Oil Futures Drop to $56 / Barrel – Gasoline $1.32 Gallon / Global Stocks Down

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“The oil market is coming down into line with demand expectations,” said Simon Wardell, oil analyst at Global Insight in London.

“There’s more downside weakness here than upside strength. We are expecting prices to go lower before they go higher with U.S. crude hitting $50 before its reaches $65 again.”  

Oil has shed 60 percent of its value since hitting a record high $147 in July.  http://news.yahoo.com/s/ap/20081110/ap_on_bi_ge/oil_prices_11

The run up in Oil during the 6 months that preceeded the election had little to do with demand and consumption. Oil demand and supplies had only incresed slightly prior to the run up. Oil producing countries had “excess” capacity prior to the run up. (They had the ability to pump more oil as demand rose).

Opec sets oil production levels to obtain a predictable price range.

OPEC President Chakib Khelil said the oil producers’ target prices for was $70 to $90 per barrel. http://economie.moldova.org/stiri/eng/163913/  

A significant factor in the post election run up of crude oil prices was financial speculation.

“We still have this connection between the oil market, the equity markets and the currency markets,” Ritterbusch said. Crude is bought and sold in dollars, and when the dollar falls against foreign currencies, investors often sell the U.S. currency and buy oil. Oil prices are also experiencing some spillover from the equity markets, in which any significant rise “conjures up images of a softer economic landing,” Ritterbusch said.  http://news.yahoo.com/s/ap/20081110/ap_on_bi_ge/oil_prices_11

Oil prices have fallen about 56 percent since reaching a record $147.27 in mid-July, and that’s provided some good news for U.S. motorists. In Tulsa, Okla., at least one station was selling regular gasoline for $1.79 and there were a handful of states where the average price of gasoline fell below $2.



Obama Prepares to Move Country Even Further Left – Oil Exploration At Risk

When Asked During The Presidential Campaign Obama Denied That He Would Take Either of These Actions …… 

Obama reviews Bush orders on stem cells, drilling

By STEPHEN OHLEMACHER, Associated Press Writer

WASHINGTON – President-elect Obama‘s transition chief said Sunday the incoming administration is looking to reverse President Bush‘s executive orders on stem cell research, oil and gas drilling and other matters.

John Podesta said the president can use such orders to move quickly without waiting for Congress to act, highlighting the extraordinary powers a president can wield beyond signing legislation approved by Congress. Podesta said people should expect Obama to use those powers to reverse many policies of the Bush administration.

“I think across the board, on stem cell research, on a number of areas, you see the Bush administration even today moving aggressively to do things that I think are probably not in the interest of the country,” Podesta said in a broadcast interview.

“There’s a lot that the president can do using his executive authority without waiting for congressional action, and I think we’ll see the president do that,” Podesta said.

Also, the federal Bureau of Land Management is opening about 360,000 acres of public land in Utah to oil and gas drilling, leading to protests from environmentalists …… Podesta said. “I think that’s a mistake.”

So much for Obama’s Campaign pledge to support additional drilling –

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