Crude heading towards sub-$90 within this week?

[Shull]

greedy f**kers..

Edited September 16, 2008 by Shull

[Wt_know]

when can we expect ron 95 to drop back to $1.6/liter

[Gadgeter]

kind of happy that i switched to auto.. especially during jams.

[N00b]

my guess is it will slowly move dwn n stablise at abt $80

[N00b]

$1.6/l is going 2 b a long wait bro , not to mention tat we may not even c it

[Hondacub777]

Means no need to worry about petrol high price so much?

Means some may buy their big cars without fear of hurting pockets?

Wow,finally i can buy ferrari liao.have everything in place,juz waiting for petrol price to drop .

[Adrianlim13]

if really $50... i buy the cayman for you lar

[Shull]

er...i am effectively paying $1.68 per lit for RON95 now..in Singapore..

 

not to mention i can potentially pay $1.05 per lit for RON97 if i am tad bit hardworking..

[Garlic]

Source: http://www.channelnewsasia.com/stories/afp.../376737/1/.html

 

 

Oil prices surge as AIG bailout prompts rush to commodities

Posted: 18 September 2008 0456 hrs

 

NEW YORK: Crude oil prices surged on Wednesday after the US government's lifeline to insurance giant AIG failed to reassure skittish traders and prompted a rush into commodities as a haven from the financial market storm.

 

New York's main contract, light sweet crude for October delivery, gained 6.01 dollars on Tuesday's close to finish at 97.16 dollars.

 

Meanwhile, London's Brent North Sea crude for delivery in November gained 5.62 dollars to end on 94.84 dollars.

 

John Kilduff, an analyst with MF Global, said part of the reason for the rebound is that the rescue of AIG appears to avert a wider financial crisis that hurts the economy and lowers energy demand.

 

"If AIG had been allowed to fail, the repercussions would have increased the momentum to raise cash and tighten credit," he said.

 

"It would have possibly seized the entire global economy and caused a recession, or worse."

 

Fears of a downturn in demand triggered by the economic turmoil had sparked a fall in oil prices, which have now lost more than 55 dollars a barrel since reaching a record high of 147 dollars on July 11.

 

According to the US Department of Energy, the consumption of oil-based products has fallen some 4.4 percent in the past four weeks compared to the same period last year.

 

The department also said Wednesday that crude reserves sank 6.3 million barrels in the week ending September 12 when US energy production was severely hampered by hurricane weather in the Gulf of Mexico.

 

Thierry Lefrancois from Natixis said oil "could be considered a safe haven asset" and that the ongoing stock market turmoil pushed up prices.

 

"Widespread market disruptions continue," said Aaron Smith at Economy.com.

 

"This is evident in an unprecedented flight to quality. Investor concern is also growing about the Fed's ability to support markets in the future as the central bank's own balance sheet is reduced."

 

The US Federal Reserve on Tuesday announced an unprecedented rescue loan of up to 85 billion dollars to save insurance giant American International Group from bankruptcy in a financial crisis that grew out of the US sub-prime, or higher-risk, mortgage sector.

 

The crisis has claimed two major victims this week. US investment bank Lehman Brothers filed for bankruptcy while another Wall Street firm, Merrill Lynch, was forced to sell itself to Bank of America for 50 billion dollars.

 

Oil plunged this week to under 90 dollars per barrel amid the financial turmoil, with Brent crude hitting 88.99 dollars on Tuesday - the lowest point for about seven months.

 

Markets were also keeping a nervous eye on news out of Nigeria where violence has continued.

 

Armed Nigerian militants who have declared an "oil war" in the restive south of the country claimed on Wednesday to have blown up a major pipeline in their latest attack on oil installations in the region.

 

The Movement for the Emancipation of the Niger Delta (MEND), the most prominent of the groups operating in the creeks and swamps of the Niger Delta, said it blew up a pipeline it believes is operated by Royal Dutch Shell and Italy's Agip.

 

The latest attack, a rare daylight operation, was not immediately confirmed by the military deployed in the region. - AFP/de