News Donger on Suicide Watch: Oil Nears $100 a Barrel

Frazod · 09-02-2008, 09:54 AM

http://apnews.myway.com/article/20080902/D92UIA0G0.html

SINGAPORE (AP) - Oil prices fell below $106 a barrel Tuesday in Asia - $10 below its close Friday before the Labor Day weekend - as investors shifted their focus to slowing global demand after worries about Hurricane Gustav subsided.

Light, sweet crude for October delivery was trading at $106.03 a barrel in electronic trading on the New York Mercantile Exchange midafternoon in Singapore, and at one point dropped as low as $105.46.

On Monday, when U.S. trading was closed for Labor Day, the contract had plunged $4.34 to $111.12 a barrel in late electronic trading. On Friday, the contract settled at $115.46 a barrel.

Traders were relieved that Gustav weakened as it approached the offshore oil rigs and Louisiana refineries, and appeared to have caused less damage than expected in New Orleans and surrounding areas.

But they quickly turned their attention to slowing global economic growth, speculating that will dampen demand for crude oil, even in developing countries such as China and India.

"The market continues to be weighed down by worries of a global economic downturn and slowing oil demand in developing markets," said Victor Shum, an energy analyst with consultancy Purvin & Gertz in Singapore. "Action by OPEC and supply side concerns should put a backstop to any sharp price drop."

The Organization of Petroleum Exporting Countries is scheduled to meet Sept. 9 and has indicated it may take action to defend the $100 a barrel level.

There was some disruption to oil supplies as oil companies shut down production and evacuated facilities ahead of the storm. Altogether, about 2.4 million barrels of refining capacity had been halted, roughly 15 percent of the U.S. total, according to figures from Platts, the energy information arm of McGraw-Hill Cos. (MHP) The Gulf Coast is home to nearly half of the nation's refining capacity.

It could be a day or more before oil and natural gas companies can assess the damage to their drilling and refining installations. Louisiana Gov. Bobby Jindal said as much as 20 percent of oil and gas production that was stopped because of Gustav could be restored by this weekend, stressing that it was a rough estimate.

Traders are also keeping an eye on other storms brewing in the region.

Hurricane Hanna was predicted to come ashore in Georgia and South Carolina late in the week, and Tropical Storm Ike formed late Monday in the Atlantic Ocean and may become a hurricane in the next 36 hours as it approached the Bahamas.

"September is the peak of the Atlantic hurricane season. After Gustav, there are two more now on the radar screen. The storms are likely to provide some upside risks to the oil futures market," Shum said.

In other Nymex trading, heating oil futures fell 15.44 cents to $3.0375 a gallon, while gasoline prices lost 16.92 cents to $2.685 a gallon. Natural gas for October delivery fell 47.3 cents to $7.472 per 1,000 cubic feet. In London, October Brent crude was down $2.01 to $107.40 a barrel on the ICE Futures exchange.

**The Franchise** · 09-02-2008, 09:57 AM

Everybody fill up quick!!111!!11!!!1!1ONE1!

**Donger** · 09-02-2008, 10:01 AM

Good. It's hopefully going back to where it should be (~$70 - $80). It's down 8% alone.

Deberg_1990 · 09-02-2008, 10:02 AM

Thanks everyone for cancelling your summer vacations and selling off your SUV's!!!

**Bugeater** · 09-02-2008, 10:03 AM

Gas should be below $3/gal by election time then...

**Donger** · 09-02-2008, 10:06 AM

Quote:

Originally Posted by GoBo

Gas should be below $3/gal by election time then...

Yes, $70/barrel is approximately $3.00/gallon.

**DeezNutz** · 09-02-2008, 10:49 AM

Quote:

Originally Posted by GoBo

Gas should be below $3/gal by election time then...

Clearly just a coincidence, just like it was in '06.

Supply/demand, speculators, etc...

Coach · 09-02-2008, 06:02 PM

Quote:

Originally Posted by GoBo

Gas should be below $3/gal by election time then...

And let's hope it stays there for quite some time. Hate to see that it goes below 3.00 and after the election is over, it spikes up to 3.60 or somewhere in the ball-park figure.

splatbass · 09-02-2008, 07:57 PM

Quote:

Originally Posted by GoBo

Gas should be below $3/gal by election time then...

It's still $4.40 a gallon here. It will not fall to $3 here by the election.

**Bugeater** · 09-02-2008, 08:01 PM

Quote:

Originally Posted by splatbass

It's still $4.40 a gallon here. It will not fall to $3 here by the election.

Eh, what difference does it make, y'all can't drive very far on that island anyway.

Mr. Laz · 09-02-2008, 10:05 AM

lets all hope that Donger has the guts to follow through ........

don't be a puss, finish what you start!!!

eazyb81 · 09-02-2008, 10:05 AM

My only concern with the drop over the past month or so is that we will put all these wonderful energy plans on the back burner because we think everything is back to normal. We still need to push for off-coast drilling and searching for alternative fuels.

**Donger** · 09-02-2008, 10:07 AM

Quote:

Originally Posted by eazyb81

My only concern with the drop over the past month or so is that we will put all these wonderful energy plans on the back burner because we think everything is back to normal. We still need to push for off-coast drilling and searching for alternative fuels.

Indeed. People need to remember the pain of $4.00 gasoline.

