High oil prices

lsudaytrade · Mar 28, 2004

http://cbs.marketwatch.com/news/story.asp?guid={D8B3DBD1-B4A4-4FF4-854A-AC4C5A5EBEBE}&siteid=mktw

I'm not knowledgeable about the history of oil and how it effects our economy. If and WHEN oil hits $40+ would that be detrimental quite possibly causing a HUGE slow down of this "recovery"? or perhaps sending us into a period of recession?

IndexTrader · Mar 28, 2004

Not to worry, some of the world's most renowned economists and ET "elite members" will be along shortly.
With their advice, you'll know whether to be long/short oil tomorrow morning and what the prognostication is for the economy.

Banjo · Mar 28, 2004

Opec's about the money aaaaand getting it before their partners at the table do. How much price driven enmity from the "free" world are they willing to risk. Al Qaeda has shown they are willing to attack Arab producers. What to do, what to do. Is China in a sweet spot because their margins can allow for more expensive oil than the rest of the world and still be the low cost producer? Will the virtual tax of more expensive oil then further drive sales of less expensive Chinese goods thereby growing their industries. Hmmmmm, dicey little games makin' the world go round. Mass transfers of wealth never occur without mass violence. None of it can be figured out in advance. Volatility has a slippery handle.

QdzResurrection · Mar 28, 2004

It's one of those times when high growth bears high prices. We will be just fine. The record of economy growth will blow away negative speculations.

IndexTrader · Mar 28, 2004

Qdz,
You are one eternal optimist!

Quote from QdzResurrection:

It's one of those times when high growth bears high prices. We will be just fine. The record of economy growth will blow away negative speculations.

ratboy88 · Mar 28, 2004

Quote from IndexTrader:

Not to worry, some of the world's most renowned economists and ET "elite members" will be along shortly.
With their advice, you'll know whether to be long/short oil tomorrow morning and what the prognostication is for the economy.

LOL LOL LOL...........like clockwork

hollywood · Mar 28, 2004

since the dollar has lost 35% of its value against the euro over the last two years,if you price crude in 2000 dollars the price would be in the 22 to24 dollar range. Everyone is seemingly still out to lunch on this fact.This is why opec is continually changing production output,to compensate for the cheaper dollar they are still accepting for their product.Idont think anyone in the world would sit still and take 35% in the shorts,(except maybe the japanese).goodluck.

ratboy88 · Mar 29, 2004

good point, but i look at it a different way. if a couple of amateurs like us could figure this out why can't the mainstream media grasp it. only time it gets mentioned on cnbc is when they go into the pits and interview a trader. so bottomline, they know....they just choose to "under report."

Gringinho · Mar 29, 2004

Bloomberg just reported that the Saudis said there is enough oil out there on the markets, and they will be cutting 1 mn barresl/day soon. Saw a little dip on those breaking news.

waggie945 · Mar 29, 2004

Definitely "deflationary".