Oil has breach the USD100 per barrel mark!!!

[Shull]

Breach under that is..first time in 6 mth trading close below 100 bucks..

 

Oil prices slide to six-month low of below US$98

Posted: 11 September 2008 2036 hrs

 

LONDON: Oil prices tumbled to six-month lows of below 98 US dollars a barrel on Thursday as the dollar rallied and demand for energy decreased around the world amid an economic slowdown, traders said.

 

Prices had risen earlier in the day as Hurricane Ike headed towards key energy facilities on the southern US coast and after OPEC on Wednesday reduced output to curb falling prices, analysts said.

 

Brent North Sea crude for delivery in October dropped to 97.85 US dollars a barrel on Thursday -- the lowest level since March 5. It later recovered to 98.22 US dollars, a loss of 75 cents from Wednesday's close.

 

New York's main contract, light sweet crude for October, slid 93 cents to 101.65 US dollars a barrel.

 

"Crude oil futures slipped further ... as the market focused on demand concerns and the strengthening dollar," said Sucden analyst Michael Davies.

 

A strong dollar makes goods, such as oil, priced in the US unit more expensive for foreign buyers, dampening demand. The euro on Thursday slid below 1.39 US dollars for the first time in a year on heightened concerns about a weak European economy, dealers said.

 

Concerns about oil demand in a slowing global economy were meanwhile highlighted by the latest monthly report from the International Energy Agency (IEA), which cut its estimate for global oil demand this year by 100,000 barrels per day and in 2009 by 140,000 bpd.

 

The IEA monthly report, published Wednesday, highlighted shrinking oil demand in North America, saying consumers mainly in the United States are cutting back energy use in response to high prices.

 

The same day, the US Department of Energy said that stockpiles of distillates, which include heating fuel, had dropped by 1.2 million barrels in the week ended September 5. The consensus forecast was for a bigger decline of 2.2 million barrels.

 

Distillates are being watched closely by the market ahead of the Northern Hemisphere winter.

 

With oil prices falling below 100 US dollars per barrel this week, oil producer group OPEC decided to cut production to prevent a further drop, despite an economic crisis in consumer countries.

 

"It looks like they are willing to defend 100 dollars (as a floor)," Mike Wittner, an analyst at Societe Generale, commented following OPEC's decision.

 

Oil prices topped a record 147 US dollars in July but have since fallen some 30 per cent, dropping below the symbolic 100-dollar mark for the first time in five months on Tuesday.

 

The Organization of Petroleum Exporting Countries reacted to the fall by cutting its daily output by 520,000 bpd.

 

Oil prices had risen in Asian trading on Thursday as Ike strengthened to a Category Two storm in the Gulf of Mexico and headed towards the southern US coast after ravaging Cuba and the Caribbean.

 

In anticipation of Ike, Anglo-Dutch oil giant Shell evacuated personnel from offshore installations. The bulk of US oil refineries are in the Gulf of Mexico.

 

Elsewhere, British Prime Minister Gordon Brown confirmed that he would host a summit of oil producer countries and consumers on December 19, warning that the world must move away from the "dictatorship of oil".

 

- AFP/ir

 

Source: http://www.channelnewsasia.com/stories/afp.../375251/1/.html

 

let's see whether the cartels will act blur onot..

[Nkps]

i am now more concern if PAK LAH will act blur or not

[Elfenstar]

Any idea if the SGD has strengthened or weakened against the USD since the price started dropping???

[Chrispie]

weakened.. now USD is back to 1.4++ region again.

 

It is precisely coz usd is strengthening that is causing the oil px to drop.

[Shull]

so nett price in SGD still the same..

 

LL..

[Shull]

Pak Lah act blur will affect you meh?

 

tot you go the CNG way liao..oil =/= CNG wor..

[Patcheon]

Ok, I don't beat around the bushes and write what I observed straight.

When the time crude oil is rising, SDG also rising, but they act blur to the strengtening SGD and don't give a damn, pump prices still shooting up faster than a rocket. When crude oil is falling, they say SGD weakened, they act blur and dun give a damn to the falling crude oil prices, drag and drag to lower the pump prices.

So, going to JB again lor.

Edited September 11, 2008 by Patcheon

[Lv3338]

In taiwan....they are already in $1.5 range...

our still $1.9-$2....

what wrong here?

Edited September 11, 2008 by Lv3338

[Lv3338]

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[Lv3338]

go here...check for yourself...

 

http://gas.sobi.tw/

[Perrier]

I believe most companies do hedging.

 

So the price should not differ by alot. It should means bigger profit for the cartels.

[Testa_ross4]

Anti-competitive body say no evidence of cartel behaviour in SG mah, that is why price in SG so good.

Edited September 11, 2008 by Testa_ross4

[Gary84]

yeah....exchange rate is now 1.44 : 1

[Gary84]

let us wait.............

till our hair drop.........

[Mzrmazda3]

Drop, drop, drop in our pump prices

[King]

In taiwan....they are already in $1.5 range...

our still $1.9-$2....

what wrong here?

nothing wrong, just 40% tax

[Damienic]

all are acting blur...from US$117/barrel to US$98/barrel still no adjustment in prices...kns..

[Rickster]

Yea, its a whole USD$19 difference...even if the increase in USD exchange rate is fully factored in, prices have still dropped significantly. Damn those cartels...

 

Then.....USD$117 x 1.34 = SGD$156.78

NOW......USD$102 x 1.44 = SGD$146.88