Bears... don't forget to write 'with love from Idea's Ike...
If you all remember these guys who buy lot 'puut' wre gleeing on Oil price rises, they thought that now the OPEC is going to nail this raging bull down, they could not since DOW 6000, all of them with 80 out 100 post short kept on seeing the marekts making new highs year on year, now as Oil come out of lows of 10$ they were claiming that end of world had finally arrived, comparisons appeared by these convulated logical shorts that soon we will see embargo kind of long lines the market the kind of herds they are sold off big time from highs to 10200 or 1267 on SPZ.. fearing commodity inflation as a serious threat, now when Oil prices get ripped apart will the same reasoning of rising prices will not work opposite in case of falling prices? These falling prices will ease inflationary pressures and as market trades on 'discounting future news' we may see that the very reasons which hurt the market very badly now may help the market as commodities come under pressure and inflationary fears recede from one end, however, the difference is that unlike 10$ where Rusasian default and third world deault becomes a reality we are going to see 16-17$ in prices where consumers and producers can live happily ever after.. and marekts can make some decent run to eat up all the 'puuts' premiums my honorable gentleman love to buy.. I have several times raised this issue that until we don't have strong buyers we will not see strong global markets this present trend will last longer with lot of up and downs however the run would be overall positive, the corrections are occasions to enter, the tops are occasions to buy puts and create cash from the pockets of these hardened self destructive bears.. enjoy the weekend and see you in markets on Monday Amen..bibi with today pick.. my message with love to 'Mr puuts shove them up nice and dry' with all the commodities accompanying all those puuts..........and don't forget to write 'with love from Idea's Ike...
Oil sinks on weak OPEC compliance
Copper sinks on merger developments; grains mixed
By Myra P. Saefong, CBS MarketWatch
Last Update: 2:58 PM ET Oct 8, 1999 Agriculture Outlook
New! Futures News
NEW YORK (CBS.MW) -- Fears that OPEC is failing to enforce production cutbacks sent crude futures plunging Friday, giving back nearly all the price gains made in the past two months.
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Updated:
10/8/99 1:09:18 PM ET
On the New York Mercantile Exchange, November crude sank as much as $1.65 to $20.80 a barrel on Friday, losing two-month's worth of gains that brought futures prices to a nearly two-year high of $25.12 last week. It was last at $20.95 a barrel, down $1.50.
"The spectacular gains of September were wiped out in the first-full trading week of October," said Phil Flynn, vice president and senior metals analyst at Alaron.com. The recent surveys have been a "psychology changer" for the market, which is now in more of a "hysteria" mode than just technical correction. This is the biggest one-day drop since late last year, he said.
Gasoline and heating oil couldn't escape the losses, with both lingering near two-month contract lows. November unleaded gasoline fell 3.16 cents to 59.60 cents a gallon and November heating oil fell 3.76 cents to 53.70 cents a gallon.
"The selling panic in crude oil has reached a level of hysteria that will be tough to maintain," research firm Thomson Global Markets said in its daily report.
Compliance with OPEC's plan to reduce worldwide supplies of oil fell to 87.9 percent in September from 89 percent a month ago, according to a Bridge News survey.
Total OPEC oil production for the month of September rose 70,000 barrels per day to 26.26 million barrels per day. The data helps to confirm investors' fears that despite the cartel's reassurance of production limits at a meeting two weeks ago, high prices have apparently tempted producers to cheat on their limits.
A survey conducted by Dow Jones backed up the information, revealing a 101,000-barrel rise in September output from 10 OPEC members to 23.663 million barrels with compliance at 84.08 percent, down from an August figure of 86.42 percent.
On Thursday, a Reuters survey found that OPEC members raised their production levels by 140,000 barrels to 26.68 million in September compared to August. The survey also saw an 81 percent compliance rate among 10 OPEC members, down from 84 percent a month earlier.
"The main key is, can we hold today's low and can we hold $20 a barrel? Right now the chart from the peak to the valley seems to be a bit over-done by now. If we stay below $21.50 today, and don't show any recovery, traders will be nervous over the weekend," Flynn said.
It was just two weeks ago that OPEC's semi-annual meeting provided reassurance that oil-producers who pledged to keep production down would continue to do so at least until the cartel's next meeting in March.
Meanwhile, losses in crude oil brought the Philadelphia oil service index ($OSX: news, msgs) to a six-month low. See Sector Screamer.
Natural gas futures continue rally
Natural gas futures continued its move higher, jumping 3 percent after this week's report on supplies provided the spark the sector needed ahead of the high winter demand season.
November natural gas rose 6.8 cents to $2.71 per million British thermal units on the New York Mercantile Exchange.
This week, the American Gas Association said supplies of U.S. natural gas in storage climbed 62 billion cubic feet to total stocks of 2,887 billion, on the low-end of expectations for a 60 billion to 70 billion cubic foot rise. |
