OPEC accuses U.S. on oil prices

[Andy]

Back in my college days, Andy would have been a welcome addition to our econ class' "drinkers with a running problem" club.

At any rate. Another board had this article which I think is right on the money. With any luck our airlines will see a return to normal market in fuel costs in the nearer term and be able to use increased revenues to begin re-fleeting.

http://reason.com/news/show/125414.html

The other folks I know who were leaders in the shift to commodities are talking about starting to shift back. Strangely it seems like the problem is too much money chasing any idea that appears promising.

There is only a liquidity crisis where there deserves to be a liguidity crisis. Bear Stearns should have been allowed to fail and their investors should have lost their money in a bad investment scheme.

Th US government sure hasn't been rushing to my house to bail me out of the losses in my investments.

Think of commodities (and their prices) as safe haven instruments - moreso than US treasuries. That's one reason why money continues to flow into them. Even cotton, which is totally illogical to me.

Liquidity is only one issue. Solvency is a bigger issue and deleveraging is the biggest issue at the moment.

 

[atpcliff]

Hi!



http://www.ft.com/cms/s/d821c5aa-f387-11dc-b6bc-0000779fd2ac.html

Investors bet on $100 a barrel oil until 2016

By Javier Blas in London
Published: March 16 2008 22:02 | Last updated: March 16 2008 22:02

function floatContent(){var paraNum = "3"paraNum = paraNum - 1;var tb = document.getElementById('floating-con');var nl = document.getElementById('floating-target');if(tb.getElementsByTagName("div").length> 0){if (nl.getElementsByTagName("p").length>= paraNum){nl.insertBefore(tb,nl.getElementsByTagName("p")[paraNum]);}else {if (nl.getElementsByTagName("p").length == 3){nl.insertBefore(tb,nl.getElementsByTagName("p")[2]);}else {nl.insertBefore(tb,nl.getElementsByTagName("p")[0]);}}}}Crude oil futures prices for delivery until 2016 have surged above $100 a barrel as investors bet that oil costs will remain high in the long term even if they weaken in the short because the impact of the US economic slowdown.
Every futures contract until December 2016 finished last week above $100 a barrel for the first time after a strong rally in long-dated futures prices. The Nymex December 2016 future settled on Friday at $103.59 a barrel.
...
Kevin Norrish, of Barclays Capital, which recently increased its 2015 oil price forecast to $135 a barrel, said rising inflation meant the cost of extracting oil from the Canadian tar sands had risen by 300 per cent since 2001 – a steeper increase than that of oil prices over the same period.

cliff
CLL

 

[atpcliff]

Hi!

Sorry...

Investors bet on $100 a barrel oil until 2016

By Javier Blas in London
Published: March 16 2008 22:02 | Last updated: March 16 2008 22:02

Crude oil futures prices for delivery until 2016 have surged above $100 a barrel as investors bet that oil costs will remain high in the long term even if they weaken in the short because the impact of the US economic slowdown.
Every futures contract until December 2016 finished last week above $100 a barrel for the first time after a strong rally in long-dated futures prices. The Nymex December 2016 future settled on Friday at $103.59 a barrel.
...
Kevin Norrish, of Barclays Capital, which recently increased its 2015 oil price forecast to $135 a barrel, said rising inflation meant the cost of extracting oil from the Canadian tar sands had risen by 300 per cent since 2001 – a steeper increase than that of oil prices over the same period.

cliff
CLL