News Donger on Suicide Watch: Oil Nears $100 a Barrel - Page 6

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.

C-Mac · 09-03-2008, 06:42 AM

Quote:

Originally Posted by Skip Towne

A barrel of oil is 42 gallons. And lifting costs are considerably more than $2. I was a partner in an oil venture and it cost $10,000 to drill each well. And they were only 600 ft deep. West Texas wells are 2 miles deep.

I was quoting Fox news on what it costs Saudi Arabia to pump one barrel of oil. I guess I need to better educate myself on my barrel tables though.

**petegz28** · 09-03-2008, 08:39 AM

OPEC will cut production next week, Sept 9th and they willd fend the $100 level. gas under $3 is a pipe dream right now.

**chasedude** · 09-03-2008, 10:25 AM

Quote:

Originally Posted by petegz28

OPEC will cut production next week, Sept 9th and they willd fend the $100 level. gas under $3 is a pipe dream right now.

They're really cutting production? Link?

PhillyChiefFan · 09-03-2008, 11:07 AM

Why wouldn't they want to raise production? That would lower the price and increase demand, right? More demand = more money. I just hope that we don't go back to using oil like water.

Hopefully, we have learned our lesson and figured out how vulnerable we are. This could have brought the USA to its knees, I suppose it still might in the long run.

Funny though...everyone is cheering this fall, but another .30 is $4.80 in savings for a 16 gallon tank. But better saving than spending.

**jjchieffan** · 09-03-2008, 04:54 PM

DOnger, I understand the bullshit justification that you are trying to use. But it is flawed. It doesn't work that way any place else in the country. If Wal-Mart sells shirts for $10 a piece, and they find out that the next shipment will cost $1 more per shirt, they don't run out and mark up their shirts already on the shelf. Rather, they raise the price when the new shirts hit the shelves. Why? Because of competition. If they raise their prices before everyone else, people will just go some place else. The bullshit with gas prices happens because the prices are controlled. Phillips 66, Exxon, Texaco, they all raise their prices leaving the customer bent over a barrel. Don't give me your bullshit excuses. I for one, know better. It is GREED!!!

**Donger** · 09-03-2008, 06:19 PM

Quote:

Originally Posted by jjchieffan

DOnger, I understand the bullshit justification that you are trying to use. But it is flawed. It doesn't work that way any place else in the country. If Wal-Mart sells shirts for $10 a piece, and they find out that the next shipment will cost $1 more per shirt, they don't run out and mark up their shirts already on the shelf. Rather, they raise the price when the new shirts hit the shelves. Why? Because of competition. If they raise their prices before everyone else, people will just go some place else. The bullshit with gas prices happens because the prices are controlled. Phillips 66, Exxon, Texaco, they all raise their prices leaving the customer bent over a barrel. Don't give me your bullshit excuses. I for one, know better. It is GREED!!!

I have no idea how Walmart or any other retailer decides to their retail price. I do know how gasoline prices are decided.

**jjchieffan** · 09-03-2008, 07:41 PM

We all know how gasoline prices are decided. Exxon, Texaco, etc... look for any excuse to raise prices. The Prince of Saudi Arabia has a cold. Time to raise prices 50 cents a gallo. He is better now. Ok, lets drop them a nickle a gallon. And by the way, if that is the best response you can come up with, just give up. I gave a legitimate scenario and the best you can come up with is I have no idea how walmart decides their prices? They call that pwned around here.

**Donger** · 09-03-2008, 07:52 PM

Quote:

Originally Posted by jjchieffan

We all know how gasoline prices are decided. Exxon, Texaco, etc... look for any excuse to raise prices. The Prince of Saudi Arabia has a cold. Time to raise prices 50 cents a gallo. He is better now. Ok, lets drop them a nickle a gallon. And by the way, if that is the best response you can come up with, just give up. I gave a legitimate scenario and the best you can come up with is I have no idea how walmart decides their prices? They call that pwned around here.

If you would care to dispute my explanation of gasoline prices, please feel free to do so.

Like I said, I have no idea how big-box retailers manage their pricing, so I can't comment on that.

However, it is an interesting comparison: T-shirts versus gasoline. Is the core component of T-shirts a globally-traded commodity, as is crude oil? I suppose it would be cotton, right?

Coach · 09-03-2008, 08:02 PM

Quote:

Originally Posted by petegz28

OPEC will cut production next week, Sept 9th and they willd fend the $100 level. gas under $3 is a pipe dream right now.

Got any evidence to support this?

**jjchieffan** · 09-03-2008, 09:41 PM

You are totally missing the point Donger. Forget the F'ing product. I am talking about conducting business. But, if you want to talk about a globally traded product, try corn. I knew a man with a feed business. His feed prices varied with the market. When his corn cost him $3 a bushel, he charged for his feed based on paying $3 a bushel. If he found out that corn would be $3.50 a bushel next week, he did not automatically raise his prices 50 cents to cover the cost of the next load. You know what he did? He told people that the price was going up next week, and they might want to get more now because next week, his cost would go up and so would the feed. And when the price dropped 50 cents for corn, he dropped his feed price accordingly. Now that is the ethical way to do business. The oil business is not ethical. They are corrupt. They take advantage of the fact that people have to have their product. One thing drives oil and gas prices Greed.

**jjchieffan** · 09-06-2008, 11:25 PM

No response Donger?

