Oil & Gas 01 (May 08 - Jul 08)

[winston]

Bush urges more oil exploration in US territory
Posted: 12 July 2008 2354 hrs

WASHINGTON : Faced with skyrocketing gasoline prices, US President George W. Bush called Saturday for more oil exploration in US territory -- and blamed Democratic-controlled Congress for lack of action on the issue.

"One of the factors driving up high gas prices is that many of our oil deposits here in the United States have been put off-limits for exploration and production," the president said in his weekly radio address.

"Past efforts to meet the demand for oil by expanding domestic resources have been repeatedly rejected by Democrats in Congress," he added.

Bush proposed increased drilling on the US continental shelf, expanding shale oil production on the western slopes of the Rocky Mountain, permitting oil exploration in northern Alaska, and enhancing the nation's oil refining capacity.

"It's time for members of Congress to address the pain that high gas prices are causing our citizens," Bush argued. "Every extra dollar that American families spend because of high gas prices is one less dollar they can use to put food on the table or send a child to college."

Oil prices rocketed to records above 147 dollars on Friday as traders seized on the weak US currency, simmering tensions over Iran and Nigeria and news of a looming strike in Brazil.

- AFP /ls

[winston]

Bush urges more oil exploration in US territory
Posted: 12 July 2008 2354 hrs

WASHINGTON : Faced with skyrocketing gasoline prices, US President George W. Bush called Saturday for more oil exploration in US territory -- and blamed Democratic-controlled Congress for lack of action on the issue.

"One of the factors driving up high gas prices is that many of our oil deposits here in the United States have been put off-limits for exploration and production," the president said in his weekly radio address.

"Past efforts to meet the demand for oil by expanding domestic resources have been repeatedly rejected by Democrats in Congress," he added.

Bush proposed increased drilling on the US continental shelf, expanding shale oil production on the western slopes of the Rocky Mountain, permitting oil exploration in northern Alaska, and enhancing the nation's oil refining capacity.

"It's time for members of Congress to address the pain that high gas prices are causing our citizens," Bush argued. "Every extra dollar that American families spend because of high gas prices is one less dollar they can use to put food on the table or send a child to college."

Oil prices rocketed to records above 147 dollars on Friday as traders seized on the weak US currency, simmering tensions over Iran and Nigeria and news of a looming strike in Brazil.

- AFP /ls

[millionairemind]

Bush urges more oil exploration in US territory
Posted: 12 July 2008 2354 hrs

WASHINGTON : Faced with skyrocketing gasoline prices, US President George W. Bush called Saturday for more oil exploration in US territory -- and blamed Democratic-controlled Congress for lack of action on the issue.

"One of the factors driving up high gas prices is that many of our oil deposits here in the United States have been put off-limits for exploration and production," the president said in his weekly radio address.

He sat on his butt for eight whole years during his Presidency when during his first term, congress was controlled by Republican and he could have done more, much more on this issue.

He will probably go down as the WORST PRESIDENT in US history

[mojo_]

This definitely belongs to the Laugh/Smile thread or Conspiracy Theory Thread

Here's another one..

Another recent headline that caused oil price to spike: "Iran successfully test fired on Wednesday longer range Shahab-3 missile with a range of 2000-kilometer and a conventional warhead weighing one ton."


Commentary from: http://www.armscontrolwonk.com/

Based on analysis of the available launch footage, it is apparent that the missile launched yesterday is, in fact, an older, shorter range version Shahab-3A. Right off the bat, the footage shows a missile that looks strikingly similar to the baseline Shahab-3A. It has no outwardly identifying characteristics – a second stage, for example – to immediately differentiate it from the 3A. This leaves open the possibility that the “extended range Shahab-3” is just a longer version of the baseline 3A – same diameter, longer length first stage to accommodate more fuel. The difference in length would be apparent in a comparison of images of the launch today to images of the baseline Shahab-3A. However, just such a comparison reveals no difference.

The Shahab-3, a Nodong-1 derivative, is known to have a length of about 16 meters and a diameter of roughly 1.3 meters. Fixing the diameter of the missile launched today to that 1.3 meter diameter reveals a missile with an identical length. Both Shahab-3 missiles have the same length-width ratio of about 12.3:1. Unless the Iranians decided to build a proportionally larger Shahab-3 – which wouldn’t really make it a Shahab-3 at all – or managed to increase the ISP of the Shahab-3 from 230 to about 285, the missile launched today is just the same 1,200 km range Nodong-1 knockoff the Iranians have had functional since as early as 1998.

