Vanity Trade!
 

Here's a stupid reason right here. I read this article today and all I could do is shake me head :shake:

http://www.nwotruth.com/single-trade...nd-oil-record/

The man behind the record rise in oil prices to $100 a barrel was a lone trader, seeking bragging rights and a minute of fame, market watchers say.A single trader bid up the price by buying a modest lot and then sold it immediately at a loss, they said.

The New York Mercantile Exchange confirmed that US crude oil futures traded just once in triple figures.

But prices have since remained below that historic level and market analysts questioned the validity of the trade.

Vanity trade

Stephen Schork, a former floor trader on the New York Mercantile Exchange and the editor of an oil market newsletter, said one floor trader bought 1,000 barrels, the smallest amount permitted, and sold it immediately for $99.40 at a $600 loss.

“They absolutely overpaid,” he told Radio Four’s Today Programme.

“He paid $600 for the right to tell his grandchildren that he was the first in the world to buy $100 oil.”

Most trading in energy futures has shifted away from the trading floor and takes place on electronic platforms.

The NYMEX, along with the Chicago Mercantile Exchange is one of the last bastions of “open outcry”, where traders use frantic hand signals to trade securities.

In London, open outcry trading still takes place on the London Metal Exchange, where aluminium, copper and zinc are traded.

The supporters of electronic trading claim that it is faster, cheaper, more efficient for users, and less prone to manipulation by market makers.

The dwindling liquidity on the NYMEX trading floor has led to considerable speculation that the exchange will soon shut down the trading floor to cut costs.

"Nice philosophy. Find good in bad. I like."

So sick of hearing about $4 gas. they have been reporting this for nearly 9 months now and we are still in the lower $2 range. Alarmist reporting. It is almost like the media wants it to het that range.

I don't know where you are, but the national average is $3.07/gallon.

The rest of the market caught up with him today.

Donger:

I know you don't want to believe it, but we are on the platteau. Oil supply has been nearly flat for 2 years (between 85-86 mbpd) while demand keeps shooting through the roof (see US, China, India). To complicate matters further, countries like Russia are beginning to see the wisdom in keeping their crude at home.

You can bet, unless the US enters a major recession/depression, gas will climb to between 3.80 - 4.00 avg this spring.

If a major political or weather event erupts between now and then, all bets are off.

Actually, I don't disagree with that. I do disagree with peak oil, however. You and I both know that more could be drilled.

Certainly. But we have to discuss return on investment before we start drilling.

Which means price will have to go even higher for deep, deep sea, etc.

Alberta tar sands are economical now (finally), but even that has a limit.

Indeed. The basic flaw of peak oil is the economics of it. It's not that the oil isn't there.

Au Contraire. By defination, peak MUST occur sometime. The devil is how much oil is truly "out there".

You are right on the economics portion of your argument.

Our way of life may shift, imo, before we reach it. 8 - 10 dollar a gal for gas WILL cause transition.

Hyper inflation is never pretty.

Heh. I meant to type upper. Don't know why I did that. We haven't been much above $2.89 here for quite some time. We spiked over it once but have also been as low as $2.57 in the last 2 months also.

I disagree. I don't believe that crude production simply stopped. I believe it is ongoing. I believe, therefore, that there is significantly more crude out there than we know about. Enough to outstrip demand for many, many years to come.

Just my opinion.

I wonder what gas prices are like in Olathe, I've been thinking about moving there.

Oil and its price are a conspiracy. once our war in the middle east ends with the U.S. leaving due to a LARGE recession back home. there will be about a 1 month period where new flutters out stating more and more instability causing prices to stay high then data (fundimentals) will continue to show that people are buying less.

were literatly shooting ourselfs in the foot in regards to those bogus reserve supply reports.

how is it gas supplies are rising while oil supplies are falling????? i can promise you that a significant increase in refining compacity isnt the culprit (sp?) its the fact that because of SPECULATION, we are selling off our oil and making money. this is because the price of oil will drop and its cheaper to buy it back again. simple economics however, doing this continues to keep prices high b/c everyone (speculators) thinks oh no less oil mean DEMAND must be rising... sorry throwing the BS card!

let oil rise all it wants, the higher it gets the closer it gets to being worthless. we know a recession is comming (or already here) so let it all happen at once and get the dumb oil bubble to burst. kick Bernanke out and put someone in there who has better ideas to stimulate an economy with fiscal policy other than CONSTANT CASH INJECTIONS OF CHEAP MONEY!!!!!!!!!!!!!!!!!!!!!!!!!! thus causing further decay of the greenback.

We'll agree to disagree then. I would argue that supply is much tighter than you indicate. Further, even if crude production is ongoing, we are talking about using trillions of barrels in a little over 150 years. It ain't being made at nowhere near that rate.

BTW just for giggles...

Year Cost (gas) Jan 1

1918 $0.25

1928 $0.21

1938 $0.19

1948 $0.27

1958 $0.31

1968 $0.35

1978 $0.84

1988 $1.02

1998 $1.17

2008 $3.06

Obviously the greatest leap in nearly 100 years was between 98 and 08 - The great depression only impacted gas by 2 cents (demand destruction). The 70's crisis more than doubled it. That caused a major recession (the Carter years) Now we are talking about tripling it. Ugh.