Oil Spill

The entire Middle East is war waiting to happen. The Russians have a battle group heading to a permanent port in Syria. One aircraft carrier, a huge missle cruiser, 4 subs full of nukes and a flotilla of smaller boats. The USA has 5 such battle groups (with nukes) in the gulf area. Israel wants to bomb the iranian nuke mfg bunkers. The rest of OPEC is buying arms as fast as possible. Iran and Hezbolla are loading up with HUGE numbers (150k) of short range missles and possibly a few black market tacticle nukes. Iran wants to wait to attack Israel when they have the large Strategic nukes they are building finnished, but Irael may attack before that time. Russia wants to have a role in the Middle East, so they may try to protect Iran from the Israeli attack and the USA will try to protect Israel... IF ANYTHING happens there, OIL will SKYROCKET...........

I agree the prices have a little to do with China but its just another excuse the oil companies are trying to give for their current prices. Barrel price will fall below $100 but what you pay at the pump will not reflect these changes. I have been watching gas prices and barrel prices for some time and guess what, price per gallon went up in this neck of the woods even though barrel prices have fallen. Gas went up 6 cents a gallon today after oil dropped $6 a barrel yesterday. You want prices to go down then the gov needs to do their job and start shutting down the big gas companies that have been gouging the consumers. I won't use names but how is it some gas stations have for 6 plus months charged 15 to 20 cents more per gallon than the one next door with the end result the stations next door decides we should be making and extra 10 to 15 cents too. Big cities where competition is abundant might not be experiencing the 5 to 10% difference but look at small town America and we are being raped. The speculators gave the greedy oil companies the ability with no fear of the Gov they bought and paid for to continue to make record profits. I have no data at what their record profit will be this year but it will top 150 Billion mark from last year no doubt.

The CFTC, which learned about the nature of Vitol's activities only after making an unusual request for data from the firm, now reports that financial firms speculating for their clients or for themselves account for about 81 percent of the oil contracts on NYMEX, a far bigger share than had previously been stated by the agency. That figure may rise in coming weeks as the CFTC checks the status of other big traders.

Americans supporting Mac McCain Doing that fact you have informant's On your Democrats party would like to know That Caspian sea is being over bleed from republicans America siphoning with long swinging drop to the Black sea on a five time length succession power over accelerating pull on oil so fast that Caspian sea suppliers can not keep up with the rate on amount of flow as it is being bleed straight out of the boar and this is why BP cut the speed of supply flow back to half (2thirds??)on start last week so not to be detected as Caspian sea oil started from back on the soviet union and right fully belongs to Russia So this oil has not been registered properly from the world oil company OPEC as this is a fact the OPEC union is supporting Russia in this responsible reaction by Russia only been detected from oil being raised to $150 a burial as the oil went up the supply showed to being at a steady rate from America usage on Gas company out put coming from Black sea BP Pierrette's supported by USA

It is now evident that speculators in the energy futures markets play a much larger role than previously thought, and it is now even harder to accept the agency's laughable assertion that excessive speculation has not contributed to rising energy prices," said Rep. John D. Dingell (D-Mich.). He added that it was "difficult to comprehend how the CFTC would allow a trader" to acquire such a large oil inventory "and not scrutinize this position any sooner."

RE: Stuart Varney's Analysis The increased demand in China was probably due to the pre-Olympic buildup and the Earthquake. However, the current decrease in demand may be due to the fact that China has shutdown manufacturing and curtailed autos in Bejing for the Olympics. Will that demand rise again as soon as the Olympics are over and the plants go back online and cars are allowed in Bejing again? Will demand in the US go up as all the school buses start rolling again?

This oil commodity thing can't until the Fed is more interested in fighting inflation than he is in supporting the banks with low rates. Fisher mentioned today that he was concerned about the publics confidence in the Fed to fight inflation. Well, this main streeter thinks the Fed is between a rock and a hard place, since the banks are the nation's nerve center according to my banker bother,- seems an appropiate description. So yes, this main streeter thinks that there can't be any confidence in the Fed for fighting inflation or else they would release "nerve agent" poisoning on the banks with higher rates. Then there is the ethanol mandates that Democrats and Republicans like Thune refuse to address because they baught shares in Pickens alternative energy companies or are part of the Big Corn lobbyists- but thats for another blog entry. . . .

Hm....I love cheaper oil but my oil stocks hate it. I think $100 oil is possible but only for a short time of a few weeks or a few months. If I was you, I wouldn't waste my time writing about $100 oil because sooner than later it will be a lot higher than that.

Geedom get a life. Pointless comments don't get u anywhere. All it takes now is for congress to go along with the President and that would really freak out the speculators. Lsft wingers are loosing the arguements on all fronts and reality crashes in on them. Did I mention the DNC elists have limo shortage issues in Denver? I think it's time to have Big Bird to lecture the left on how markets really work.

