Current Oil Price

Blue Peter · Post by **Blue Peter** » 05 May 2010, 14:55

Down below $80?

Dollar rising? or people sensing that there might be a double dip?

Peter.

PS_RalphW · Post by **PS_RalphW** » 05 May 2010, 15:04

It's just the Greek deficit rioting is spooking the markets and commodities.

Chindia is still buying all the oil it can lay hands on. US demand is recovering, so price is up in spite of overflowing US storage.

Long term futures are back over $100 on the probability that the GOM spill will set back US production 5 years out.

As the film said, there will be blood.

RenewableCandy · Post by **RenewableCandy** » 05 May 2010, 16:00

RalphW wrote:It's just the Greek deficit rioting is spooking the markets and commodities.

Funny, I'd have thought people would go for commodities when it looks dodgy?

syberberg · Post by **syberberg** » 05 May 2010, 16:14

RalphW wrote: China is buying oil like there is no tomorrow.

I wonder if they're looking to increase their storage by taking advantage of the Western recession by buying the "surplus", or just a general increase in demand?

biffvernon · Post by **biffvernon** » 06 May 2010, 20:10

At below $77 it's dropped $10 in the last 3 days.

biffvernon · Post by **biffvernon** » 07 May 2010, 18:17

Below $75. Are the markets expecting part two of the Recession? Will the pound slip faster, keeping UK petrol prices high?

biffvernon · Post by **biffvernon** » 14 May 2010, 20:16

Going down: $71 today.

Post by **clv101** » 14 May 2010, 21:34

biffvernon wrote:Are the markets expecting part two of the Recession?

Isn't everyone? however you look at things, the global economy is in worse shape now than it was in 2007. Further negative growth seems inevitable.

biffvernon · Post by **biffvernon** » 14 May 2010, 22:29

Indeed, though the direction of change in the short term oil price is less clear.

emordnilap · Post by **emordnilap** » 17 May 2010, 11:35

Can anyone say what effect the dollar/euro relationship, which is apparently not good, has on the ticker price below?

Post by **adam2** » 17 May 2010, 12:39

I dont think that modest changes in the relative value of the dollar and the euro will have much effect on the oil price, in dollars.

A really bad crash in the euro would make oil more costly in euroland, relative to wages, and therefore depress demand, and likely lead to a fall in dollars per barell.

However relatively small changes would probably have little discernable effect.

biffvernon · Post by **biffvernon** » 17 May 2010, 13:46

What has happened is that we now have higher than ever petrol prices at the pump despite spot crude price at half the record maximum.

PS_RalphW · Post by **PS_RalphW** » 17 May 2010, 13:51

there is a glut of oil in the US at the moment, (they have so much they can't even be bothered to pump it all ashore

). This had lead to the WTI benchmark price falling more than $6 below Brent crude. It usually costs more. This in spite of demand recovery in the US.

I haven't crunched the numbers, but with both Sterling and Euro falling sharply against the dollar, Brent at $78 is probably not much cheaper than
it was at $89, a couple of weeks ago.

ziggy12345 · Post by **ziggy12345** » 20 May 2010, 18:39

$64??????

What happened?

PS_RalphW · Post by **PS_RalphW** » 20 May 2010, 20:00

The monthly contract expired. Some futures traders got stranded with oil which nobody wanted to take physical posession of. They had to sell at a big discount.

The new 'front month' price is currently back to $71.