Oil prices retreat from record high

[Gunny]

Associated Press
updated 24 minutes ago

NEW YORK - Retail gas prices rose further above a national average of $4 Monday, as distributors and retailers hiked prices in response to Friday’s unprecedented rally in the oil futures market. Oil futures, meanwhile, retreated as investors sold to lock in profits from the run-up, though oil prices may be headed even higher.

At the pump, the national average price of a gallon of regular gas rose 1.8 cents overnight to a record $4.023, according to AAA and the Oil Price Information Service. Prices first moved above $4 nationally on Sunday, though they’ve been higher than that in many parts of the country for weeks.

more ... Oil prices retreat from record high - Oil & energy - MSNBC.com

 

[JimH52]

Good read Gunny. Thanks for posting!

 

[editec]

Gas is $4.10 a gallon on the coast of Maine

That's $0.16 more expensive than it was here last Friday.

 

[Paulie]

It retreated last week too, only to shoot back up to a close of $140 on Friday.

Let's not be giving much consideration to one-day moves.

When it makes its awaited correction down to somewhere around $100, then let's talk.

But then again, I'm one to believe it will only be shooting right back up from there ANYWAY, so what the hell.

 

[editec]

If any of us could accurately TIME the price fluxuations of the petroleum market would we have the time or inclination to post in places like this?

I'd be swmming on the olympic sized pool on my private yacht if I had that superpower.

 

[maneal]

The speculators and the smart investors know that the bubble will eventually burst. Maybe not right away, but eventually.

 

[Toro]

The speculators and the smart investors know that the bubble will eventually burst. Maybe not right away, but eventually.

Without a doubt.

 

[Annie]

Without a doubt.

Indeed. Even the Saudis are getting nervous.

 

[Zoomie1980]

It retreated last week too, only to shoot back up to a close of $140 on Friday.

Let's not be giving much consideration to one-day moves.

When it makes its awaited correction down to somewhere around $100, then let's talk.

But then again, I'm one to believe it will only be shooting right back up from there ANYWAY, so what the hell.

Oh, at some time it may get to $200 or even $300, but not for several years. In Oct 2007 we were producing 85.9 and consuming 84.9. That's the tightest it has ever been since the 1972 oil embargo by OPEC. The latest numbers I have for April show 86.8 produced a day vs 84.5 consumed. May estimates show consumption down another 500,000 a day. So right now we probably producing a 2million barrel a day SURPLUS. The last time we saw a 2M surplus was some time in 2004 when oil was in the 30's and 40s.....

 

[Zoomie1980]

Indeed. Even the Saudis are getting nervous.

When the numbers come out for June we will probably see a SURPLUS of about 2,000,000br a day. Anything over 55-60 is RIDICULOUS and based on pure speculation. I seriously doubt will see an actual SHORTAGE any time in the 5-7 years and probably not for 10 or more years, no matter what the political situation or what hurricanes do. That's even assuming demand for oil rises, which it may not as the world move to alternative sources en-masse....

What that means is that the Speculative bubble in oil will burst, and burst soon. And it will make the housing bubble seem like a single champaign bubble