News Donger on Suicide Watch: Oil Nears $100 a Barrel - Page 8

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.

**Donger** · 09-08-2008, 11:09 AM

Quote:

Originally Posted by GoBo

Well, they certainly don't care that fuel costs are affecting other companies profit margins...so what's the problem with him saying that?

Because he's getting hung up on the dollar figure and doesn't care about the profit margin percentage.

**jjchieffan** · 09-08-2008, 11:09 AM

Quote:

Originally Posted by Donger

Wow.

You are just going to pick part of what I said and respond wow? Man you are articulate Donger. Next thing you know you are going to pull a Jesse Jackson and start making words up to win your arguement.

You know what I meant by that. I know profit margin is important, but a company that has broken the record for profits by a US company 3 years in a row while their product is causing financial strain and excessive inflation in the US is bullshit! The greedy F***ers are robbing the American public.

**Donger** · 09-08-2008, 11:13 AM

Quote:

Originally Posted by jjchieffan

You are just going to pick part of what I said and respond wow? Man you are articulate Donger. Next thing you know you are going to pull a Jesse Jackson and start making words up to win your arguement.

You know what I meant by that. I know profit margin is important, but a company that has broken the record for profits by a US company 3 years in a row while their product is causing financial strain and excessive inflation in the US is bullshit! The greedy F***ers are robbing the American public.

What would you like them to do? Lower their profit margin?

**jjchieffan** · 09-08-2008, 11:19 AM

What was their profit Margin when oil was $40 a barrel? I think they were still getting filthy rich. So yes, I think a lower profit margin is needed. God forbid that next year they make $30 billion instead of $40 billion. Why that might just bankrupt them.

**Donger** · 09-08-2008, 11:21 AM

Quote:

Originally Posted by jjchieffan

What was their profit Margin when oil was $40 a barrel? I think they were still getting filthy rich. So yes, I think a lower profit margin is needed. God forbid that next year they make $30 billion instead of $40 billion. Why that might just bankrupt them.

About 9%, IIRC.

So, it doesn't bug you that banks have profit margins of around 20%? Google has 25%?

**jjchieffan** · 09-08-2008, 11:26 AM

I dont see googles profit margins having the negative effect on the economy that the record profits by oil companies is, so no, I don't have a problem with that. Bakns, you have not provided info to back that up, so I will not address it.

And I dont see how the profit margin has remained virtually the same when the price of oil has tripled, yet their cost has not. Sounds like someone is playing with the numbers

**Bugeater** · 09-08-2008, 11:30 AM

Quote:

Originally Posted by jjchieffan

And I dont see how the profit margin has remained virtually the same when the price of oil has tripled, yet their cost has not. Sounds like someone is playing with the numbers

Uh, sorry but you're contradicting yourself there. If the price of oil goes up their costs go right up with it.

**jjchieffan** · 09-08-2008, 11:33 AM

Why is their cost going up? They are the ones pumping it out of the ground. Their cost to get it out of the ground has not gone up. The price that they sell the oil for has tripled.

**Donger** · 09-08-2008, 11:36 AM

Quote:

Originally Posted by jjchieffan

I dont see googles profit margins having the negative effect on the economy that the record profits by oil companies is, so no, I don't have a problem with that. Bakns, you have not provided info to back that up, so I will not address it.

And I dont see how the profit margin has remained virtually the same when the price of oil has tripled, yet their cost has not. Sounds like someone is playing with the numbers

You are aware that the oil companies do not control the price of crude, yes?

Anyway, here's a chart that you'll enjoy:

**Donger** · 09-08-2008, 11:42 AM

Quote:

Originally Posted by jjchieffan

Why is their cost going up? They are the ones pumping it out of the ground. Their cost to get it out of the ground has not gone up. The price that they sell the oil for has tripled.

They refine more crude than they can produce. Therefore, they also buy crude on the open market.

