Neil D Posted December 11, 2008 Posted December 11, 2008 NEW YORK (MarketWatch) -- Crude-oil futures soared above $49 a barrel Thursday, propelled by sharp weakness in the dollar and expectations that the Organization of Petroleum Exporting Countries will deliver a significant production cut next week. Crude for January delivery rose $4.46, or 10.2%, to end at $47.98 a barrel on the New York Mercantile Exchange. Earlier, the contract hit an intraday high of $49.12 a barrel in electronic trading on Globex. Other energy futures also rallied. January reformulated gasoline rose 11 cents, or 11%, to end at $1.08 a gallon and January heating oil gained 11 cents to finish at $1.51 a gallon. In the currency markets, the dollar fell sharply against its rivals, as a surge in U.S. jobless claims and other negative economic data put the greenback under heavy selling pressure. See Currencies. Dollar weakness typically boosts dollar-denominated commodities such as oil and gold. Gold futures also rallied Oil prices soared more than 3% on Wednesday. "Currently, there appears to be no sign of the deteriorating demand outlook bottoming out, so one of the main factors supporting prices at the moment is market expectations of a large OPEC cut next week," said Nimit Khamar, analyst at Sucden Research. "In our opinion, if OPEC fails to meet these expectations, then oil prices could test recent lows once again," Khamar said in a note. OPEC is widely expected to agree on a cut in member nations' quotas at its meeting next Wednesday. In October, the oil cartel announced a production cut of 1.5 million barrels a day but left output levels unchanged at its November meeting. "Prices were also supported by a statement by Saudi Oil Minister Ali al-Naimi who said they pumped 8.49 million barrels a day in November, less than estimated and in line with its OPEC target," said John Kilduff, an analyst at MF Global, in a note. "It is expected that January shipments from the kingdom will be even lower, as a result of additional cuts to be announced next week from Algeria," Kilduff said. Saudi Arabia, with approximately one-fifth of the world's proven oil reserves, is the largest oil producer within OPEC. Russia, which is not a member of OPEC, will attend the meeting next week as an observer and is expected to announce proposals for a cut in Russian production. Global oil demand to rise in 2009: IEA Energy traders also digested the International Energy Agency's latest monthly report on the global oil market issued earlier Thursday. Worldwide demand is expected to contract in 2008 for the first time since 1983, shrinking by 200,000 barrels a day, with the total this year revised down by 350,000 barrels a day to 85.8 million barrels a day, the IEA said. The IEA also said demand for 2009 will rise to a downward-adjusted 86.3 million barrels a day, based on the International Monetary Fund's assumption that the global economy will gradually recover from the second half of next year. In contrast to the IEA's expectations, the U.S. government's Energy Information Administration said on Tuesday that global oil consumption is expected to decline by 50,000 barrels a day in 2008 and by 450,000 barrels a day in 2009, which would mark the first time in three decades that world consumption declined in two consecutive years. Traders also kept an eye on developments on Capitol Hill. Billions of dollars in emergency loans to the Big Three automakers hung in the balance on Thursday as Republican senators mulled alternatives to a House-passed bill they said they couldn't support. The House approved a $14 billion package of loans to the automakers on Wednesday night that calls for significant restructuring at the companies. But some Republicans say the bill doesn't go far enough and are threatening to block it in the Senate. Read more. Meanwhile, U.S. natural-gas inventories fell by 67 billion cubic feet to stand at 3,291 billion cubic feet during the week ended Dec. 5, the EIA reported Thursday. Analysts at Global Insight had projected a storage withdrawal of 112 billion cubic feet. January natural gas ended down 9 cents at $5.60 per million British thermal units on Nymex. End of Story Polya Lesova is a New York-based reporter for MarketWatch. Quote Democracy is a device that ensures we shall be governed no better than we deserve. George Bernard Shaw
Woody Posted December 11, 2008 Posted December 11, 2008 Well ... at my place the price of gas is below $1.50 ... so I ain't complainin. Quote May we be one so that the world may be won. Christian from the cradle to the grave I believe in Hematology.
Neil D Posted December 11, 2008 Author Posted December 11, 2008 [looking in to my crystal ball] I make the prediction that in one months time, you will be complaining about Obama and associating it with gas and it's prices.... [pseudo soothsayer mode-off] Quote Democracy is a device that ensures we shall be governed no better than we deserve. George Bernard Shaw
Woody Posted December 11, 2008 Posted December 11, 2008 I was wondering if he would be trying to raise the price of gas so that his rich cronies could benefit from it. Just look at how much good President Bush has done for us. We can all benefit from low gas prices. This was what President Bush had predicted if we went to war in Iraq. But few would listen. Instead they ridiculed him. Now he is being vindicated. Quote May we be one so that the world may be won. Christian from the cradle to the grave I believe in Hematology.
Neil D Posted December 11, 2008 Author Posted December 11, 2008 Ooops....my crystal ball has just informed me that it predicts that Tom Wetmore will be commenting on YOUR grousing on Obama and gas prices..... [pseudo soothsayer mode-of] Quote Democracy is a device that ensures we shall be governed no better than we deserve. George Bernard Shaw
Woody Posted December 11, 2008 Posted December 11, 2008 Oh please ... not Tom Quote May we be one so that the world may be won. Christian from the cradle to the grave I believe in Hematology.
