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Oil dips under $50 on fears of deep recession
By PABLO GORONDI
Associated Press
Oil prices plunged over $3 Thursday, briefly dipping below $50 a barrel as 16-year high U.S. unemployment figures and plummeting stock markets caused investors to price in lower crude demand.
Light, sweet crude for December delivery was down $3.25 to $50.37 a barrel in electronic trading on the New York Mercantile Exchange by early afternoon in Europe.
Crude briefly dipped below $50 for the first time since Jan. 18, 2007 when prices struck $49.91, just a penny above the 2007 low.
On Wednesday, the contract fell 77 cents to settle at $53.62.
In London, January Brent crude fell $2.89 to $48.83…
20Nov2008 | INO | Comments Off | ContinuedSaudi Arabia Hesitant to Join OPEC in Production Cut
Despite earlier pledges to hold oil output steady, the Organization of Petroleum Exporting Countries (OPEC) yesterday (Wednesday) announced that it would cut production by 520,000 barrels per day in an effort to “strictly comply” with the production quotas set last September. However, Saudi Arabia, the cartel’s largest and most influential member has indicated otherwise.
The cartel, which controls 40% of the world’s oil exports, pointed to such factors as tumbling demand, greater supply, the dollar’s recent rally and an easing of political tensions – all of which have contributed to a 30% drop in oil prices over the past nine weeks.
“All…
11Sep2008 | Money Morning | Comments Off | ContinuedContrarian Takeaway: Prices in the “Out-Months,” the Candlesticks, and the Indicators Suggest a Screeching Halt to the Rise in Crude Oil Prices
Since March 17, Gold has declined nearly 13%. So much for the “inflation hedge” hypothesis. Whatever happened to the “inevitability of $2,000 Gold because the fundamentals require it?” Proponents are noticeably quiet these days. Is Crude Oil headed for $200 per barrel? Maybe so; but maybe not quite yet.
As in the case of Gold, there is no shortage of fundamental reasons why the price of Crude Oil must increase. What do those who are “on the inside,” doing the actual trading with real money, think about the future price of crude oil? Yesterday’s closing prices of the crude oil futures contracts…
11May2008 | William Kurtz | Comments Off | ContinuedMoney Morning Boosts Oil Target Price to $225 a Barrel, Thanks to Continued Scarcity, Burgeoning Demand in China
Money Morning Investment Director Keith Fitz-Gerald – one of the first global financial gurus to predict triple-digit oil prices – has boosted his target price for crude oil from $187 to $225.
The case for the target-price increase of 20% was very clear.
“The math is really simple here,” Fitz-Gerald said in an e-mail interview from China, where he was heading an investment-research tour. “We are burning through supplies at a rate that’s four times to five times faster than we’re discovering new reserves. Throw in a few [surprises] … perhaps a terrorist event …and add in the accelerating use of oil…
8May2008 | Money Morning | Comments Off | Continued
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