**Skip Towne** · 09-02-2008, 10:11 AM

I spent $180 on gasoline last week.

Reerun_KC · 09-02-2008, 11:34 AM

Quote:

Originally Posted by Skip Towne

I spent $180 on gasoline last week.

I thought Rascal Scooters ran off electricity?

09-02-2008, 09:54 AM	Topic Starter
Frazod Did you hear what I said? Join Date: Aug 2000 Casino cash: $-826615	Donger on Suicide Watch: Oil Nears $100 a Barrel http://apnews.myway.com/article/20080902/D92UIA0G0.html SINGAPORE (AP) - Oil prices fell below $106 a barrel Tuesday in Asia - $10 below its close Friday before the Labor Day weekend - as investors shifted their focus to slowing global demand after worries about Hurricane Gustav subsided. Light, sweet crude for October delivery was trading at $106.03 a barrel in electronic trading on the New York Mercantile Exchange midafternoon in Singapore, and at one point dropped as low as $105.46. On Monday, when U.S. trading was closed for Labor Day, the contract had plunged $4.34 to $111.12 a barrel in late electronic trading. On Friday, the contract settled at $115.46 a barrel. Traders were relieved that Gustav weakened as it approached the offshore oil rigs and Louisiana refineries, and appeared to have caused less damage than expected in New Orleans and surrounding areas. But they quickly turned their attention to slowing global economic growth, speculating that will dampen demand for crude oil, even in developing countries such as China and India. "The market continues to be weighed down by worries of a global economic downturn and slowing oil demand in developing markets," said Victor Shum, an energy analyst with consultancy Purvin & Gertz in Singapore. "Action by OPEC and supply side concerns should put a backstop to any sharp price drop." The Organization of Petroleum Exporting Countries is scheduled to meet Sept. 9 and has indicated it may take action to defend the $100 a barrel level. There was some disruption to oil supplies as oil companies shut down production and evacuated facilities ahead of the storm. Altogether, about 2.4 million barrels of refining capacity had been halted, roughly 15 percent of the U.S. total, according to figures from Platts, the energy information arm of McGraw-Hill Cos. (MHP) The Gulf Coast is home to nearly half of the nation's refining capacity. It could be a day or more before oil and natural gas companies can assess the damage to their drilling and refining installations. Louisiana Gov. Bobby Jindal said as much as 20 percent of oil and gas production that was stopped because of Gustav could be restored by this weekend, stressing that it was a rough estimate. Traders are also keeping an eye on other storms brewing in the region. Hurricane Hanna was predicted to come ashore in Georgia and South Carolina late in the week, and Tropical Storm Ike formed late Monday in the Atlantic Ocean and may become a hurricane in the next 36 hours as it approached the Bahamas. "September is the peak of the Atlantic hurricane season. After Gustav, there are two more now on the radar screen. The storms are likely to provide some upside risks to the oil futures market," Shum said. In other Nymex trading, heating oil futures fell 15.44 cents to $3.0375 a gallon, while gasoline prices lost 16.92 cents to $2.685 a gallon. Natural gas for October delivery fell 47.3 cents to $7.472 per 1,000 cubic feet. In London, October Brent crude was down $2.01 to $107.40 a barrel on the ICE Futures exchange.
Posts: 121,788

09-02-2008, 09:57 AM	#2
The Franchise Most Valuable Villain Join Date: Dec 2006 Casino cash: $2065047	Everybody fill up quick!!111!!11!!!1!1ONE1!
Posts: 92,316

09-02-2008, 10:01 AM	#3
Donger "Think BOOM!" Join Date: Nov 2003 Location: 33.675° N 106.475° W Casino cash: $6809900 VARSITY	Good. It's hopefully going back to where it should be (~$70 - $80). It's down 8% alone. __________________ I think the young people enjoy it when I "get down," verbally, don't you?
Posts: 191,135

09-02-2008, 10:02 AM	#4
Deberg_1990 In Search of a Life Join Date: Jan 2004 Location: San Antonio Tx. Casino cash: $64454	Thanks everyone for cancelling your summer vacations and selling off your SUV's!!! __________________ Originally Posted by Cassel's Reckoning: Matt once made a very nice play in Seattle where he spun away from a pass rusher and hit Bowe off his back foot for a first down. One of the best plays Matt has ever made.
Posts: 68,709

09-02-2008, 10:03 AM	#5
Bugeater The Maintenance Guy Join Date: Sep 2005 Location: Renovated Bugeater Estate Casino cash: $3992680	Gas should be below $3/gal by election time then...
Posts: 70,546

09-02-2008, 10:05 AM	#11
Mr. Laz Don't Tease Me Join Date: Dec 2000 Location: KS Casino cash: $11047037	lets all hope that Donger has the guts to follow through ........ don't be a puss, finish what you start!!! __________________
Posts: 95,626

09-02-2008, 10:05 AM	#12
eazyb81 The Illuminati Join Date: Oct 2004 Location: the road less traveled Casino cash: $9984900	My only concern with the drop over the past month or so is that we will put all these wonderful energy plans on the back burner because we think everything is back to normal. We still need to push for off-coast drilling and searching for alternative fuels.
Posts: 12,033

09-02-2008, 10:11 AM	#14
Skip Towne Supporter Join Date: Apr 2001 Location: T-Town Casino cash: $10004900	I spent $180 on gasoline last week.
Posts: 69,689