bound to occur in the coming depression GW has lead the country/world to.....
 

Yocal

Member
Mike said:
Where's all the arguments that "Speculators" were driving oil prices up?
:lol: :lol: :lol: :lol: :lol: :lol: :lol: :lol: :lol: :lol: :lol: :lol:

You know who you are!!!!!!!!!!!!!!!!! :roll:
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Lower demand drags oil back towards $60

That danged ole' supply and demand rules the world, doesn't it? Don't fret, Mikey. There will soon be many more cars burning high dollar fuel.
 

TSR

Well-known member
Sandhusker said:
Just because they're not in the market now doesn't mean they weren't in it before.

I agree that they aren't in it to the degree that they were but there is still SOME speculation going on imo. BTW I don't remember anyone saying speculation was the ONLY reason for high oil prices, Mike. Nobody ever denied demand also played a role.
 

TexasBred

Well-known member
Oldtimer said:
Falling oil prices are just a sign of the speculation of the falling worldwide demand which is bound to occur in the coming depression GW has lead the country/world to.....

OT you sound like Joe Biden trying to set the table for Obama's big failure IF he get elected.
 

backhoeboogie

Well-known member
Oldtimer said:
Falling oil prices are just a sign of the speculation of the falling worldwide demand which is bound to occur in the coming depression GW has lead the country/world to.....

You were saying it was GW's fault the prices were high.
 
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