Neil D Posted December 11, 2008 Author Posted December 11, 2008 I was wondering if he would be trying to raise the price of gas so that his rich cronies could benefit from it. Just look at how much good President Bush has done for us. We can all benefit from low gas prices. This was what President Bush had predicted if we went to war in Iraq. But few would listen. Instead they ridiculed him. Now he is being vindicated. "Good that President Bush has done for us"??? Bush definitely has ties to the oil field industry, and they made record profits, even in the face of rising gas prices...As a result of increasing gasoline pricing, 1 in 10 homes are in delinquent payment status or in foreclosure, 1 in 20 homes are in delinquent stats, and 1 in 33 homes went into forclosure due to people not able to make payments on their homes... People made adjustments on their traveling and forced a global wide glut of gas, and the price, after many months, has finally come down.....and you say credit President Bush for this ...and it was done for us? Wheeeeeoooo......Ok, I will give him credit for this.... Quote Democracy is a device that ensures we shall be governed no better than we deserve. George Bernard Shaw
Woody Posted December 11, 2008 Posted December 11, 2008 Neil my friend ... you certainly do have a slanted view of things. Try to be more positive when it comes to our President. I think you would be much happier. From the looks of your avatar ... you could use some happiness. Quote May we be one so that the world may be won. Christian from the cradle to the grave I believe in Hematology.
Neil D Posted December 11, 2008 Author Posted December 11, 2008 I was just giving credit where credit was do...and agreeing with you to boot!.... Shoot, you sure are wishy washy...I think that this was the first time I really tried to agree with you, and you brush it off.... Man!!!! No pleasing anyone!!!! Quote: I think you would be much happier. From the looks of your avatar ... you could use some happiness. My avatar reflects the frustration I feel from all the Bush isms and dirty politics and poor relationships with other countrys and cronyism from our current president. Quote Democracy is a device that ensures we shall be governed no better than we deserve. George Bernard Shaw
Woody Posted December 11, 2008 Posted December 11, 2008 Poor Neil ... Poor Neil ... The day that you support our president is the day I will turn over in my grave. Quote May we be one so that the world may be won. Christian from the cradle to the grave I believe in Hematology.
Woody Posted December 11, 2008 Posted December 11, 2008 I am disappointed that Obama has not appointed Ken Starr to a cabinet post. Considering all the Clinton folks going to work for Obama ... I thought that Ken Starr would be a good balance. Quote May we be one so that the world may be won. Christian from the cradle to the grave I believe in Hematology.
Neil D Posted December 11, 2008 Author Posted December 11, 2008 Sorry, but Ken Starr is a poor producer. After spending millions and millions of tax payer dollars, we expected murder, subterfuge and intrigue and all we got was a low class indiscresion. Quote Democracy is a device that ensures we shall be governed no better than we deserve. George Bernard Shaw
Woody Posted December 11, 2008 Posted December 11, 2008 Impeachment is no small potato. And that is what he produced. One BIG potato. Quote May we be one so that the world may be won. Christian from the cradle to the grave I believe in Hematology.
Neil D Posted December 11, 2008 Author Posted December 11, 2008 Congress is the only one able to produce impeachment... No, he may have been the catylist to cause it, but produce it...no... Quote Democracy is a device that ensures we shall be governed no better than we deserve. George Bernard Shaw
Woody Posted December 11, 2008 Posted December 11, 2008 Well ... he provided the potato and they ate it. Quote May we be one so that the world may be won. Christian from the cradle to the grave I believe in Hematology.
Neil D Posted December 11, 2008 Author Posted December 11, 2008 Well ... he provided the potato and they ate it. Well, "they" being republicans....and they took it 'hook, line, and sinker"..... Quote Democracy is a device that ensures we shall be governed no better than we deserve. George Bernard Shaw
Woody Posted December 11, 2008 Posted December 11, 2008 That would make Ken Starr one powerful and skilled attorney. How do you like them there potatoes? Quote May we be one so that the world may be won. Christian from the cradle to the grave I believe in Hematology.
Dr. Shane Posted December 12, 2008 Posted December 12, 2008 It is hard to see the price of oil rising a lot with consuption dropping. Unless, of course, the value of the dollar drops dramatically. However it is hard to see that either since the European banks are in crisis too. But who knows? Top story tomorrow could be completing unpredictable. Quote Pastoral Family Counselor... Find me at www.PostumCafe.com Author of Peculiar Christianity
Neil D Posted December 12, 2008 Author Posted December 12, 2008 I believe the price of oil went up $2 per barrol this week...and it was due to the cartels cutting back on the production.... Quote Democracy is a device that ensures we shall be governed no better than we deserve. George Bernard Shaw
Moderators Bravus Posted December 12, 2008 Moderators Posted December 12, 2008 Yeah, but it's in the 40s and it was in the 140s not long ago Quote Truth is important
Woody Posted December 12, 2008 Posted December 12, 2008 I believe the price of oil went up $2 per barrol this week...and it was due to the cartels cutting back on the production.... Those nasty cartels. Do they realize what they are doing to our Christmas? Quote May we be one so that the world may be won. Christian from the cradle to the grave I believe in Hematology.
fccool Posted December 12, 2008 Posted December 12, 2008 It's back down to $45 and dropping... So, relax. So far OPEC schemes to manipulate the prices did not work really well. G... I wonder why? Quote
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