[kennynah]

Clear to me that he ensure no over supply so that he n his cronies can profit from the higher oil price

Bush urges more oil exploration in US territory
Posted: 12 July 2008 2354 hrs

WASHINGTON : Faced with skyrocketing gasoline prices, US President George W. Bush called Saturday for more oil exploration in US territory -- and blamed Democratic-controlled Congress for lack of action on the issue.

"One of the factors driving up high gas prices is that many of our oil deposits here in the United States have been put off-limits for exploration and production," the president said in his weekly radio address.

He sat on his butt for eight whole years during his Presidency when during his first term, congress was controlled by Republican and he could have done more, much more on this issue.

He will probably go down as the WORST PRESIDENT in US history

[winston]

BCA Research: Crude prices – correction underway?

“Technical conditions paint a bearish picture for crude prices.

“Crude prices are up more than 100% over the past year and have become extremely overbought relative to most historical rate-of-change measures. In addition, market sentiment and open interest peaked some time ago (just as talk of $200/bbl oil became entrenched).

Similarly, the recent decoupling of oil prices with both Treasury yields and energy stocks suggest that crude prices have overshot relative to the global economic backdrop. Moreover, policymakers are attacking speculators and any efforts by the G8 to orchestrate a firm dollar would be bearish for crude, although US fundamentals still argue for a soft greenback.

“The primary source of near-term support for oil prices is geopolitical and low inventory levels, albeit the Saudis have promised to increase output. Bottom line: We remain underweight crude oil within the commodity complex and expect prices to continue to grind lower in the coming months. This will be a critical development for risky assets to regain strength.”

[kennynah]

mojo...(referring to your pictures)no laughing matter..... alterations of pictures.... we must never believe everything we see or hear, especially on polictics,,,,hidden agenda within...always...

[kennynah]

[iam802]

Oil price correction underway?

Article from DollarDex :

http://www.dollardex.com/sg/index.cfm?c ... entID=3493

--------------------------------
Crude oil prices are up more than 100% over the past year and have become extremely overbought relative to most historical rate-of-change measures, according to BCA Research. As shown below, market sentiment and open interest peaked some time ago -- just as talk of USD200 per barrel oil became orthodoxy -- pointing towards a technical decline in prices.



Similarly, the firm suggests "recent decoupling of oil prices with both Treasury yields and energy stocks suggest that crude prices have overshot relative to the global economic backdrop. Moreover, policymakers are attacking speculators and any efforts by the G8 to orchestrate a firm dollar would be bearish for crude".

Forces that are supporting oil prices include geopolitical concerns, low inventory levels, and lukewarm responses from the Saudis, who have promised to increase output only modestly.

In summary, it is likely that oil prices will trade lower in the coming months, although it is too early too say the oil bubble has burst. If oil prices do drop, equities should regain strength.

[kennynah]

thanks 802 for highlighting this article...

unless, my data on COT is wrong, or that I am reading it incorrectly.
otherwise, to me, the commercials (meaning the oil owners and their agents) are Net Long for the 1st time in a year... technically, this mean that they are actually buying (Long) rather than selling (hedging)...and you know what they say...the commercials know best...and a lot more knowedgeable about their oil commodity than even the largest speculative traders...

however, i note that whilst, in close scrutiny, the 2 charts might be saying the same thing, dollardex article you posted is suggesting a drop in Crude Oil price, while my interpretation is that it will rise...

i wish to separately highlight the need to be critical when we view Open Interest. OI can be either Long or Short. When someone says, OI is rising, it is absolutely meaningless, bcos one doesnt say if it is LONG or SHORT.

therefore, the chart by dollardex is left open to interpretation, as to the rising OI. Are we so cock sure that the rise is attributed to LONG Open Interest?

Now, u may say, it is intuitive. Then, let me share here that it is NOT intuitive. The reason is obvious when one clearly understand what a Open Interests are....

Long Open Interest - unclosed off open positions, whether in futures or/and options, where the open positons are LONG, which is either a LONG futures, or a LONG CALL option, or a SHORT PUT option positions or any combinations of these.

Short Open Interest - unclosed off open positions, whether in futures or/and options, where the open positons are SHORT, which is either a SHORT futures, or a LONG PUT option, or a SHORT CALL option positions or any combinations of these.

Therefore, even we one sees a rising Open Interest chart, it can be LONG or SHORT open interests....


Bottomline : I cannot properly interpret dollardex chart on OI..and so, it leaves to imagination...

i welcome your comments...