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Light crude....

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barry_1
Super Contributor
...has jumped a Dollar on CNN money,now $115 plus,highest $116
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32 REPLIES 32
Russ
Super Contributor
I've been wondering all day why sol isn't responding to the rising oil price but I see a bit of movement now.Sometimes there comes a tipping point when everyone suddenly climbs in.I hope that's coming.
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barry_1
Super Contributor
Perhaps Russ,....light crude has just shot up to $19.10 .i only state these figures b'cos SBK only gives the Brent crude price.
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barry_1
Super Contributor
doing nicely with SOLSBA,thanks,bought yesterday.
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Russ
Super Contributor
I've been watching brent oil on livecharts.Seems to be dipping again.I still see the next resistance level of sol at 121.50 which is also the 38.2% retracement of its high on 22 May this year.Now brent has shot up again as I write.It seems that the dips are just bringing in more buyers.
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barry_1
Super Contributor
Light crude has now broken through the $120.10c level with great ease,the next resistence level according to an article on CNN is around $125....we better all enjoy the one rand drop in pertol due next month....ah well suppose we can't have our cake and eat it as well....no wonder BANKS were so badly punished today,leaving interest rates the same at the next meeting in Oct wont cut it as financials are in dire need of relief,unless we have a half percent drop,i see indusrty etc all suffering along with more unimployment!....of course this might be a spike,how ever one must note the speed and ease of the upturn against the slow decline,then i wonder IF IT MIGHT LAST for a longer period.
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barry_1
Super Contributor
Light crude futures for Oct are up over six Dollars and now standing at $121.00 informed opinion now seems to be that oil will always be more expensive as costs of production have risen.Now the cheaper coal prices are starting to rise again.
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barry_1
Super Contributor
price a Dollar down at $121 ,still five Dollars up,unlikely to fall back all the way though as America seems to be spoiling for a fight with Russia these days....They are now going to install missiles in Poland ,supposedly to counter Irans missiles....Russia objects and says if they go ahead ,they will counter with something more than diplomacy,which can only mean they will stop supplying the west with oil!
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Russ
Super Contributor
Yes,oil and sol have both come off quite sharply.I sold half my solsba at 26 and have just bought them back at 23.Oil seems to be edging up again.I hope you are right Barry.
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Not applicable
Spot on Barry. Not long till the start of the energy wars. And America will be the agressor.
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scandal
Super Contributor
Oil post biggest drop in 17 years...those long on SOL might be hurting come tomorrow... http://money.cnn.com/2008/08/22/markets/oil/index.htm?postversion=2008082215
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DF
Contributor
Surely the hedge position will take care of big drops? I refer to Sens 1/8/2008 "Sasol hedges about 30% (oil equivalent) of its South African synthetic fuels production Sasol has entered into hedging transactions (zero cost collars) for 16,425 million barrels of oil (equivalent to about 30% of its planned South African synfuels production) for the remainder of the 2009 financial year. The hedge will provide downside protection should monthly average dated Brent crude oil prices decrease below US$90/ bbl (put level) on the hedged portion of synfuels production. In the light of very volatile oil prices, Sasol believes that the hedge that has been entered into will mitigate the risk of any substantial fall in oil prices."
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barry_1
Super Contributor
Light crude is very volatile at this time on the American market,from about ten day ago the price rose from below ten Dollars to a high of over twrenty one Dollars on Thursday last,then plunged to foutteen Dollars on Friday,on a speech by Bernanke that he wont raine interest rates at this time ,leaving them at two percent.The jittery market sees only the positive in this not closely studying his speech.He also indicated that inflation is taking off and getting away from being well controlled.This is resulting in Stagflation.i.e. no growth in income earings but a rise in inflation.More trouble in the future for them i'm afraid!...A number of American bankers have said that the crisis is still going to linger on for along time and the true bottom won't be reached for at least the next eighten months! REALLY ONLY MY OPINION,PLEASE DO YOUR OWN RESEARCH BEFORE TAKING ANY ACTION.
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barry_1
Super Contributor
Although crude has fallen back now,i don't see any comparison of this American action to the earlier Russian action action of trying to put missiles in Cuba .At the time Kennedy sent a string of warships towards the Russian fleet carrying the missiles,upon which the Russians turned back and did not proceed.The Americans did the right thing in that instance.Probably most newspaper reporters were not born or too young to remember.
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barry_1
Super Contributor
Dare i tell forumites?....Co To CNNMoney.com and read how fears that a hurricane Gustav now approaching Cuba might harm oil installations in the gulf....american light crude futures now $116....plus other tensions of political natures.
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barry_1
Super Contributor
Just gone 3.30pm our time Brent 112 Dollars ,LCFs have jumped to $118....LCF=Light Crude Futures
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DF
Contributor
Hi Russ, Still holding onto those solsba's??? I also sold mine @ 26c and bought on 22c..... Very tempted to sell @21c and take little loss...
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Russ
Super Contributor
Hi DF.I'm still holding and hoping for about 25c.If oil keeps rising it will get there.Patience!
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Russ
Super Contributor
SOL had a good close yesterday.I'm hoping for another.
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DF
Contributor
Volumes not too bad today... was just scary when it went down to 18c on monday I think it was....
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