Oil rises to new six-month high.....Do I hear $75, $100, $150, $300

[capmac]

Oil soars above $71, hitting 2009 high

Oil soars above $71 as 3-month rally continues, reaching 2009 high

* George Jahn, Associated Press Writer
* On Wednesday June 10, 2009, 6:35 am EDT

VIENNA (AP) -- Oil prices soared above $71 a barrel Wednesday to reach a 2009 high, as investors poured money into crude markets to protect themselves against the inflation risks posed by a weakening U.S. dollar.

Oil, which typically trades inversely to the dollar, has more than doubled in price in three months as traders also cheered news showing the worst of a severe U.S. recession is likely over. They brushed off data -- such as a 9.4 percent U.S. unemployment rate in May -- that suggest crude demand will remain weak. Even growing inventories have not checked crude's stellar rise.

Benchmark crude for July delivery was up $1.35 at $71.36 a barrel by noon in European electronic trading on the New York Mercantile Exchange. On Tuesday, it jumped $1.92 to close at $70.01.

"I wouldn't be surprised if we're testing $80 in a week or two," said Gerard Rigby, energy analyst with Fuel First Consulting in Sydney. "The momentum right now is too strong."

http://finance.yahoo.com/news/Oil-s...86210.html?sec=topStories&pos=2&asset=&ccode=

 

[Landis82]

Quote from S2007S:

$75 ever so close, maybe $80 next week, will be getting very close to shorting oil. No chance what so ever of a turn around in this economy with oil moving higher, the economy cannot sustain any growth with skyrocketing oil prices. $85+ oil will feel like $130+ oil in todays slow economy.

Spoken by someone that kept posting month after month about how the "fair value" for crude oil is $35.00

You have no credibility.
Go home.

 

[Ivanovich]

This is all a weak dollar story. If the Fed signals their intention to raise rates, the dollar should gain significantly, and oil will take a rather large hit. Who knows how large, that's for the pros. I'm not a pro.

 

[ByLoSellHi]

Quote from Ivanovich:

This is all a weak dollar story. If the Fed signals their intention to raise rates, the dollar should gain significantly, and oil will take a rather large hit. Who knows how large, that's for the pros. I'm not a pro.

Am I mistaken if I state that Bernanke has put himself in a huge bind?

He's really going to be forced to deal with the possibility that he'll have to raise rates - in this economy?

Wow.

One other thing - It won't be long before people get very pissed about gasoline prices and Congress starts to meddle again, IMO. You may see the same types of hearings in Congress that were held when oil was at $148/barrel if it now hits $80, especially since gasoline is near $3 per gallon already, and was $4 per gallon with oil twice as much per barrel (I realize the issues refining utilization have to do with this, but I doubt the average, angry consumer does).

Edit - 5 minutes after I posted this, there's talk on the news of 'speculators' and 'dark markets' by a Congresswoman.

 

[Ivanovich]

Personally, I think he knows and wants to raise rates once the banks are on sure footing. I think he keeps QE going with more purchases, but raises rates.

Bernanke has always been only about the banks. He doesn't care about the public.

 

[Ivanovich]

Quote from ByLoSellHi:


One other thing - It won't be long before people get very pissed about gasoline prices and Congress starts to meddle again, IMO. You may see the same types of hearings in Congress that were held when oil was at $148/barrel if it now hits $80, especially since gasoline is near $3 per gallon already, and was $4 per gallon with oil twice as much per barrel (I realize the issues refining utilization have to do with this, but I doubt the average, angry consumer does).

The rage against the speculation in energy prices will be louder this time and something will have to be done about it. That's my guess.

 

[limitdown]

Quote from Ivanovich:

The rage against the speculation in energy prices will be louder this time and something will have to be done about it. That's my guess.

creakk....

creeekkkk...

ka-poohhh--ieeess

there goes the recovery.....

keep pushing oil higher....

 

[usman88]

Quote from Ivanovich:

The rage against the speculation in energy prices will be louder this time and something will have to be done about it. That's my guess.

doesnt matters
speculators will always find one way or another. Moreover never EVER expect any stringent regulations because that would hurt the basic funciton of futures market i.e. hedging.

And in any case we have ICE, and now Dubai Mercantile Exchange where crude can be speculated no in short no worries

 

[gigsup]

Quote from Ivanovich:

The rage against the speculation in energy prices will be louder this time and something will have to be done about it. That's my guess.

Do you really think the Fed will be able to do anything about it this time around? Looks like they are out of ammo.

 

[S2007S]

Who knows how high its heading but talk of rates going back up to .50% or even .75% could knock crude oil down $10.00+


Oil will take the stairs and move higher however when the drop in oil does come into play its taking the elevator down. Its going to free fall, there is no demand for oil what so ever, the only thing propping it up is the collapsing dollar and thought of higher inflation. The demand involving china, any emerging markets or the US has completely diminished, time to get real, oil is going to reach a top sooner than later and plummet straight down. Oil at $75+ and I will be buying SCO. No way possible can oil sustain any move above $100 this time around.