Posts tagged ‘Oil Price’

Oil Crude prices rebound above $50 U.S. dollars per barrel, but then declined again on Monday local time, because traders consider the possibility of a decrease in OPEC production this weekend and continued economic turmoil. In New York, light sweet crude oil for January delivery ended at 44.51 U.S. dollars per barrel, down 1.77 U.S. dollars from the closing price Friday. Original oil prices rebound to be 50.05 U.S. dollars per barrel, the highest level since 1 December.

In London, Brent crude North Sea for January delivery picked up to the highest level of 49.96 U.S. dollars per barrel, also the highest peak in the last two weeks, but back off a dogged 44.60 U.S. dollars per barrel, down 1.81 dollars U.S..

The State Oil Organization (OPEC) will be meeting Wednesday, in Oran, Algeria, and is estimated to trim production again to raise the price of oil down by the oppressive peak of global economic concerns.

OPEC Secretary General Abdalla Salem El-Badri said to the reporter right in Oran on Monday, that he will consider the possibility of “a very large decrease” in production of crude oil, adding that “the market the excess supply of oil.” “This morning they (the price) is based on the many announcements by OPEC that the production of a substantial reduction on Wednesday,” said Andy Lipow of Lipow Oil Associates.

“But honesty after that, people continue to see demand from the equation,” he said. “The demand and the economic situation throughout the world continue to push oil prices down.” Oil prices have fallen about two-thirds the number since the highest price reached a record above 147 U.S. dollars five months ago, because of recession in many countries.
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The price of crude oil plunged on Friday, local time, after a bailout plan for the automotive industry so that the U.S. failed to heighten concern about slowing down on demand due to the global financial crisis bites. As reported by AFP, light sweet crude oil for January delivery fell 1.70 U.S. dollars to be closed at 46.28 U.S. dollars per barrel on the New York Mercantile Exchange. In the Intercontinental Exchange, London, Brent crude North Sea for January delivery plunged 98 cents on a steady 46.41 U.S. dollars per barrel.

Oil price rebound has been more than 10 percent on Thursday, amid signals that OPEC and Russia will cooperate next week in the reduction of production to support the increase of oil prices plunged. “At first, the price of commodities including oil to rally, but then forced by crisis of confidence in the middle of the failure of the U.S. automotive bailout plan,” said analyst John Kilduff of MF Global.

A bailout plan by 14 billion U.S. dollars to save the U.S. automotive industry is sick, failed in the U.S. Senate on Thursday, increasing the prospect bankruptcy General Motors and Chrysler, which have millions of workers. The burden of this global stock market Friday, and press the switch commodity prices.
“Crude Oil to be the decrease in the stock market on Friday,” said Nimit wine, a broker Sucden Analyst Company. “Reluctance to take risks created the automotive industry bailout after the failure.”

The State Oil Organization (OPEC) is estimated to announce the cutting of production at a meeting next Wednesday in an effort to encourage the increase of prices that have fallen from new record high above 147 U.S. dollars in July. OPEC, which produces 40 percent crude oil world, has been called producer countries of non-OPEC oil to participate in reducing production to keep oil prices decline sharply. Russia on Thursday is ready to join with OPEC to keep crude oil prices fall and will become part of the oil cartel if Moscow became interested members. Russian non-OPEC members, but ranked equal with Saudi Arabia, de facto cartel leaders, as the world’s largest oil exporter.
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After made new record high $147 USD /barrel in July 2008, oil price has been declined more than 100 percent. Premium price is lowest in last 3 months in America after cut 53 cent. Oil price is predicted will go down below $40 USD/barrel as Global Financial Crisis result. Oil shipping contract in New York Mercantile Exchange show the opposite after run high after closed in $49.93 USD/barrel higher than before $48.25 USD/barrel.

In Asia, Oil price has no power also. January shipping for light sweet oil is closed at $48.47/barrel, or declined 95 cent yesterday afternoon in Singapore. Merchant claims and scare about Global recession because demand for energy is running low.

December Shipping, Oil price goes rise to level $49.62 after sit lowest price since 18 may 2005, $48.50 USD/barrel. As we know, Oil price declined to fantastic price after running record high (upper $100USD/barrel). United State Government has cut premium price to follow the lowering on oil crude price. Analysts then said to predict that Oil price contract shipping will go down below $40 USD/barrel.
Fantastic declining as resulted of Global crisis where demand from business (read Industry) declined in high percentage. To anticipate over supply (over supply has positive correlation to reduce oil price), OPEC might decide to cut their oil crude quota in near. Last month, OPEC had cut their supply with declined their quota to 1.5 million barrel/day. When OPEC start to cut their supply? Analysts predict OPEC will do it in December next month. So far, OPEC supplies 40 percent of total Global demand and to make OPEC as important rule in pricing manipulated.

OPEC tries to prevent the worst price
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After running high, Oil crude price now is lower than $80 per barrel. Amazing right! Why Oil crude price decline very significantly? Why? Congress had question to American Giant Oil Company about how much the real price for oil crude price, How much US to produce 1 barrel? And the answer was very surprising, lower than $50 required for one 1 barrel. So why the price is too high (upper $100 per barrel)? The answer is very simple, Broker, Investor and speculator make it. They have power to increase or decrease oil crude price based on economic indicator. (Middle East Politic Situation, America Financial Condition, Others Legal data from Biggest Countries-rich countries).

Americans are still down with their biggest problem; Credit Crunch-Mortgage Crisis and now after the very long time lag, they enjoy the bad impact. Many employers are fired, Lower Demand on Import, Credit Crisis, Many Home owners have lost and more.
Is this case has positive correlation with decrease on Oil Price? Yup! For every economic situation has impact to global economic. When Americans down with their crisis, Our Local TV said, Which countries then buy Chinese Product and which countries will buy our products (Indonesian Product)??
Crisis in America has multidimensional effect. European, Japanese, Chinese and development countries also get the impact, the big impact. Many Central Bank fight force to cut their interest rate to avoid the worst. Russian and Indonesia suspended their stock market to avoid naughty investor and broker to do illegal transaction or to make it worst.

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Low against major currencies, conflict on middle east and worried about oil stock and disturbing oil supply in Nigeria have been pushing Oil price upper $138 per barrel on Tuesday. The current price closes to new record high made on last week. Markets are worrying with King Abdullah statement last Sunday that they will increase their barrel per day haven’t fulfill world stock. Actually Arabians have promised that his country produces more if available supply less than demand but so far the promise isn’t working.

Before that, King Abdullah claimed that running high on oil price is caused by traders and investors in market. King Abdullah said that they have increased their production and they did nothing when take profit taken investors still running.

Light sweet oil on august shipping rises from 1.30 to $138.04 level in New York Mercantile Exchange or close to evening trading season in European. On Sunday shipping, the contract risen $1.38 and closed at $136.74 per barrel. The increasing has been creating new record high on oil price last week, around $139.89 per barrel.

When oil price became uncontrolled, more than half of populations are suffered. Expansions to find new oil mine is hoped to increase our stock.Who behind the uncontrolled oil price?

Many people suggest that running high oil price is caused by declined Dollar against major currencies. To day, oil price makes its new record again around $133 USD per barrel. Main factors they said is declined on dollar against major currencies, announcement from USA government about their latest oil strategies stock, high demand in China on oil.

I know well about supply and demand and equilibrium. While supply is running low (demand is constant), new equilibrium is running higher than before. Oil isn’t others goods like TV, Cellular, Coffee and more. Oil is very sensitive goods. Because the supply is running low in future; and demand is still up because of populations grow significantly; we see, if external factors harm the equilibrium, oil price becomes uncontrolled. Read more »