whats the odds will see $6.00 at the pumps on the water?
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Fed is meeting this week and rumors are that They will announce a .25% rate cut and also the most important thing that they will STOP lowering the fed interest rate for the time being.
That announcement alone will stabalize the US dollar and it will gain strength and gain on the Euro.
In turn, Oil will start to drop and it should drop rapidly.
This is the plan, lets hope the plan goes correct
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Also in commodities they all drop together. Gold has dropped over 100 points lately after skyrocketting prices. Oil will be next. Hedge funds will dump their shares for profit after fed gives them the bad news.
I know it sounds crazy and unbelievable, but I believe oil will start a decline from when the fed STOPS cutting interest rate and it could drop significantly; Of course a major hurricane or major oil stoppage in any country could change all that for the worse.
This post edited by algreek3 10:17 PM 04/27/2008
That announcement alone will stabalize the US dollar and it will gain strength and gain on the Euro.
In turn, Oil will start to drop and it should drop rapidly.
This is the plan, lets hope the plan goes correct
Also in commodities they all drop together. Gold has dropped over 100 points lately after skyrocketting prices. Oil will be next. Hedge funds will dump their shares for profit after fed gives them the bad news.
I know it sounds crazy and unbelievable, but I believe oil will start a decline from when the fed STOPS cutting interest rate and it could drop significantly; Of course a major hurricane or major oil stoppage in any country could change all that for the worse.
This post edited by algreek3 10:17 PM 04/27/2008
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Take a while
Sounds to good to be true
The higher prices will be here for a while for the price of oil takes a while to hit the streets.
.25% should bring it down a buck but if thats at the peak of almost 6 bucks on the water that mean 5 bucks will be the rate for the summer
Am I wrong or missing something
Sounds to good to be true
The higher prices will be here for a while for the price of oil takes a while to hit the streets.
.25% should bring it down a buck but if thats at the peak of almost 6 bucks on the water that mean 5 bucks will be the rate for the summer
Am I wrong or missing something
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togmaster wrote:
Sounds to good to be true
The higher prices will be here for a while for the price of oil takes a while to hit the streets.
.25% should bring it down a buck but if thats at the peak of almost 6 bucks on the water that mean 5 bucks will be the rate for the summer
Am I wrong or missing something
.25% drop in rate is BAD news...Every time the fed cuts the rate, it makes the dollar weaker and thus affects price of oil for the worse.
The fed will finally annouce that they will stop lowering rates for the first time in a long time. This news alone will help the dollar gain strength and the oil futures markets will react and oil will fall.
P.S. the plan is that the fed will announce that they will stop lowering rates; On Tuesday, if they dont hint at this or say it outright, good luck to all of us.
This post edited by algreek3 10:24 PM 04/27/2008
Sounds to good to be true
The higher prices will be here for a while for the price of oil takes a while to hit the streets.
.25% should bring it down a buck but if thats at the peak of almost 6 bucks on the water that mean 5 bucks will be the rate for the summer
Am I wrong or missing something
.25% drop in rate is BAD news...Every time the fed cuts the rate, it makes the dollar weaker and thus affects price of oil for the worse.
The fed will finally annouce that they will stop lowering rates for the first time in a long time. This news alone will help the dollar gain strength and the oil futures markets will react and oil will fall.
P.S. the plan is that the fed will announce that they will stop lowering rates; On Tuesday, if they dont hint at this or say it outright, good luck to all of us.
This post edited by algreek3 10:24 PM 04/27/2008
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Oil is affected by many things.
Right now though a major thing is the US dollar. We need the dollar to gain strentgh; When that happens, Oil will drop big time. Fed needs to stop giving money to banks and to stop lowering the friggin rates already. We need fed to hint that they will stop lowering the rates this Tuesday coming up.
Right now though a major thing is the US dollar. We need the dollar to gain strentgh; When that happens, Oil will drop big time. Fed needs to stop giving money to banks and to stop lowering the friggin rates already. We need fed to hint that they will stop lowering the rates this Tuesday coming up.
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How much lower could they go anyway?
Your right, a weak dollar is a major factor in the price of oil. Another drop in rates will make it weaker & oil more expensive. Yeah they might announce no more rate cuts but how much lower could they go anyway. My income from cash investments has dropped 40% already. OUCH!!!! Somethings gotta give sooner or later. I just hope it's not our standard of living.