**Bugeater** · 09-08-2008, 11:49 AM

I suppose we should be outraged at that profit margin for pharmaceuticals and medicines seeing that could be considered a necessity and have a negative effect on the economy. I wonder where the healthcare industry as a whole would fall into that graph...

BigCatDaddy · 09-16-2008, 11:25 AM

$93 and falling. Come on down!

Goapics1 · 09-16-2008, 11:32 AM

Quote:

Originally Posted by BigCatDaddy

$93 and falling. Come on down!

Donger will be here in a few to tell us why gas is still above $4/gallon. He must own a gas station or something.

jiveturkey · 09-16-2008, 11:48 AM

Quote:

Originally Posted by apics1

Donger will be here in a few to tell us why gas is still above $4/gallon. He must own a gas station or something.

Ha, Donger sucks!

**Donger** · 09-16-2008, 12:37 PM

Quote:

Originally Posted by apics1

Donger will be here in a few to tell us why gas is still above $4/gallon. He must own a gas station or something.

It isn't above $4.00/gallon.

09-02-2008, 09:54 AM
Frazod Did you hear what I said? Join Date: Aug 2000 Casino cash: $-836615	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: 121,794

09-08-2008, 11:19 AM	#109
jjchieffan Supporter Join Date: Dec 2005 Location: Highlandville, MO Casino cash: $-147752	What was their profit Margin when oil was $40 a barrel? I think they were still getting filthy rich. So yes, I think a lower profit margin is needed. God forbid that next year they make $30 billion instead of $40 billion. Why that might just bankrupt them. __________________ Genesis 1:1 In the beginning, God created the Heavens and the Earth. Following the historical accounts and the genealogy from that point on, the age of the Earth is approximately 6000-7000 years old. The Big Bullshit Theory is a lie. It and the evolution theory go against real science. Satan has used our public school system to brainwash everyone into believing these lies. Be not decieved.
Posts: 13,354

09-08-2008, 11:26 AM	#111
jjchieffan Supporter Join Date: Dec 2005 Location: Highlandville, MO Casino cash: $-147752	I dont see googles profit margins having the negative effect on the economy that the record profits by oil companies is, so no, I don't have a problem with that. Bakns, you have not provided info to back that up, so I will not address it. And I dont see how the profit margin has remained virtually the same when the price of oil has tripled, yet their cost has not. Sounds like someone is playing with the numbers __________________ Genesis 1:1 In the beginning, God created the Heavens and the Earth. Following the historical accounts and the genealogy from that point on, the age of the Earth is approximately 6000-7000 years old. The Big Bullshit Theory is a lie. It and the evolution theory go against real science. Satan has used our public school system to brainwash everyone into believing these lies. Be not decieved.
Posts: 13,354

09-08-2008, 11:33 AM	#113
jjchieffan Supporter Join Date: Dec 2005 Location: Highlandville, MO Casino cash: $-147752	Why is their cost going up? They are the ones pumping it out of the ground. Their cost to get it out of the ground has not gone up. The price that they sell the oil for has tripled. __________________ Genesis 1:1 In the beginning, God created the Heavens and the Earth. Following the historical accounts and the genealogy from that point on, the age of the Earth is approximately 6000-7000 years old. The Big Bullshit Theory is a lie. It and the evolution theory go against real science. Satan has used our public school system to brainwash everyone into believing these lies. Be not decieved.
Posts: 13,354

09-08-2008, 11:49 AM	#116
Bugeater The Maintenance Guy Join Date: Sep 2005 Location: Renovated Bugeater Estate Casino cash: $3992680	I suppose we should be outraged at that profit margin for pharmaceuticals and medicines seeing that could be considered a necessity and have a negative effect on the economy. I wonder where the healthcare industry as a whole would fall into that graph...
Posts: 70,546

09-16-2008, 11:25 AM	#117
BigCatDaddy The Beast Inside Your Head Join Date: Jul 2006 Location: Parts Unknown Casino cash: $-1850878	$93 and falling. Come on down!
Posts: 26,277