Oil May Drop to $30 as Investors

[tmorr37]

Oil May Drop to $30 as Investors (http://lucianne.com/threads2.asp?artnum=323782) Flee, Bernstein Says (http://lucianne.com/threads2.asp?artnum=323782)

Bloomberg News, by Nicholas Larkin Original Article (http://www.bloomberg.com/apps/news?pid=20601087&sid=aNsPYXxId7IM&refer=worldwide)

Posted By: Photoonist (http://lucianne.com/person.asp?pname=Photoonist) - 2/14/2007 2:25:20 PM London - Oil will drop more than 30 percent to $40 a barrel in March and may drop to $30 as rising prices for storing crude lead to a `breaking point' that forces speculators to sell, Sanford C. Bernstein & Co. said. Oil will slide because greater investment in commodity futures has driven the market into contango, according to analysts led by London-based Neil McMahon. The phenomenon occurs when futures prices rise above spot prices, often reflecting handling or storage costs. /snip/ The ``breaking point'' could come in March if Saudi Arabia, OPEC's largest producer, fails to cut production below 8 million barrels per day

[MrAustin]

thats good news, my gold will be cheaper! w00t!

[AJOB]

Oil May Drop to $30 as Investors (http://lucianne.com/threads2.asp?artnum=323782) Flee, Bernstein Says (http://lucianne.com/threads2.asp?artnum=323782)


Bloomberg News, by Nicholas Larkin Original Article (http://www.bloomberg.com/apps/news?pid=20601087&sid=aNsPYXxId7IM&refer=worldwide)

Posted By: Photoonist (http://lucianne.com/person.asp?pname=Photoonist) - 2/14/2007 2:25:20 PM London - Oil will drop more than 30 percent to $40 a barrel in March and may drop to $30 as rising prices for storing crude lead to a `breaking point' that forces speculators to sell, Sanford C. Bernstein & Co. said. Oil will slide because greater investment in commodity futures has driven the market into contango, according to analysts led by London-based Neil McMahon. The phenomenon occurs when futures prices rise above spot prices, often reflecting handling or storage costs. /snip/ The ``breaking point'' could come in March if Saudi Arabia, OPEC's largest producer, fails to cut production below 8 million barrels per day


Not good!!! the Iraq budget is based on $50 oil

[Ialdoboath]

Not good!!! the Iraq budget is based on $50 oil

GOOD NEWS... how do ya suppose they might make up the difference if their budget is based on $50.00 oil and 1260:1 dinar? Increase the value of the dinar to compensate...

[tmorr37]

Even if Saudi Arabia cuts production, it is effectively creating underground storage, exacerbating the problem by encouraging further oversupply and making any future correction even worse,'' the Bernstein analysts said.

[tmorr37]

Somethings are not told and I bet with all these oil companies running around oil production is higher then what we hear.

[Ialdoboath]

Somethings are not told and I bet with all these oil companies running around oil production is higher then what we hear.

I think we are seeing the fruits of Cheneys labour. He went to Saudi Arabia awhile ago to negotiate. I think a deal was struck to further imperil the Iranian economy by deliberately decreasing the price of oil to where it hurts Iran. SA are well prepared for it though, having sold into strategic reserves for months now.
JMHO...

[Midnight Tide]

Hell I like cheaper oil, if it goes for 30 dollars....my commute to mississauga has gotten a heck of a lot cheaper....gonna save money every week...

[Wolverine]

i don't expect to see oil go below $40 in the next 40 months, I'd be willing to bet it stays above $50 for the next fifty months

[Majestic]

$30 oil is good for the US economy. The unemployment rate will go under 4% for sure, and the Dow will hit 40,000! :happy64:

[MrAustin]

but our enviroment will colapse..

[Howler]

All of these so called experts are full of it.
Not too long ago they were all saying oil would hit 100$ a barrel.

[Pimpmaximus]

GOOD NEWS... how do ya suppose they might make up the difference if their budget is based on $50.00 oil and 1260:1 dinar? Increase the value of the dinar to compensate...


How about increasing production and diversifying the economy...........

[Wolverine]

$30 oil is good for the US economy. The unemployment rate will go under 4% for sure, and the Dow will hit 40,000! :happy64:

$60. oil is GOOD for the economy !:happy64:

[Wolverine]

but our enviroment will colapse..

if we all park our gas guzzlers tomorrow & start walking everywhere in hemp sandals our environment won't change in is this lifetime....if we don't , i doubt it will "colapse" in this lifetime either:happy26:

[Chaka]

More to this that what you are seeing

Govt officials figured out that by suppressing oil to $ 30 /barrel
Iranian govt will be in the red unable to use profits to funnel to insurgency

coupled with Sanctions that will be coming--- Iran will come under heavy pressure in the coming months

Who will be there to fill the void Iran leaves in oil production?

IRAQ


Combines with a flood of foreign investment creating a prosperous economic environment that hopefully the Iranian shiite population will become envious of and demand they begin to receive funds from oil profits as their Iraqi shiite (predominately) brothers are..


Geopolitical Chess game continues.....................

[MrAustin]

if we all park our gas guzzlers tomorrow & start walking everywhere in hemp sandals our environment won't change in is this lifetime....if we don't , i doubt it will "colapse" in this lifetime either:happy26:

perhaps, it is still ones opinion.. no one knows.. and i prefer the logical route.. we trash planet kills us.. :)

[oldskiier]

More to this that what you are seeing

Govt officials figured out that by suppressing oil to $ 30 /barrel
Iranian govt will be in the red unable to use profits to funnel to insurgency

coupled with Sanctions that will be coming--- Iran will come under heavy pressure in the coming months

Who will be there to fill the void Iran leaves in oil production?

IRAQ


Combines with a flood of foreign investment creating a prosperous economic environment that hopefully the Iranian shiite population will become envious of and demand they begin to receive funds from oil profits as their Iraqi shiite (predominately) brothers are..


Geopolitical Chess game continues.....................

This has been going on sense Chaney's visit to Sadia Arabia last Sept....we have been at war with Iran ever sense....every time I go to get gas I get excited over the low prices !!!! Just look around folks !!! thanks are changing big time !!!! Violence down 80% in Baghdad no U.S deaths in four days .....FOX News is so positive right now it's crazy !!!! ..the Dems better hurry or they are going to miss the war ...LOL............:happy64:

[Joel57]

More to this that what you are seeing

Govt officials figured out that by suppressing oil to $ 30 /barrel
Iranian govt will be in the red unable to use profits to funnel to insurgency

coupled with Sanctions that will be coming--- Iran will come under heavy pressure in the coming months

Who will be there to fill the void Iran leaves in oil production?

IRAQ


Combines with a flood of foreign investment creating a prosperous economic environment that hopefully the Iranian shiite population will become envious of and demand they begin to receive funds from oil profits as their Iraqi shiite (predominately) brothers are..


Geopolitical Chess game continues.....................

I agree, and in theory this is great. I believe this is a main reason for the US pushing hard for the HCL, and with good reason.....without help from foreign oil companies Iraq won't be able to fill the void with it's current oil production. Once Iraq can fill the void, heavy sanctions can be imposed on Iran.......I LOVE IT.

[Finn]

if we all park our gas guzzlers tomorrow & start walking everywhere in hemp sandals our environment won't change in is this lifetime....if we don't , i doubt it will "colapse" in this lifetime either:happy26:
But we will neve get where we are going lol