Crude settles at record $91.86 a barrel

[peejay 327]

Crude settles at record $91.86 a barrel

Associated Press

Crude futures rose to record levels today, supported by worries over political tensions in the Middle East where the U.S. imposed sanctions on Iran and Turkish troops remained massed at the Iraq board to counter Kurdish rebels.

In addition, the market was unsettled by a dawn attack on an oil vessel off the coast of Nigeria by anti-government militants and suggestions that OPEC oil shipments are not rising as quickly as expected.

"On the back of mounting evidence that the oil balances are tight, and tightening, markets are becoming increasingly uneasy over the prospects of entering the winter high-demand season with inventories at too-low levels," Kevin Norrish, an analyst with Barclays Capital PLC, said in a research note.

While rising more than $1, crude futures retreated from an earlier all time high above $92 as investors sold to lock in profits from the latest multi-day record-setting rally.

Oil futures have risen nearly $7 a barrel, or 8 percent, since the government on Wednesday reported a sharp drop in crude inventories in the United States. The inventory numbers reinforced a view that oil supplies are falling at a time of year when they should be rising to meet expected strong fourth-quarter demand.

Light, sweet crude for December delivery rose $1.40 to settle Friday at a record $91.86 a barrel on the New York Mercantile Exchange after rising overnight as high as $92.22, a new trading peak. Crude prices jumped $3.36 a barrel on Thursday.

With the recent gains, the price of oil is closing in on the inflation-adjusted highs hit in early 1980. Depending on the adjustment, a $38 barrel of oil in 1980 would be worth $96 to $101 or more today.

Some analysts argue that the underlying fundamentals don't support such high prices, and say speculative buying is the real reason prices are rising. Tim Evans, an analyst at Citigroup in New York, noted that despite last week's decline in domestic inventories, supplies remain high by historic standards. Also, the Organization of Petroleum Exporting Countries is set to boost production by 500,000 barrels a day beginning Nov. 1.

"What we're seeing ... is rising supply and relatively weak demand," Evans said. He believes oil's "true value" is closer to $65 a barrel.

Other petroleum futures also rose today. November gasoline rose 3.82 cents to settle at $2.274 a gallon on the Nymex, while heating oil futures rose 2.41 cents to settle at $2.4325 a gallon.

November natural gas futures rose 0.3 cent to settle at $7.218 per 1,000 cubic feet.

In London, December Brent crude rose $1.21 to settle at $88.69 a barrel on the ICE Futures exchange.

Pump prices have risen slightly in recent weeks to keep pace with oil's rally. Today, the average national price of a gallon of gas inched 0.3 cent higher to $2.823 a gallon, according to AAA and the Oil Price Information Service.

http://www.chron.com/disp/story.mpl/front/5244699.html

[Hilarious Clinton 452]

Dang! I'm having buyers remorse after getting that new Hummer.

but.... Smart car... PWNED!!

[w¡n9Nµ7 §£@¥€r 123]

The thought of taking a Smart Car onto the Garden State Parkway scares the ####### out of me.

[almaty 19]

same with me...i see 2 wrecks every 3 days...serious smash ups..that little ####### end up under a semi-truck

[w¡n9Nµ7 §£@¥€r 123]

same with me...i see 2 wrecks every 3 days...serious smash ups..that little ####### end up under a semi-truck

What I wouldn't mind seeing is regulation in the more urbanized states (like New Jersey) limiting the height, length and weight of registered automobiles to approximately the size of a Toyota Corolla.

[almaty 19]

same with me...i see 2 wrecks every 3 days...serious smash ups..that little ####### end up under a semi-truck

What I wouldn't mind seeing is regulation in the more urbanized states (like New Jersey) limiting the height, length and weight of registered automobiles to approximately the size of a Toyota Corolla.

or at least have several lanes for them..instead of those big azz suvs...semis etc barrelling down on one's azz

[w¡n9Nµ7 §£@¥€r 123]

same with me...i see 2 wrecks every 3 days...serious smash ups..that little ####### end up under a semi-truck

What I wouldn't mind seeing is regulation in the more urbanized states (like New Jersey) limiting the height, length and weight of registered automobiles to approximately the size of a Toyota Corolla.

or at least have several lanes for them..instead of those big azz suvs...semis etc barrelling down on one's azz

It sucks when I park my compact and when I'm back, there are two giants on both sides. I literally have to back out blind for a good few seconds. If they make 'em so big, they should have see through surfaces.

