Breaking: Oil prices rise nearly 16-percent in one day of trading
The price for a barrel of Crude for October delivery rose $16.37, or 15.7%, to close at $120.92 by the end of today's trading in New York. Why? There doesn't actually appear to be any one particular reason, with speculation of an improving economy due to the Bush administration's hopeful ability to revitalize the struggling financial sector and overall economy taking top honors. This spike represents the largest ever pricing increase for oil in the history of trading. Most analysts seem to believe that this spike is a short-term event, though the situation bears watching over the next few days. Stay tuned.[Source: MarketWatch]
Reader Comments (Page 1 of 1)
Andy 6:58PM (9/22/2008)
The US is sending billions of dollars to Saudi, Dubai and Emirates every day. Now they have been banned from shorting the financials. They have found another tail to pull.
Wake up and open your eyes America. Get off this oil addicition.
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Charles delvalle 11:19PM (9/22/2008)
This huge spike in oil is due to two things.
1 - The value of the us dollar dropped alot today because of a proposed trillion dollar bailout package to help the economy. This bailout would add huge deficits.
2 - the bailout means the economy should improve sooner, rather than later. this expected growth in demand means oil prices move higher.
I talk about it alot over at www.investorsdailyedge.com if anyone wants to check it out.
later,
Charles
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Andy 1:40AM (9/23/2008)
Don't want to sound paranoid. The guy at Minyanville was sparking a rumour the short selling ban was to block huge short positions coming from London and Dubai.
If true I'm guessing this is mainly Arab oil money. It makes sense that a lot of folks have now been forced to unwind speculative short oil positions.
I guess the US banks don't look so dumb when they can get their buddy at the fed to change the rules in their favour overnight. Makes it hard to bet against them doesn't it. I wonder if they were given prior notice and placed counter bets.
Dave 7:18PM (9/22/2008)
"There doesn't actually appear to be any one particular reason..."
Hannah knocked many refineries (the folks who buy crude oil) off line and the price dropped. (demand falls--> price falls)
The refineries are coming back online and the price rises. (demand rises --> price rises)
Mystery solved.
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stevefazek 9:52PM (9/22/2008)
Except that gas in in a fall even before the storms
Rick 7:19PM (9/23/2008)
Do you read the news? Prices went up nearly $30 in one day because of Bush's baillout plan. It will destroy the dollar and investors (ie speculators) dumped their money into oil. Refineries do not yeild a $30 in one day influence on oil prices regardless of what republicans want you to believe.
Demand? Yea, by speculators demanding to make a profit from their daily work on wallstreet.
SEC sucks 9:02PM (9/22/2008)
This is very simple. The speculators wanted it to go up so it did.
Andy has it right, speculators had been focused on shorting the financials and now they have to move to something else. If the SEC really wanted to do something about the mess that these guys are causing they would completely ban short-selling on all stocks FOR EVER, eliminate anyone from being in the commodities market that is not a producer or user and eliminate leveraging in the stock market. If you want to play in the stock market you must have cold hard cash.
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Anth 9:21PM (9/22/2008)
NO NO NO!
Look at the futures chain. Oil will open at 109 tomorrow. Why? Because today was the last day for October futures trading. It was a short spike. Tomorrow we use November deliveries.
http://finance.yahoo.com/q/fc?s=CLV08.NYM
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SEC Sucks 1:12AM (9/23/2008)
not going to open at $109... maybe closer to $119
http://freeserv.dukascopy.com/chart/?stock_id=504&stock_id=504&interval=1&points_number=500&view_type=line&width=400&height=300&show_labels=true&osc_type=1&volume=true&height=300&p1=2&p2=3&p3=5&c=4235659&detach=true©r=true&refcode=c7f4f86308838726735a33
stevefazek 9:52PM (9/22/2008)
Its almost like wall street is trying to black mail the US into giving them free money
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Noz 10:26PM (9/22/2008)
OF COURSE IT'S A SHORT TERM EVENT...there's a bunch of insiders making hundreds of millions everyday while we suck our pinkies.
Wake up.
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tankd0g 12:33AM (9/23/2008)
No particular reason, NO PARTICULAR REASON!? How about the fact that the USA is in the worse crisist since 1929 and the dollar is TANKING. You don't announce a $700 billion bailout package in in the works and expect things to go on as usual.
Also, it's inevitable oil would go up at the end of a contract when it was low for the duration, no one was buying it when it was low and now they got caught with their pants now and had to buy in, running up the price int he process. You'll notice November is back to $108 and falling.
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Andy 1:54AM (9/23/2008)
While I'm about it.
Think twice before giving Paulson additional powers. Whose side was he on anyway. He's likely a big part of the problem not neccessarily the solution.
Todays problems stem from sneaky, greedy abuse of cheap money provided by the Treasury and Fed'.
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Rick 7:19PM (9/23/2008)
But wait, I thought oil went up in price strictly because of demand?
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gorr 3:02PM (9/23/2008)
Well, the thing to understand abouth petroleum use is that it's a very long story but everyday it's evoluting, like we can see at the pump, in stock markets, in political speechs, in wars, in climate and ecological castastrophies. The thing is that the history of this planet was made up to today by the single and repetitive dream of just one single guy, jesus.
'' The dream is that he comes as an angel from south-africa, move to the north to france then with a human body, go to north-america in a sailboat then arriving at detroit by st-lawrence river and lake michigan take a car there and drive by car through road 66 to san-diego''
That dream was put in all skulls of human brains by the prayers of jesus since more then 4 000 years ago and is sincere and explain the main history of this planet up to today . You can influence human history yourself by ordering in internet what kind of sociaty and car you want, this dream is not just for jesus.
Petrol was chosen by the ones that have a dead soul, 70% of men and 10% of women, it's their way to say that everything is dead and that power of life come from the middle of earth in the form of toxic mud full of ashs and that it's limited in quantity
and it's polluting and that we must fight war before some poors take their parts too.
To understand today's news, we have to understand what confessions are. Confessions are made by the one that feel guilty of their past sins when someone express a new and positive idea. If the new idea is put in practice with style and happiness, then the confessions is utterly brutal and deadly. So all the turmoil of the republicans and democrats and associated business like big oils and madscientists are a confession of them having burn, surgery without amnesia, arrests, suffocation
of an entire race made of skin while them were robot-like corpses
on a previous planet 80 billions years ago. They chosen sciences instead of the main belief of that time that was just natural believers without mystery abouth physical sciences.
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