Visit our COVID-19 site for latest information regarding how we can support you. For up to date information about the pandemic visit www.sacoronavirus.co.za.

bs-regular
bs-extra-light
bs-light
bs-light
bs-cond-light-webfont
bs-medium
bs-bold
bs-black

Community


Share knowledge. Ask questions. Find answers.

Online Share Trading

Engage and learn about markets and trading online

Bad news

Reply
Brazen
Super Contributor
Opec spare oil production capacity has slipped below two million barrels per day (mbd) for the first time in nearly two years, contributing to a tight global oil supply situation, the International Energy Agency (IEA) said today. In its June 10 oil market report, the Paris-based energy watchdog for 27 oil consuming nations also said it will consider making a strategic stock release in response to tight oil supplies and "abnormally high" prices.
0 Kudos
11 REPLIES 11
john_1
Super Contributor
PEAK OIL. we will know we are there when prices spike and capacity can not be increased to meet demand.PS... I reserve the right to be wrong about this.
0 Kudos
Not applicable
your a star!
0 Kudos
Pam_1
Regular Contributor
OPEC understands the Afrikaans expression all too well - As dit pap reen, moet jy skep. Problem is they seem to be very successful in manipulating the rainy weather for the whole world! A decade ago the USA would just start another little war to get back control, it seems that era of history is (fortunately) over. No question we will pay dearly for energy in future. OMO.
0 Kudos
duke_vest
Frequent Contributor
yes i agree. but this is the opportunity for nations to start exploring avenues of energy other than oil. the arabs and the americans however want everything to run around oil and thus treat any other resources in mafia style. eg. why has the hydrogen motor not been fully introduced into the market yet? because the money boys will have a fit if their pumps arent needed anymore.
0 Kudos
saash
Super Contributor
Costs of convertion or of new technology. When the market is paying too much for oil, Hydrogen conversions will become the cheaper alternative, where the economies of scale can then kick in.
0 Kudos
scandal
Super Contributor
Ladies and drama queens watch this space. The US will simply open up it's reserve oil fields (that have to date been off limits - green environment etc) Bush already negotiating with congress and we will see supply catch up slightly with demand. At the moment there is a big boom in construction of deep sea exploration vessels (i build them for a living) yet nothing has come through for reception terminals and floating process plants. The big money is saving up for land based oil exploration in the US. Give it a year or so. This is th US economies recovery plan, at these prices with their reserves they can and will operate profitably even with their tight environmental standards.
0 Kudos
Robbie
Regular Contributor
11 years ago, 97% of the volume of all futures transactions in the USA was speculation and only 3% hedging. (I then lived and traded there) I doubt that it's much different now, but let's say that it changed to 90%, and let's say that Crude oil traded on NYMEX is even less than 90% speculation (which I doubt), then the oil price is still very largely determined by speculation. The oil producers will definately take part in the speculation play (and I am sure they play big time), but the difference is that they have the product to deliver if they want or if they have to.
0 Kudos
Wizard
Super Contributor
Because Bush has planty of equity in Exxon Mobil!
0 Kudos
Not applicable
Robbie...as far as I know there is no way of telling what is speculative and what isnt....the figures I have heard is that is is estimated that about 20% of the price is speculative....
0 Kudos
john_1
Super Contributor
Define speculator, because everybody is in it for a buck.
0 Kudos
Pam_1
Regular Contributor
The volume of Light Crude Oil Futures (C078,CL,NYMEX)increased from 40 000 barrels/day in February to 400 000 bbl/d currently. Thats a 10-fold increase in 3 months. This can not be explained by expansion in drilling exploration, new oil fields or refinery capacity added, or even additional cars in China and India or the whole world for that matter. All oil tanks and oil tankers on the ocean are full to the brim in the belief that the stuff will sell for more next month. The increase in volume traded on the NYMEX is the same barrels' papers being sold from Peter to Paul, many times, while the stuff remains in a tanker in the gulf. If this is not speculative I don't know what is.
0 Kudos