Logical · 09-07-2008, 01:26 AM

Anyone notice that even though it has dropped almost 50 a barrel, gas has only dropped about 30 to 40 cents.

**DaneMcCloud** · 09-07-2008, 01:45 AM

Quote:

Originally Posted by CRONUS

Anyone notice that even though it has dropped almost 50 a barrel, gas has only dropped about 30 to 40 cents.

The oil executives got kids to feed!

Jewish Rabbi · 09-07-2008, 01:58 AM

Quote:

Originally Posted by DaneMcCloud

The oil executives got kids to feed!

Quoting the great Latrell Spreewell... "$8 million doesn't go as far as it used to."

**Donger** · 09-08-2008, 07:43 AM

Quote:

Originally Posted by jjchieffan

You are totally missing the point Donger. Forget the F'ing product. I am talking about conducting business. But, if you want to talk about a globally traded product, try corn. I knew a man with a feed business. His feed prices varied with the market. When his corn cost him $3 a bushel, he charged for his feed based on paying $3 a bushel. If he found out that corn would be $3.50 a bushel next week, he did not automatically raise his prices 50 cents to cover the cost of the next load. You know what he did? He told people that the price was going up next week, and they might want to get more now because next week, his cost would go up and so would the feed. And when the price dropped 50 cents for corn, he dropped his feed price accordingly. Now that is the ethical way to do business. The oil business is not ethical. They are corrupt. They take advantage of the fact that people have to have their product. One thing drives oil and gas prices Greed.

One of things that you are missing is that amount of time that it takes for crude to pumped to when it becomes refined, usable product.

That being said, we could do comparisons like this all day, but the fact remains that the profit margin of oil companies still remains lower than many major industries.

09-02-2008, 09:54 AM
Frazod Did you hear what I said? Join Date: Aug 2000 Casino cash: $-866615	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: 121,808

09-03-2008, 08:39 AM	#77
petegz28 Supporter Join Date: Feb 2005 Location: Olathe, Ks Casino cash: $-1185873	OPEC will cut production next week, Sept 9th and they willd fend the $100 level. gas under $3 is a pipe dream right now.
Posts: 132,556

09-03-2008, 11:07 AM	#79
PhillyChiefFan Veteran Join Date: May 2007 Location: Harrisburg, PA Casino cash: $3151139	Why wouldn't they want to raise production? That would lower the price and increase demand, right? More demand = more money. I just hope that we don't go back to using oil like water. Hopefully, we have learned our lesson and figured out how vulnerable we are. This could have brought the USA to its knees, I suppose it still might in the long run. Funny though...everyone is cheering this fall, but another .30 is $4.80 in savings for a 16 gallon tank. But better saving than spending.
Posts: 3,407

09-03-2008, 04:54 PM	#80
jjchieffan Supporter Join Date: Dec 2005 Location: Highlandville, MO Casino cash: $-177752	DOnger, I understand the bullshit justification that you are trying to use. But it is flawed. It doesn't work that way any place else in the country. If Wal-Mart sells shirts for $10 a piece, and they find out that the next shipment will cost $1 more per shirt, they don't run out and mark up their shirts already on the shelf. Rather, they raise the price when the new shirts hit the shelves. Why? Because of competition. If they raise their prices before everyone else, people will just go some place else. The bullshit with gas prices happens because the prices are controlled. Phillips 66, Exxon, Texaco, they all raise their prices leaving the customer bent over a barrel. Don't give me your bullshit excuses. I for one, know better. It is GREED!!! __________________ 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: 13,355

09-03-2008, 07:41 PM	#82
jjchieffan Supporter Join Date: Dec 2005 Location: Highlandville, MO Casino cash: $-177752	We all know how gasoline prices are decided. Exxon, Texaco, etc... look for any excuse to raise prices. The Prince of Saudi Arabia has a cold. Time to raise prices 50 cents a gallo. He is better now. Ok, lets drop them a nickle a gallon. And by the way, if that is the best response you can come up with, just give up. I gave a legitimate scenario and the best you can come up with is I have no idea how walmart decides their prices? They call that pwned around here. __________________ 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: 13,355

09-03-2008, 09:41 PM	#85
jjchieffan Supporter Join Date: Dec 2005 Location: Highlandville, MO Casino cash: $-177752	You are totally missing the point Donger. Forget the F'ing product. I am talking about conducting business. But, if you want to talk about a globally traded product, try corn. I knew a man with a feed business. His feed prices varied with the market. When his corn cost him $3 a bushel, he charged for his feed based on paying $3 a bushel. If he found out that corn would be $3.50 a bushel next week, he did not automatically raise his prices 50 cents to cover the cost of the next load. You know what he did? He told people that the price was going up next week, and they might want to get more now because next week, his cost would go up and so would the feed. And when the price dropped 50 cents for corn, he dropped his feed price accordingly. Now that is the ethical way to do business. The oil business is not ethical. They are corrupt. They take advantage of the fact that people have to have their product. One thing drives oil and gas prices Greed. __________________ 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: 13,355

09-06-2008, 11:25 PM	#86
jjchieffan Supporter Join Date: Dec 2005 Location: Highlandville, MO Casino cash: $-177752	No response Donger? __________________ 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: 13,355

09-07-2008, 01:26 AM	#87
Logical Screw U if U can't take a joke Join Date: Aug 2000 Casino cash: $10004900	Anyone notice that even though it has dropped almost 50 a barrel, gas has only dropped about 30 to 40 cents.
Posts: 31,579