View Full Version : Oil spikes $25 a barrel on anxiety over US bailout

22nd Sep 2008, 20:04
The Associated Press: Oil spikes $25 a barrel on anxiety over US bailout (http://ap.google.com/article/ALeqM5i5TtajgUpSm7KY5jf-lCJGHBB-tAD93BUF080)

NEW YORK (AP) Oil prices spiked more than $25 a barrel Monday the biggest one-day price jump ever as anxiety over the government's $700 billion bailout plan battered the dollar and touched off frenzied buying of safe-haven investments including crude:{

22nd Sep 2008, 20:29
The rise has dropped to $18.00 from $25.00 as of 5 minutes ago. Still too much.

22nd Sep 2008, 21:19
got to get the christmas bonus from somewhere ,as short selling now outlawed....

22nd Sep 2008, 21:56
As long as there are idiots paying 120+ per barrel there will be bloody Russians ,Arabs and Chavez to sell it. :{

el #
22nd Sep 2008, 21:59
SINGAPURCANAC, but there is no other choice than to buy when you're supposed to use it. Oil is not Gold.
And, I'm not sure that the shorting limitation applies to commodities.

22nd Sep 2008, 22:37
@el #,
you are almost right,except the fact that alternative source of energies are well known,theoretical and practical issues are solved,except oil lobby.
I may write about this issue at least 100 pages but have you ever noticed green energy
story at hot termin on CNN?
Answer is NO!

el #
22nd Sep 2008, 23:04
Hope the oil bullish will be punished by a decline in price due to the recession and people opening their eyes after all.

I see no wrong in speculating on any instrument but non-renewable energy and food.

On the other hand whoever sells oils has now understood that the world would buy large quantities at any virtually any price.

An the world does nothing to prevent those who have money already, to make further speculating and someway manipulating the price.

Not sure how sustainable is the above.

galaxy flyer
22nd Sep 2008, 23:08
A large international bet on the "bailout" causing huge inflation. This bailout will cost the US and the World dearly--for nothing.


22nd Sep 2008, 23:18
You think perhaps one should start hoarding Zimbabwe dollars??

I am afraid your summation is correct.

galaxy flyer
23rd Sep 2008, 00:30
Not that bad yet, unless OPEC and the other oil producers start pricing oil in Zim dollars. :eek:


23rd Sep 2008, 01:43
The "Bailout" will have been thoroughly muddled, micromanaged, and eviscerated before anything firm is set. Whatever the advertising, the original plan does not have the chances of the proverbial snowball.

Any oil priced over $100/bbl will lead to direct and permanent demand reduction.
The in-group like to call it Demand Destruction". Eventually this threshold will go down into the 80's or lower.

One looks forward to a very challenging and difficult 12 months ahead. And probably also the ten years following.

23rd Sep 2008, 06:01
It's fallen by a further $11 in Asia in the last few hours.

Metro man
23rd Sep 2008, 10:14
Don't worry too much if you're outside the USA. Once the recession there really bites, demand and therefore price will collapse.

Track Coastal
23rd Sep 2008, 12:06
The tangled web...

In one memorable scene in July, Paulson - trying to justify his request for the authority to use taxpayer funds to backstop the mortgage finance companies Fannie Mae and Freddie Mac - advised Congress that "if you have a bazooka in your pocket and people know it, you probably won't have to use it."

Two months later, alas, the debt markets were in disarray again, prompting Paulson to drop the military imagery and take the companies into government conservatorship.

It will be days or weeks before the mortgage legislation wends its way through Congress, meaning that a final verdict on the project is still a ways off. In the meantime, Steil believes there is one surefire bull market: in lobbying Congress over the final shape of the bailout legislation.
"The amount to be spent in lobbying will be huge," he says. "It's difficult to see where this all ends."

Paulson plan fails to calm Dems, markets - Sep. 23, 2008 (http://money.cnn.com/2008/09/23/news/paulson_blank.fortune/index.htm?postversion=2008092306)

30th Sep 2008, 01:12
Oil prices down . . .