Comments on: So it apparently was the speculators after all http://www.dinocrat.com/archives/2007/11/14/so-it-was-the-speculators-after-all/ Sat, 10 Jan 2009 00:31:38 +0000 http://wordpress.org/?v=2.6.3 By: Rod Adams http://www.dinocrat.com/archives/2007/11/14/so-it-was-the-speculators-after-all/#comment-302142 Rod Adams Wed, 21 Nov 2007 09:30:54 +0000 http://www.dinocrat.com/archives/2007/11/14/so-it-was-the-speculators-after-all/#comment-302142 Yesterday's edition of the Wall Street Journal quoted a number of oil industry executives who indicated that oil production rate is unlike to ever exceed 100 million barrels of oil per day. The world production rate is currently 85 million barrels of oil per day, but many predicting agencies like the IEA and the US Energy Information Agency confidently predict that the world production rate will continue to increase through 2030 to a rate of 120 million barrels of oil per day. Wonder whose models are correct? If the oil executives are right, the world will need to adjust the balance between supply and demand. Today, the market price of oil is back up to more than $98 per barrel after just a week of lower prices. Yesterday’s edition of the Wall Street Journal quoted a number of oil industry executives who indicated that oil production rate is unlike to ever exceed 100 million barrels of oil per day. The world production rate is currently 85 million barrels of oil per day, but many predicting agencies like the IEA and the US Energy Information Agency confidently predict that the world production rate will continue to increase through 2030 to a rate of 120 million barrels of oil per day.

Wonder whose models are correct? If the oil executives are right, the world will need to adjust the balance between supply and demand.

Today, the market price of oil is back up to more than $98 per barrel after just a week of lower prices.

]]> By: gs http://www.dinocrat.com/archives/2007/11/14/so-it-was-the-speculators-after-all/#comment-302127 gs Wed, 14 Nov 2007 23:55:21 +0000 http://www.dinocrat.com/archives/2007/11/14/so-it-was-the-speculators-after-all/#comment-302127 Did the the merchant banks that wrote the options for $100 oil conduct a bear raid on oil in order to make them expire worthless? The possibility does not conflict with the economic considerations cited by Dinocrat: conditions for a bear raid are propitious when the raid is aligned with fundamentals. According to <a href="http://finance.yahoo.com/" rel="nofollow">Yahoo!'s</a> 4:30 market report,<blockquote>Crude oil rallied 2.9% to $93.78 per barrel. Bloomberg.com reports that today's rise in oil prices was due to speculation that U.S. stockpiles will show a draw tomorrow, and that its recent sell-off was overdone.</blockquote>Just sayin'... Did the the merchant banks that wrote the options for $100 oil conduct a bear raid on oil in order to make them expire worthless? The possibility does not conflict with the economic considerations cited by Dinocrat: conditions for a bear raid are propitious when the raid is aligned with fundamentals.

According to Yahoo!’s 4:30 market report,

Crude oil rallied 2.9% to $93.78 per barrel. Bloomberg.com reports that today’s rise in oil prices was due to speculation that U.S. stockpiles will show a draw tomorrow, and that its recent sell-off was overdone.

Just sayin’…

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