Oil Prices Slide More Than $2.50 a Barrel

[FDJ2]

The crude oil bubble continues to burst. Down another $2+ today. Inventories are up and production is up, this should help the downward pressure on crude oil prices.

 

[lowecur]

The crude oil bubble continues to burst. Down another $2+ today. Inventories are up and production is up, this should help the downward pressure on crude oil prices.

Lots of support at this level. $48.26 200 day moving average will need to be taken out to get a meaningful free fall.

 

[FDJ2]

Lots of support at this level. $48.26 200 day moving average will need to be taken out to get a meaningful free fall.

I agree, but for commodity like crude oil, when the inventories are up and the increase in production is greater then the increase in demand, I would expect the price to continue downward, albeit not at such a rapid rate. There may be a few upticks, but the trend will be down.

 

[chperplt]

48.26 200 day moving average will need to be taken out to get a meaningful free fall

Can you translate this to understandable english please...at least understandable to my ignorant ass.

Thanks

 

[lowecur]

Can you translate this to understandable english please...at least understandable to my ignorant ass.

Thanks

Technical traders use movings averages as signals to buy or sell (stocks or commodities). Moving average is the average price of the commodity the last 200 days. For oil it's $48.26

 

[chperplt]

Thanks

 

[Focus]

Lt Crude June 5/ 49.20
Brent Crude June 5/ 50.60
Unleaded Gas May5/153.65

There it is at the end of Market Today...Enjoy these levels!!!! It will probably come down some more but like I said dont expect it to last very long....There is a reason Pres. Bush says we need more Refineries in this country. There is a reason Major Oil Companies and Refineries did not trade down on these future contracts falling off today..The SMART MONEY is sticking to its GUNS. Like Ive said before, if your companies not hedging at below $50/bbl you will be out of a job. This is merely a token of generosity to stimulate a faltering consumer sentiment...Dont look for the prices at the pump to come down...They never come down as fast as they go up....So here we are off to the RACES....Its going to get very interesting from here....See ya Guys

 

[FDJ2]

Lt Crude June 5/ 49.20
Brent Crude June 5/ 50.60
Unleaded Gas May5/153.65

There it is at the end of Market Today...Enjoy these levels!!!! It will probably come down some more but like I said dont expect it to last very long....There is a reason Pres. Bush says we need more Refineries in this country. There is a reason Major Oil Companies and Refineries did not trade down on these future contracts falling off today.

Don't take this the wrong way, but I have to ask how does a shortage in refineries effect the price of crude oil? That's kind of like saying that a shortage of breweries increases the price of hops and barley.

Also, the price at the pump has been driven by the cost of the basic material, crude oil. When the price of crude goes up, so do the prices at the pump, likewise when the price of crude goes down, the price at the pump goes down although at a slower pace as we have all seen.

For a commodity like crude oil, when inventories are high and production out paces demand there is only one direction for the price of that commodity to go.

 

[chperplt]

how does a shortage in refineries effect the price of crude oil?

It doesn't....but it does effect the price of a gallon of gas. What the losers..err.. I mean experts said today what that the price of gas will stay high irregardless of the cost of oil. We don't have enough refineries to process the oil which will keep the cost up.. So says the idiots..I mean experts.

 

[FDJ2]

It doesn't....but it does effect the price of a gallon of gas. What the losers..err.. I mean experts said today what that the price of gas will stay high irregardless of the cost of oil. We don't have enough refineries to process the oil which will keep the cost up.. So says the idiots..I mean experts.

Understood, but we have the same refinery capacity in the US as last year, with perhaps only a marginal increase in demand, which does not justify approximately a 50% increase in cost. The cost at the pump is primarily driven by the cost of the prime material, crude oil. If the price of crude drops, as it most likely will, the price at the pump will most likely also go down, albeit not at the same rate and perhaps not as far, but down it should go. But then again, all of us, including the analyst and experts, can only speculate.