Oil & Gas 01 (May 08 - Jul 08)

[HengHeng]

Oil rebound 5 bucks today.


sobs .. only caught the rebound , haiz .. was busy thinking why inventories drop yet oil price decrease.. another mistake learnt .. wack first follow intuition ... think for reason later.. .. the other side too fast today never think just wack .... sobs ..

would be flipping again. This one i think last push for the moment.

Frankly speaking , i'm still very bearish on the general outlook on US and it is not really anything better elsewhere expecially with the reduction in subsidies in the other countries. Well we are protected in some sense while other (no subsidy nevermind still kana taxed). LOL great work from the garmen .. so our pain would be lesser than others.

Turtle recently just went in town , i found another gantry ? WTF , 2 gantries just to go for city hall ?? Wow , it is simply stupid to drive into towns nowadays . Expecially with higher oil prices. Haiz .. lucky i never buy a car but i guess i would have to pay higher transport cost expecially on cab fairs.

[kennynah]

>$5 in a day...historical increase in dollar term... shorts kena squeezed like f*** including my Put on oil related counter.... sigh..

nevermind why price did a superman...it happened...that's what is important...

[HengHeng]

Heres the reason.


Crude Oil Is Steady After Rallying More Than $5 on Dollar Drop

By Mark Shenk

June 6 (Bloomberg) -- Crude oil was little changed after rallying more than $5 yesterday as the dollar dropped against the euro on statements that the European Central Bank may boost interest rates to cut inflation.

The euro rebounded after ECB President Jean-Claude Trichet said the bank may raise rates next month. Investors looking to hedge against the dollar's falling value have helped lead oil, gold and corn to records this year.
``A year ago there would have had to be a disruption or political event to trigger a $5 move, but that's no longer the case,'' said Chip Hodge, a managing director at MFC Global Investment Management in Boston, who oversees a $4.5 billion energy-company bond portfolio. ``The only rational reason is the falling dollar.''

Crude oil for July delivery rose 22 cents to $128.01 a barrel at 8:35 a.m. Sydney time in after-hours trading on the New York Mercantile Exchange. Futures reached a record $135.09 a barrel on May 22 and are up 94 percent from a year earlier.

Yesterday, oil rose $5.49, or 4.5 percent, to $127.79 a barrel, the highest close since May 28. It was the biggest one- day gain since March 26. Prices rose as much as $6.08 a barrel in after-hours electronic trading.

``This huge move is attributed to the weaker dollar,'' said Nauman Barakat, senior vice president of global energy futures at Macquarie Futures USA Inc. in New York. ``If the Europeans decide to raise interest rates, the dollar will be back on skid row.''

Brent crude oil for July settlement rose $5.44, or 4.5 percent, to settle at $127.54 a barrel yesterday on London's ICE Futures Europe exchange. It was the biggest single-day gain since Dec. 12. Prices reached a record $135.14 on May 22.

Rate Policy

``It's not excluded that, after having carefully examined the situation, that we could decide to move our rates for a small amount at our next meeting,'' said Trichet at a press conference in Frankfurt after the ECB left its benchmark rate at 4 percent. ``I didn't say it's certain. I said it's possible.''

ECB policy makers have not followed the Federal Reserve and the Bank of England in cutting interest rates. Oil rose 52 percent since Sept. 18 when the Fed began curbing rates to bolster an economy already reeling from a credit crisis. The Euro advanced 11 percent against the dollar in the period.

``The moment Trichet opened his mouth we saw the dollar reverse course and oil jump,'' said Phil Flynn, senior trader at Alaron Trading Corp. in Chicago. ``Monetary policy has been the primary driver of this market this year.''

The dollar traded at $1.5597 per euro at 6:06 a.m. in Tokyo, after falling 1 percent yesterday, the most since March.

Commodity Impact

``When the dollar is weak, commodities that are denominated in the dollar become less expensive to buy for those holding other currencies,'' said Peter Beutel, president of energy consultant Cameron Hanover Inc. in New Canaan, Connecticut. ``As a result of this we have to pay more in dollar terms to get the commodity that we need.''

Futures earlier dropped to $121.61 yesterday, the lowest since May 15, amid falling demand and increasing supply of fuel in the U.S., the country responsible for almost 25 percent of global consumption.

``The fundamentals don't support these prices,'' Hodge said. ``Demand is starting to take a hit here in the U.S. Asian countries are taking back subsidies, which will cut demand in those countries.''

India and Malaysia raised fuel prices this week, joining Indonesia and Taiwan in moves that may cut Asian demand and slow global oil-consumption growth.

Airline Pain

Continental Airlines Inc. will cut 3,000 jobs and shrink its jet fleet by 18 percent, becoming the fourth major U.S. carrier to slash payrolls and flights as soaring fuel prices push the industry to its worst losses since Sept. 11. United Airlines, the second-largest U.S. carrier, said June 4 it was shutting its low-fare Ted brand and retiring 70 planes.

Raymond James Financial Inc. and Lehman Brothers Holdings Inc. raised their crude-oil price forecasts on June 2 on signs that supply growth will trail demand.

``I know that unless someone discovers a lot of oil, it can go to $150, $200'' a barrel, Jim Rogers, chairman of Rogers Holdings, said in a Bloomberg Television interview. ``The facts are the world is running out of known oil reserves.''

[kennynah]

thanks for highlight...!!

[HengHeng]

Hmmm oil spikes another 10 bucks .. with bad NFP numbers.

Hmmm forward looking i think a correction is in the waiting. Do becareful.

[LenaHuat]

Demand destruction instead of supply boost will cause oil price to correct.
But that will take time I see oil spiking up towards $150 b4 a correction takes place. The players in the oil mart got padded pockets..............less driven by small-time investors.

[kennynah]

i probably not follow fundamentals on Oil price movement... i'm not able to consistently correlate fundamentals to price of Oil at this time... as such, i will follow the chart patterns to determine entry and exits... MS just stated pre-market today target price $150 before 4th Jul08...maybe these fellas are wlecoming patsies for their unwinds.

[kennynah]

ha !

hit new high history in the making...

>135.25pbl....

((edited ...a few mins later))

now >$8.30... aiya...must as well... LIMIT UP to $10...lah... get it over with...

[kennynah]

wah piang....

Oil Trading Pit's LIMIT UP $10...and still rising...becos electronic trading LIMIT UP is $20

[HengHeng]

wah do until hand sweat sia .. up up and away. I think monday market sure got doomsday effect