Oil & Gas 01 (May 08 - Jul 08)

[LenaHuat]

G'Evening K and MM

Ya lor. I don't see this oil game blowing over soon.
Too many parties are in cahoots - the US investment banks, the oh-not-at-all-transparent SWFs like the Saudis/Chinese/Russians, the large institutional pension funds like Caplers/Harvard........and the hedge funds

2nite's trading would be terrific.

[kennynah]

16 Jun 2008 13:19 GMT
Crude futures hit all-time highs, as weak NY-area data hits US dollar
NEW YORK (Thomson Financial) - Crude oil futures shot up to fresh all-time highs, as a weaker-than-expected reading on New York-area manufacturing activity put downside pressure on the U.S. dollar.

July crude futures were last up $3.53 at $138.67 a barrel, paring earlier gains of as much as $5.03, or 3.7%, to an all-time high of $139.89.

The U.S. dollar index fell 0.7% to 73.595, pulling back from a 3 1/2-month high of 74.314 hit in intraday trading on Friday.

Earlier, the New York Federal Reserve Bank said its Empire State Manufacturing Index fell 5 points to -8.68, the 4th negative reading in 5 months and below the median estimate of economists surveyed by IFR Markets of -0.5., amid weakness in the indexes for new orders, shipments and unfilled orders.

The weak data also pressured the equity markets and gave a lift to the bond market. S&P 500 futures were down 6.70 points at 1,353.00 and the yield on the 10-year Treasury note was down 5.9 basis points at 73.555%

[iam802]

Yesterday, oil hit above US$139 and retreat to US$134

Now, the price is US$133.

Increasingly, we are seeing a huge gap within oil prices traded on the same day.

To my knowledge, there has never been such a wide gap in oil prices within the same day.

Proceed with care (or maybe we are just waiting for this nonsense to stop)

[HengHeng]

hmm another big movement day today ? LOL .. well i'm thinking since output is increasing , assuming if demand is dwelling due to higher oil prices would it mean a lower oil price?

If so , my suggestion to those who have intention to short to look into options rather that shorting out especially with newbies new into the trade. So sometimes newbies would be absorb into looking at the price movements and forget to exit their trades thus resulting in a pretty big loss.

[kennynah]

in case, Oil is not available on trading platform, the proxies can be USO and XLE, which also offer options on these underlying. then again, options are not necessarily an easy instrument for novices, although Puts are limited in losses as compared to naked shorts.

[HengHeng]

Well true but one really need to know what he is doing when doing oil. Coz he really can get burned badly assuming if he is not careful. Oil trading is not for newbies.

[millionairemind]

China Should Raise Fuel Prices by 50%, Investment Bank Says

By Wang Ying

June 17 (Bloomberg) -- China, the world's biggest energy consumer after the U.S., should raise fuel prices by 50 percent to improve energy efficiency and reduce inflationary pressure, China's largest investment bank says.

The nation needs to increase oil-product prices as rising subsidies pose ``considerable risks'' to fiscal sustainability, China International Capital Corp. economists including Ha Jiming and Gao Ting wrote in a report yesterday.

China controls fuel prices to limit their effect on inflation in the world's most-populous nation, reducing refiners' ability to pass on higher oil costs. Its biggest oil refiner China Petroleum & Chemical Corp. was paid about 7 billion yuan ($1 billion) in state subsidies for oil imports in April to compensate for selling fuels at below cost.

The level of international oil prices depends ``to a significant degree'' on China's energy pricing policy, as China accounts for about 40 percent of the increase in global consumption, the bank said.

``Our simulation results show that the Chinese economy will remain overheated and inflation will likely accelerate to 8.7 percent in 2009 in the absence of energy price reforms, but inflation could be reduced to 7.3 percent if fuel prices are raised by 50 percent at mid-2008 to bring them in line with international levels,'' it said.

China may continue its controls on energy prices ``in the short run'' because the cost is still ``affordable'' and the government is concerned that accelerating consumer prices may affect social stability before the Olympic Games, it added.

[kennynah]

perhaps, the above article is the reason why Oil is tumbling another $1.50 at this time.... dunno for sure...

[kennynah]

this was the excuse for oil to rise >$5 initially yesterday..
*************************
17 Jun 2008 10:00 GMT
StatoilHydro: No Estimate For Restart Of Oseberg Oil Output

LONDON -(Dow Jones)- Oslo-based StatoilHydro ASA (STO) said Tuesday it still could not provide an estimate for when 150,000 barrels a day of oil production from its Oseberg fields would resume after a fire Sunday. Output will restart when damage to the Oseberg A facilities is repaired, it added.

"Oseberg A platform repairs are ongoing," spokesman Gisle Johanson said Tuesday. Output from the associated Tune, Oseberg South and Oseberg East fields, which use the Oseberg field center for both processing and transport, is still shut down, StatoilHydro said in a statement Monday.

Oil production from the Brage and Veslefrikk platforms was restarted Monday.

[blid2def]

Kuwait Says Oil Over $100 Is Too High; Support Saudis (Update1)

Full article: http://www.bloomberg.com/apps/news?pid= ... refer=home

Kuwait Says Oil Over $100 Is Too High; Support Saudis (Update1)

By Ladane Nasseri and Matthew Brown

June 17 (Bloomberg) -- Kuwait followed Saudi Arabia in saying crude oil prices are too high as evidence mounts that energy costs are restraining growth and accelerating inflation.

``I think it's high,'' Kuwait Finance Minister Mustafa Al- Shimali said in an interview in Isfahan, Iran, today. A reasonable oil price would be ``more or less $100,'' he said.

Crude oil for July delivery fell 50 cents to $134.11 a barrel on the New York Mercantile Exchange at 10:59 a.m., after touching a record $139.89 yesterday.