Good Morning Thread ---I think ---Do not know why the heck I am up this early on a Saturday morning .
Ann today is the big Nebraska ---Oklahoma game ---wish you the best --was hoping we would get to play you in the big game . Well if we can not make the big dance hope that you take all the marbles . Hope Tom Osboune wins his Congressional seat ---He was a class act . By the way which party is he running for ?
Yaacov ---here is an article for all our gas guzzling cars ---had to post the article because it requires a fee to see it . As poor as the market is making me I might have to give up the WSJ . The year started out with such great promise but Allan Greenspan took a way the punch bowl . Sure hope he lowers interest rates soon otherwise we might have more than a soft landing .
Sonny ---Do not know if you saw Kudlow on CNBC yesterday talking about the budget surplus. He said that the CBO had us at a 2.7 trillion surplus for the next ten years using a 2.7 % growth forecast . He said since 1950 the USA had grown at a 3.5% clip even with ten recessions thrown into the mix as a average . Assuming that 3.5 % holds true for the next ten years and productivity stays where it is at he believes that the budget surplus will be 7 trillion dollars over the next ten years . That would be amazing in that all the promises both parties are making would be paid for and the national debt would be paid off and Social Security on a sound foundation . I believed Kudlow calculations ---I just hope Congress and our future president can handle the cash wisely ---noticed I did not say spend wisely
BEST WISHES
BILL
Oil Prices Slump After OPEC
Boosts Output by 500,000 Barrels
By MARIE C. SANCHEZ
Dow Jones Newswires
NEW YORK -- Crude oil futures fell sharply at the New York Mercantile Exchange on Friday as traders prepared for an imminent increase in supplies.
Nearby November crude oil futures closed 97 cents down at $32.74 a barrel, more than reversing Thursday's 75 cent gain on fears that Iraq would halt exports next week if the United Nations doesn't approve a euro account for its oil revenues.
"The possibility that Iraq will interrupt production doesn't seem to be an issue, with the U.N. indicating they're willing to use euros," said Atlanta-based Chris Schachte, an analyst with GSC Energy, a trading firm. "That has sapped the market."
Early Friday, U.N. diplomats said that Iraq's request to switch from a dollar-denominated account to euros for its oil revenues is technically feasible, and legal, and that they anticipate no objection to the request.
Prices slid further on reports that Organization of Petroleum Exporting Countries President Ali Rodriguez ordered letters sent to members authorizing a 500,000 barrel-a-day output increase from Monday under the cartel's price-band mechanism.
"The market is acting as if OPEC will unleash another 500,000 barrels a day imminently," said Chris Stavros, an analyst with PaineWebber.
The OPEC price band calls for a 500,000 barrels-a-day increase if the cartel's reference price stays above $28 a barrel for 20 consecutive days. Thursday the OPEC crude basket was at $31.14 a barrel, its 19th day above $28. OPEC will announce Friday's reference price on Monday.
Mr. Rodriguez said, barring a sharp decline in prices Friday, the group will announce the output hike by midnight Monday.
"Some people are taking them at their word," GSC Energy's Mr. Schachte said. "Others question whether OPEC has the spare capacity other than Saudi Arabia. And others think the group will wait until their regular Nov. 12 meeting."
Some market analysts have pegged the actual output increase at below 500,000 barrels a day because of current cheating. But some additional barrels seen imminent.
"We contrast this OPEC uncertainty with the 100% certainty that 30 million barrels will be delivered out of the Strategic Petroleum Reserve" from October through December, said Tim Evans, an analyst at IFR Pegasus, an energy trading advisory firm. "There is a potential for the market to be very quickly swimming in crude. I don't see how prices can fail to come down."
Commercial firms and large speculators sold heavily near the close of trade and ahead of the weekend, analysts said. |
