Either way, it looks like directly trading oil is prudent as the oil stocks are not following eg WPL today got hammered. Investors don't see any value there yet???
Isn't the question now, about the price of natural gas?.......... and Woodside is paid in AUD for its oil , that puts it well over the US price , but the US is getting very cheap LPG and has been for sometime now .
Agreed though I must point out that LPG is generally considered to be "oil" and not "gas" since it is (1) partly derived from crude oil (2) is a liquid fuel and (3) is used in a manner comparable to other liquid fuels but very different that of natural gas.Isn't the question now, about the price of natural gas?
Although gas can act as an energy substitute for oil and coal, the reality is that you can't simply fill up tomorrow with lpg if your car has a petrol engine!
Of course the changeovers can be made, over time, and gas can take a higher profile.
The other reality is that as demand for gas increases, so too will its price.
And just as oil has peaked, so too will gas peak.
A good day to seriously look at shorting oil!Anyone else looking at a short on oil? Looks like an off shape head and shoulders pattern.
A close below 100 and it might take a look at 90.
hows my $80 line looking,...
Crude oil for May delivery rallied more than $2 to the new high before closing up $2.03, or 1.8%, at $113.79 on the New York Mercantile Exchange, also a closing high.
At the pump, the average U.S. retail gasoline prices rose to a new high of $3.386 a gallon, up 1.3 cent from the day before and well ahead of the month-ago price of $3.285 a gallon, according to the AAA Daily Fuel Gauge Report.
Last week, a U.S. energy administration said gasoline could surpass $4 a gallon in some areas in the upcoming driving season.
Things starting to hot up with oil again, getting closer to global growth capping territory ie a real economy recession. US pump prices biting even harder -
?
Hedge funds are not producers.The part of the equation that always intrigues me is just how much of all commodities do hedgie types have locked up?? Would their holdings affect the supposed supply/demand eqution?? I really have no idea..
Does oil form into a bubble easily, or is it too viscous??
Cheers
............Kauri
The short covering game in oil is sending speculators broke. It's almost a case of Chinese water torture....Bizzillionaire Pickens has cancelled his shorts and gone long .
Long term it will continue. Short term anything's possible but as far as the logn term is concerned, this has been inevitable since the first well was drilled nearly 150 years ago. It's a finite resource...Starvation, food riots, cropland to biofuels , going to be an interesting and painful future if this game continues.
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