[almaty 19]

same with me...i see 2 wrecks every 3 days...serious smash ups..that little ####### end up under a semi-truck

What I wouldn't mind seeing is regulation in the more urbanized states (like New Jersey) limiting the height, length and weight of registered automobiles to approximately the size of a Toyota Corolla.

or at least have several lanes for them..instead of those big azz suvs...semis etc barrelling down on one's azz

It sucks when I park my compact and when I'm back, there are two giants on both sides. I literally have to back out blind for a good few seconds. If they make 'em so big, they should have see through surfaces.

and there is always a new dent in the door panel or back panel..i got 4 now on my driver's door..all made by people parking next to me

[w¡n9Nµ7 §£@¥€r 123]

same with me...i see 2 wrecks every 3 days...serious smash ups..that little ####### end up under a semi-truck

What I wouldn't mind seeing is regulation in the more urbanized states (like New Jersey) limiting the height, length and weight of registered automobiles to approximately the size of a Toyota Corolla.

or at least have several lanes for them..instead of those big azz suvs...semis etc barrelling down on one's azz

It sucks when I park my compact and when I'm back, there are two giants on both sides. I literally have to back out blind for a good few seconds. If they make 'em so big, they should have see through surfaces.

and there is always a new dent in the door panel or back panel..i got 4 now on my driver's door..all made by people parking next to me

They should make cars foldable so I can take it into the grocery store with me!

[almaty 19]

same with me...i see 2 wrecks every 3 days...serious smash ups..that little ####### end up under a semi-truck

What I wouldn't mind seeing is regulation in the more urbanized states (like New Jersey) limiting the height, length and weight of registered automobiles to approximately the size of a Toyota Corolla.

or at least have several lanes for them..instead of those big azz suvs...semis etc barrelling down on one's azz

It sucks when I park my compact and when I'm back, there are two giants on both sides. I literally have to back out blind for a good few seconds. If they make 'em so big, they should have see through surfaces.

and there is always a new dent in the door panel or back panel..i got 4 now on my driver's door..all made by people parking next to me

They should make cars foldable so I can take it into the grocery store with me!

lol..i agree...like the Jetsons cartoon

[JohnK 0]

How does a person go about investing in oil futures?

[russ 1]

Open an account at a brokerage that deals in futures. There are dozens. They are happy to take your money.

Keep in mind, one futures contract is for 1,000 barrels. That is about $94,000 right now. The margin requirement is probably around 20% for these contracts, so you would need to put down about $20,000 to trade even one futures contract. Some futures (soybeans for example) have looser margin requirements - you can be 95% leveraged on these. Very easy to lose all of your money in a few minutes. To make any real money at this, you need to be in several positions at once. Oil is quite volatile right now. It is easy to lose a lot of cash - every $1 downward move in the price of oil costs you $1,000. So on one contract, if oil comes down $10/bbl, you have just lost $10,000. There will also be a margin call for you to deposit another $8,000 or so in your brokerage account, or they will sell your contract. Speculators frequently close out all of their positions at the end of each day, since you can lose so much cash having positions open that you aren't watching.

Buying call options on the oil companies may be a better strategy - they tend to move with the price of oil, but are less volatile. They are also much cheaper - an option contract is for 100 shares, though you only need to pay the premium for the option, there is no further downside risk beyond this. If you think oil is going down in price, you can buy put options on oil companies as well.

How does a person go about investing in oil futures?

[Reba 2]

It sucks when I park my compact and when I'm back, there are two giants on both sides. I literally have to back out blind for a good few seconds. If they make 'em so big, they should have see through surfaces.

or have sections of the parking lots where only small cars can park, and another for SUVs and trucks to park.

heck, I have a small SUV, (Ford Escape) and if a couple of Yukons park on either side of me, I have the same dang problem, can't see my way out. I hate 'em, I think they should be outlawed.