Cheryl, You didn't mention the oil futures manipulation by Amsterdam traders. They tried to bump the market 23 times and succeded 5 times. Also' there were other manipulations USA traders also..... The oil bubble had it's roots in supply and demand, but the speed and severity was driven by the shere magnitude of the money chasing a profit in oil futures. This was a result of the real estate markets and stock markets sagging and commodities being the next place for rampant speculation to seek a profit.....

Is there a way to get actual, reliable supply and demand numbers for the global oil economy(rather than just speculate on bits and pieces of information)?

Under $100? I hope you don't have to grovel. Thanks Cheryl!

Didn't China reduce imports because of a mandate by the government (ex: taking 50% of the cars off the road) to reduce the smog in the cities that are hosting the olympics? When the cars, factories, etc. go back to normal after the olympics won't China's demand go back up?

No, No and No. Dollar is on the up, nothing to do with pensions/investors driving oil up. Dollar was on the down, oil spiralled. Your theory doesn't bring in gold, which happens to parallel oil here. This is- wake up sooner or later America, you now live in a global economy, like it or you can't leave it. Oil and gold have been reflecting the dollar, more than anything else.

CC: It’s great to have gasoline prices easing, but that should not be a sign for us to relax on developing other sources of energy. We need to push ahead with hydrogen, nuclear, solar, clean coal while drilling for new sources of natural gas and oil. We increase our dependence on foreign oil every day and we need to become at least 90% self-sufficient with regard to energy. There is a lot of work to do and we cannot wait.

Hey Cheryl, Its hard to believe we were almost at 150 a few weeks ago. Everytime you think that its heading back to around the 100 mark something in the world happens. Russia and china having a agenda and the Middle east being a powder keg! I think the days of a 100 dollars a barrel are gone. I hope I am wrong~Jeffery~

CC: It’s great to have gasoline prices easing, but that should not be a sign for us to relax on developing other sources of energy. We need to push ahead with hydrogen, nuclear, solar, clean coal while drilling for new sources of natural gas and oil. Nothing has changed. We remain dependent on foreign sources of oil and we need to become self-sufficient pronto.

Cheryl I've been following this commidity too for over two years. And during those two years I learned alot and I'm still learning. As for me in the other blogs here on Fox Business those of us in favor of offshore drilling have been winning our arguements. I've bellieve that offshore drilling will be a job generator. I can tell you this commdity market is interesting. Now the OIL BUBBLE bursting is quite interesting. Over the weekend when the Russians invaded thier former client state of Goergia and I heard about Migs striking close to the pipeline,first thing I thought the oil barrel price is going shoot up at Monday's bell. To my surprise,I'm glad I was wrong yesterday, that the oil barrel price didn't move up. So I figured other factors must be at work to pull the price down. Investors and specualators pulling money out and moving into other markets. I still listen to Eric Bolling and learn more about this commdity. With price falling u have me as ally here. No jive. I can tell you the cheapest price gas now in Warren Coutny,Mississippi is 3.65 at the local Pilot station and locals were filling up thier vehicles. In Brookhaven the price of gas is 3.35. Personally I'm waiting to see the fallout from the Oil Commidities investigation to see whose involved etc. By the way you New Yorkers desreve cheaper gas below 4.00. How does a 1.89 souond? I know I'm just dreaming. But no consumer doesn't deserved to hose by anyone over the price of energy and that's something we all depend on. Now did I make u smile?:)

CC: It is very nice to have gasoline prices easing, but that should not be a sign for us to relax on developing other sources of energy. We need to push ahead with hydrogen, nuclear, solar, clean coal while drilling for new sources of natural gas and oil. Nothing has changed. We remain dependent on foreign sources of oil and we need to become self-sufficient pronto.

Another beautifully written article Cheryl! You see, prior to the Olympics, China was hoarding record levels of diesel fuel to run their backup generator system during the Olympics in case their grid system failed - which is a daily occurance over there. These record level imports to China caused global prices for diesel to spike essentially killing the trucking industry. With world demand for crude slowing a bit, all we need now is for Berneke to wake up and start raising interest rates to help combat inflation and strenghten the dollar. That should help put downward pressure on the price of crude.

As Cavuto brought attention to, my eyes are on Georgia. I've got this eerie feeling that this could be the beginning of a much larger major global conflict that we can ill afford (quite literally). I'd also like put some emphasis on the fact that we have negative real interest rates. The Ibanks tapping the discount window at will can literally profit from borrowing money right now. When that money finds its way into the real economy (monetary inflation tends to trail behind a couple years ie: housing bubble formation after Greenspan cut rates to ease the NASDAQ recession), look out. I think that money will go straight to commodities, sparking the real bull run, and perhaps even a mania (at which point, the government might start siezing/nationalizing gold, silver, farmland, food, and who knows what else). So needless to say, as oil continues to correct, I'm buying for the long term. But the trade is definetly short oil into the election. Longs can hedge their positions accordingly for the correction. Good luck and God bless.