Will crude prices fall below $90?

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    • Will crude prices fall below $90?

      Oil touched as low as $107.22, more than $40 off its record high of $147.27 set on July 11.

      The dollar rose to its highest level since February against the euro on speculation oil prices near a four-month low will support economic growth in the U.S., the world's largest energy consumer.

      We are waiting for the oil to fall below $90 first and wish to fall below $60 for stabilising many economies. :D

    • OPEC thinks $100 is a fair price

      Guardian UK reported the following

      " Leading members of Opec, the Organisation of Petroleum Exporting Countries, want to reduce oil supplies to keep the price high.The 13 members of the cartel meet in Vienna next week and Iran and Venezuela have made their position clear. "Oil supply must be well proportioned with demand, and control over Opec's excess oil supply is an issue that must be discussed," said Gholam Hossein Nozari, Iran's oil minister, this week. Translation: he doesn't want to see the price fall below $100."

      Will the Oil prices continue to fall ($90, $60....) or will OPEC be successful in stabilising the oil prices at $100 ?

    • OPEC has something to say about that....

      The OPEC has succeeded in its attempt to keep the Oil prices above $100 by reducing the oil output. A statement released after the OPEC meeting states that the OPEC OIl ministers have decided to trim the overall output by more than 500,000 barrels a day, and the current output is fixed at 28.8 million barrels a day.

      Oil prices had lost more ground Tuesday ahead of the OPEC decision, falling $3.08 to settle at $103.26 on the Nymex, the lowest settlement price since April 1. But after OPEC released its statement, Light, sweet crude for October delivery rose $1.00 to $104.26 a barrel in the New Yourk Mercentile Exchange.

    • Who is playing now?

      I had said on the 7th of September that the falling oil prices will make some organisation very unhappy. No great prophecy from me. We all know it. Now it has happened. OPEC has cut supply.

      Now, please refresh me... Some months ago, was it not some guy from one of the OPEC countries who said that the oil prices were rising only because of speculation? Of course, it is due to speculation. That is half the story. Now we know that speculation kicked aside, there are other major factors. :thumbdown:

    • Tumbling Oil prices

      Oil prices have slid to a 7- month low. Bloomberg reports "Crude oil for October delivery fell as much as $4.17, or 4.4 percent, to $91.54 a barrel, the lowest intraday price since Feb. 11."

      The main cause for this slide seems to be the bankruptcy protection sought by the Lehman Brothers Holdings Inc, once the fourth largest investment bank in America. The fear is that the current credit crisis will affect the economy and cut the demand for oil.

      Analysts say that the Oil prices may continue to fall before they are stabilised. Will OPEC make good its threat to cut the Oil output, now that the Oil prices are below $100 or will the prices plunging below $90 be the relief that the consumers are waiting for. ?(

    • Oil prices over $103

      Now the oil prices have gone over $103 very fast.

      The US financial aid has rocketed the stock market.
      Will people will travelling again?
      Will the consumption rise?
      Will the OIL PRICES go over $120 again?

      Inevitable you say? Let us watch the next few days/weeks.....

    • Whoa... was that a $25 hike ?

      Light, sweet crude for October delivery jumped as much as $25.45 to $130 a barrel on the New York Mercantile Exchange before falling back somewhat to trade at $123.77. Just a week back, Oil prices had reached a 7 month low of $91 a barrel, having previously seen an all time high of $147 a barrel in July.

      The $25, highest one-day price jump ever, was mainly due to investors seeking a safe place to invest their money which was threatened by a $700 billion bailout plan to stabilise America's financial crisis. Investments also drove down the value of the dollar against other currencies, and as oil trading is done in dollars, a decrease in the dollar lead to frenzied oil buying, which in turn jacked up the oil prices.

      Another reason for Monday's price hike seems to be a phenomenon called Short Squeeze. Oil is traded in futures, i.e. the oil is bought for a specific price for a particular month in the future. The Oil contract for October expired on Monday, and hence the buyers, who were hoping for a decrease in the oil prices before the expiration date were forced to buy contracts which led to the price being pushed up even more.