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2008-05-08 -Short Attention Span Theater-

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Posted by Mike 2008-05-08 15:40|| || Front Page|| [5 views ] Top

#1 US Oil demand is down about a half-million barrels a day compared to this time last year. I suspect the US is not alone in reducing oil consumption in the face of higher prices. Iran might well have to look for places to store their oil. The Saudis have been leasing tankers for storage for some time.

Posted by crosspatch 2008-05-08 15:57|| 2008-05-08 15:57|| Front Page Top

#2 The SPR is full, too.

Posted by gromky 2008-05-08 16:24|| 2008-05-08 16:24|| Front Page Top

#3 This news is 5 or 6 days old.

Posted by phil_b 2008-05-08 17:30|| 2008-05-08 17:30|| Front Page Top

#4 The price is up because the dollar is down. That's the long and, er, short of it. Hedge funds have helped with this, but since most oil contracts are priced in dollars, when the dollar goes down and stays down, oil goes up.

Posted by Steve White">Steve White 2008-05-08 17:44|| 2008-05-08 17:44|| Front Page Top

#5 And who could have an interest in pushing the dollar down? And enough dollars to make it stick? And a healthy demand for oil?

Posted by Nimble Spemble 2008-05-08 18:13|| 2008-05-08 18:13|| Front Page Top

#6 And who could have an interest in pushing the dollar down?

The Fed. When the government buys products or services, no matter how inflated or under performing, it get 'something' in return. When the Fed dumps billions and billions of dollars on the credit/speculation market, it gets nothing and the money gravitates towards were the players think they can get a optimal return.

Posted by Procopius2k 2008-05-08 18:23|| 2008-05-08 18:23|| Front Page Top

#7 hhhmmmmm TAIWAN!, er...nooo... that's not it.... shoot, I give up

Posted by Frank G">Frank G 2008-05-08 18:23|| 2008-05-08 18:23|| Front Page Top

#8 And who could have an interest in pushing the dollar down? And enough dollars to make it stick?

(At least till after the election)

Posted by DMFD 2008-05-08 19:17|| 2008-05-08 19:17|| Front Page Top

#9 Hint, guys. It starts with "Chi" and ends with "na".

Posted by lotp 2008-05-08 19:20|| 2008-05-08 19:20|| Front Page Top

#10 And who could have an interest in pushing the dollar down?

The Fed is the right answer. Solving the states debt problems by deflating the currency goes back several thousand years.

China and any other country holding USD currency and notes are the big losers.

And a piece of trivia for you. The USA is the only major economy that doesn't hold its reserves in other currencies. Almost all the reserves are in gold.

Posted by phil_b 2008-05-08 19:31|| 2008-05-08 19:31|| Front Page Top

#11 China is not a loser, it is an investor. It gets the administration it wants in Washington. The last time the donks were in DC they gave the Chicoms all the technology to make accurate ICBMs. Goodness knows what BO and friends will give them.

I don't disagree that the fed is at fault, but not for the current run up in oil prices. The fed has been inflating for at least the last 11 years, with no discernable effect.

But suddenly six months before an election the price of oil doubles. Just a coincidence, I'm sure.

Posted by Nimble Spemble 2008-05-08 19:38|| 2008-05-08 19:38|| Front Page Top

#12 no way, lotp! Reeaaalllyy?

Posted by Frank G">Frank G 2008-05-08 19:47|| 2008-05-08 19:47|| Front Page Top

#13 Well gosh, Frank, I dunno ... just a guess ....

Posted by lotp 2008-05-08 20:02|| 2008-05-08 20:02|| Front Page Top

#14 But it is indeed linked to federal decisions here too. China refused to revalue the ren to bring it more into line with reality. Euros tried to work with Iran to shift oil pricing into Euros.

A weak $$ counters both of those moves, although it's pretty damned painful for consumers for a while.

Posted by lotp 2008-05-08 20:08|| 2008-05-08 20:08|| Front Page Top

#15 The weak dollar is pretty bad for EADS (Airbus) as well per another article here. Silver lining I suppose.

Posted by tipover 2008-05-08 20:17|| 2008-05-08 20:17|| Front Page Top

#16 EADS is mousenuts.

Posted by Nimble Spemble 2008-05-08 20:20|| 2008-05-08 20:20|| Front Page Top

#17 Soros. He needs the misery to help his one-worlder socialists do well in the fall elections in the US. So he tries to cause pain in the economy (via hedge funds, shorting and other manipulations he and his cronies can accomplish) and the press will do its part and lay the blame on the Republicans in spite of Bush having no power and the Dems running the congress.

Given we can sustain $100 bbl crude, I propose that the Feds maintain that as a floor price by taxing anything imported below that (other than from Canada) to get it up to $100.

This will reduce the risk for developers of alternate petroleum sources (shales, older wells, coal gassification, etc) from getting the legs knocked out from under them - and encourage domestic production and domestic alternatives.

If we are going to pay a lot for our pil, then lets keep the money over here instead of funding Mad Mullahs in Iran, Saudi Wahabbists, Venezuelan FARC-ers like Hoogo and other terrorists.

Posted by OldSpook 2008-05-08 22:09|| 2008-05-08 22:09|| Front Page Top

#18 When the dollars down (inflation), it takes more dollars to buy a barrel of oil. Since just the movement of goods in this country is based on oil, it takes more dollars to buy everything--it really puts the brakes on the economy.

Posted by JohnQC 2008-05-08 22:21|| 2008-05-08 22:21|| Front Page Top

#19 IIRC, DEFENSENEWS [2007] > US DEPT OF ENERGY reportedly was seeking inter-nation collusion organz and networking wid CANADA + MAHICO AS PER NATION-SPECIFIC STRATEGIC RESERVES.

Posted by JosephMendiola 2008-05-08 22:44|| 2008-05-08 22:44|| Front Page Top

#20 Given we can sustain $100 bbl crude, I propose that the Feds maintain that as a floor price by taxing anything imported below that (other than from Canada) to get it up to $100.

I'd throw in Mexico and Columbia as well, since they both seem to wind up being excreted upon by the same people as we do.

Posted by Abdominal Snowman 2008-05-08 23:00|| 2008-05-08 23:00|| Front Page Top

23:57 McZoid
23:52 McZoid
23:52 JosephMendiola
23:50 USN,Ret. (from home)
23:45 JosephMendiola
23:30 JosephMendiola
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23:08 Secret Master
23:00 Abdominal Snowman
23:00 Procopius2k
22:59 Abdominal Snowman
22:44 JosephMendiola
22:39 Abdominal Snowman
22:39 JosephMendiola
22:34 JosephMendiola
22:29 g(r)omgoru
22:23 JosephMendiola
22:22 Gromoling Dark Lord of the Sith7535
22:21 JohnQC
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22:11 OldSpook