Your right, a weak dollar is a major factor in the price of oil. Another drop in rates will make it weaker & oil more expensive. Yeah they might announce no more rate cuts but how much lower could they go anyway. My income from cash investments has dropped 40% already. OUCH!!!! Somethings gotta give sooner or later. I just hope it's not our standard of living.
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steamboat1 wrote:
Your right, a weak dollar is a major factor in the price of oil. Another drop in rates will make it weaker & oil more expensive. Yeah they might announce no more rate cuts but how much lower could they go anyway. My income from cash investments has dropped 40% already. OUCH!!!! Somethings gotta give sooner or later. I just hope it's not our standard of living.
It can go lower. Look @ Japan..Their interest rate went down below 1.00%.
Your right, a weak dollar is a major factor in the price of oil. Another drop in rates will make it weaker & oil more expensive. Yeah they might announce no more rate cuts but how much lower could they go anyway. My income from cash investments has dropped 40% already. OUCH!!!! Somethings gotta give sooner or later. I just hope it's not our standard of living.
It can go lower. Look @ Japan..Their interest rate went down below 1.00%.
Algreek brings up some valid points. With oil traded in dollars, our weaker currency enables the global market to buy at lower prices. .(relatively speaking). Thus, the increased global demand. True, An additional rate cut(if we get one) may be perceived as an initial negative, it will be the fed rhetoric going forward that will dictate the strength or weakness in the dollar. There is still a liquidity/credit crisis which will prevent the fed from raising rates for quite some time. I almost wish they would just give us our medicine now.......raise rates to strengthen the dollar, we will all feel some pain, but at least it would give the markets an opportunity to correct themselves. Who knows....all i know is that i'm looking forward to getting out on the water. If gas prices get ridiculously high, i'll be hitting the surf! 
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CNN this morning, energy analyst said $118/bbl is the correct price for oil with the supply equaling the world demand. That and the switch to summer gas blends will keep gas where it is or higher. Strikes in England and Nigeria that shut oil pipes plus bombings in Nigeria, the weak dollar and the lack of refining capacity are all bad news
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algreek3 wrote:
Oil is affected by many things.
Right now though a major thing is the US dollar. We need the dollar to gain strentgh; When that happens, Oil will drop big time.
Your analysis fails to account for one major factor in the equation;
DEMAND which is growing daily,
and supply which for the next 18 months will remain static.
Stick with the weather,
you got a better shot of being right.
-----------
$6 a gallon at the pumps on the water is guaranteed in 2009.
Here is another HJ prediction,
if a Bush clone gets elected next,
within 4 years oil will move from the Dollar to the Euro.
Oil is affected by many things.
Right now though a major thing is the US dollar. We need the dollar to gain strentgh; When that happens, Oil will drop big time.
Your analysis fails to account for one major factor in the equation;
DEMAND which is growing daily,
and supply which for the next 18 months will remain static.
Stick with the weather,
you got a better shot of being right.
-----------
$6 a gallon at the pumps on the water is guaranteed in 2009.
Here is another HJ prediction,
if a Bush clone gets elected next,
within 4 years oil will move from the Dollar to the Euro.
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Jack, or whoever wants to take a stab at it-
What would Hillary or Obama do different that would bring fuel prices down?
I ask this not in a sarcastic way, or to start a debate, I genuinely don't know. The astronomical cost of fuel is a mystery to a mere mortal like me.
What would Hillary or Obama do different that would bring fuel prices down?
I ask this not in a sarcastic way, or to start a debate, I genuinely don't know. The astronomical cost of fuel is a mystery to a mere mortal like me
.
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JC30967 wrote:
What would Hillary or Obama do different that would bring fuel prices down?
Didn't mean to suggest that a Democrat will bring fuel prices down compared to a Republican.
In reality, neither can do anything about oil/fuel prices short of using subsidies to reduce the price.
If they do that, you won't pay at the pump, but on April 15 instead.
My comments about the switch to the Euro and Bush clone was meant that it could be done to economically hurt the US.
We took Russia out with money not muscle,
don't think the world didn't notice.
What would Hillary or Obama do different that would bring fuel prices down?
Didn't mean to suggest that a Democrat will bring fuel prices down compared to a Republican.
In reality, neither can do anything about oil/fuel prices short of using subsidies to reduce the price.
If they do that, you won't pay at the pump, but on April 15 instead.
My comments about the switch to the Euro and Bush clone was meant that it could be done to economically hurt the US.
We took Russia out with money not muscle,
don't think the world didn't notice.
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If the dollar gains strength, OIL will drop.
Only reason why it hasnt dropped today, in speculation is because of dispruptions in Nigeria.
If the Fed announces that they will stop cutting the rate, Dollar should start gaining strength, thus oil should drop. If Fed hints at a stoppage and then a raise in rates, oil will drop faster.
Of course demand is a factor. But the price of the US dollar right now is affecting the price of oil big time. Some analysts estimate its affecting by as much as $40-$50 a barrel.
Only reason why it hasnt dropped today, in speculation is because of dispruptions in Nigeria.
If the Fed announces that they will stop cutting the rate, Dollar should start gaining strength, thus oil should drop. If Fed hints at a stoppage and then a raise in rates, oil will drop faster.
Of course demand is a factor. But the price of the US dollar right now is affecting the price of oil big time. Some analysts estimate its affecting by as much as $40-$50 a barrel.
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Fuel prices will remain at these rates of climb higher in the upcoming years, barring some amazing new discoveries in accessible oil deposits or oil recovery technology. The entire world has become industrialized and energy hungry. China and India are no longer the subsistence agriculture nations they were 40 years ago....they are the next economic superpowers, and they demand energy to continue growth. There may be some slight declines in price, but overall, the price of fuel will increase.
Algreek, demands is the overwhelming factor in oil prices...not the value of the dollar. It has an affect, but only a marginal one compared to the big picture of supply and demand.
As for McCain, its his foreign policy measures which would likely cause oil to shift from the dollar based to euro based system. The world does not look fondly upon us or our foreign policy, and as such the change would be aimed as an economic blow.
What should we do. The future folks is in the efficient utilization of resources, ranging from plastics, to metals, to energy needs. This country needs to become the world leader in these technologies, that way we will stay one step ahead of China.
This post edited by GradySailfish 02:33 PM 04/28/2008
Algreek, demands is the overwhelming factor in oil prices...not the value of the dollar. It has an affect, but only a marginal one compared to the big picture of supply and demand.
As for McCain, its his foreign policy measures which would likely cause oil to shift from the dollar based to euro based system. The world does not look fondly upon us or our foreign policy, and as such the change would be aimed as an economic blow.
What should we do. The future folks is in the efficient utilization of resources, ranging from plastics, to metals, to energy needs. This country needs to become the world leader in these technologies, that way we will stay one step ahead of China.
This post edited by GradySailfish 02:33 PM 04/28/2008
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algreek3 wrote:
1. If the dollar gains strength, OIL will drop.
2. Of course demand is a factor. But the price of the US dollar right now is affecting the price of oil big time. Some analysts estimate its affecting by as much as $40-$50 a barrel.
1. True to some extent, but we are headed into the high demand season,
so any gains from a stronger dollar will be lost to the increased demand and resulting price.
2. Don't listen to those analysts, they are the Al Rokers of Wall street Dollar has 10-15% to gain max, thats worth about $20 on a barrel or about 50 cents on a gallon reduction.
1. If the dollar gains strength, OIL will drop.
2. Of course demand is a factor. But the price of the US dollar right now is affecting the price of oil big time. Some analysts estimate its affecting by as much as $40-$50 a barrel.
1. True to some extent, but we are headed into the high demand season,
so any gains from a stronger dollar will be lost to the increased demand and resulting price.
2. Don't listen to those analysts, they are the Al Rokers of Wall street
Dollar has 10-15% to gain max, thats worth about $20 on a barrel or about 50 cents on a gallon reduction.
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I am talking about short term (next 2-3 years).
Demand will keep oil high for the future, but short term, dollar needs to gain strength.
Car companies are experimenting with cars that can do 100mpg...
Things like that will need to keep happening to bring down demand.
By 2012, all cars, suv's and pickups have to be 30mpg, by law.
Demand will keep oil high for the future, but short term, dollar needs to gain strength.
Car companies are experimenting with cars that can do 100mpg...
Things like that will need to keep happening to bring down demand.
By 2012, all cars, suv's and pickups have to be 30mpg, by law.
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