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$200, $400 Oil by end of 2009, and 2010-12, respectively


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Bloomberg now: "The Voters will vote for the one who will they think will get oil prices down."

 

Clueless and wasteful American voters truly deserve the firestorm headed their way !

 

- Just like the clueless UK property bulls deseve their now-sorry fate.

 

They should be voting for the one who will put oil prices UP,

and spend the extra tax money in the right way.

 

So American living standards will stay in a Crash-Cruise-Speed decline, until these fools wake up!!

 

Let them make heroes out of Villains liek Greenspan, that lie and help them ruin their own futures.

What they really need is strong leaders to take them thru the meaningful pain (of higher oil prices)

into a less-wasteful future.

 

They will not realise it until it is way too late. Except for that tiny minority that acts to protect

themselves and their families

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If that happens then all I would retract all my past critcism of TW, who as far as I could tell from his previous FSN input never committed to the direction of any moves; unless he just saves that for subscribers.

The three of them were happy to go "on the record" of stating this level. Talk about leaving your knackers exposed!

I'd be interested in seeing his past record too, as far as i'm aware his calls on the dow and s&p have been close

 

I also read somewhere yesterday that Saudi have projected 2009 on a minimum of $90/ barrel. I seriously doubt if OPEC will let oil fall this low

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The three of them were happy to go "on the record" of stating this level. Talk about leaving your knackers exposed!

I'd be interested in seeing his past record too, as far as i'm aware his calls on the dow and s&p have been close

 

I also read somewhere yesterday that Saudi have projected 2009 on a minimum of $90/ barrel. I seriously doubt if OPEC will let oil fall this low

 

90 is a very good number, so if we ajust C to 85 as a low it could be more realistic outlook than 75

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TIME to buy oil, maybe

 

aa0bs9.gif

w579.png

 

With the Saudi's indicating a willingness to stabilise supply rather than cut back, add concerns of demand destruction to the table and perhaps not wishing to be seen as the driver of it, then there's mooted moves by some to look at alternatives possibly an irritation but who knows, would the chart not go out the window as the cartel look more on wider consequences than the price?

 

Just asking?

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Oil ends at 5-month low on OPEC talk

Crude futures decline amid expectations the cartel won't officially cut production, and as Hurricane Ike appears set to miss the Gulf production fields

 

crudeoil.mkw.gif

 

NEW YORK (CNNMoney.com) -- Oil prices fell Tuesday, as investors believed OPEC will keep production at current levels, and as Hurricane Ike lost strength over Cuba.

 

U.S. crude for October delivery settled down $3.08 to $103.26 a barrel, the lowest close since April 1, when oil ended the day at $100.98 a barrel.

 

Waiting for OPEC: The Organization of Petroleum Exporting Countries met Tuesday to discuss production levels in light of falling prices and a perceived pullback in demand as the world economy slows.

 

Slumping global energy demand has caused the price of crude to fall sharply from the record-high $147.27 a barrel, set on July 11.

 

/more: http://money.cnn.com/2008/09/09/markets/oil/index.htm

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With the Saudi's indicating a willingness to stabilise supply rather than cut back, add concerns of demand destruction...

 

Right - OIH broke below the lower channel on my chart yesterday- so it is headed lower.

However, I think the Saudis have a mixed message, not a purely bearish one- although the market

is focused now on the bearish part.

 

Here's a part of the article - this point is not getting enough attention:

 

"Another analyst said that while it looks as if OPEC will not officially cut production, it may try to adhere to quotas more strictly.

 

"They are probably 700,000 to 800,000 barrels each day over their quotas," said Andrew Lebow, a broker at MF Global in New York. "The chat is that they might adhere more to the quotas."

 

"As usual, the Saudis are the key," said Lebow. When it comes to the "increase over the quotas, they are the ones that have the lion share."

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OPEC has room to reduce output while staying above quota, the question is do they want to be the whipping boys for McCain etc al. Impossible to judge but my wild guess is that they'll maintain status quo for now, which would put further downward pressure on oil. Having said that, I have just now opened a buy position on DB commodity index!

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OPEC has room to reduce output while staying above quota, the question is do they want to be the whipping boys for McCain etc al. Impossible to judge but my wild guess is that they'll maintain status quo for now, which would put further downward pressure on oil. Having said that, I have just now opened a buy position on DB commodity index!

 

They can have the political benefit (with the Bushies and McCain) of having maintain the quotas,

while quietly cutting back on their over-quota production.

 

I think the market may quickly realise this is what is going to happen.

 

The retracement of the "Once-Trod-Path" (for Oil) now looks like it is over

 

Here are the once-trod paths for the Euro

aa1eg7.gif

 

We have nearly closed the higher and middle ones.

(And the lower one might disappear, if my chart went back further)

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Right - OIH broke below the lower channel on my chart yesterday- so it is headed lower.

However, I think the Saudis have a mixed message, not a purely bearish one- although the market

is focused now on the bearish part.

 

Here's a part of the article - this point is not getting enough attention:

 

"Another analyst said that while it looks as if OPEC will not officially cut production, it may try to adhere to quotas more strictly.

 

"They are probably 700,000 to 800,000 barrels each day over their quotas," said Andrew Lebow, a broker at MF Global in New York. "The chat is that they might adhere more to the quotas."

 

"As usual, the Saudis are the key," said Lebow. When it comes to the "increase over the quotas, they are the ones that have the lion share."

 

The penny drops with that, so really, by better control they don't really have to do much at all?

 

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OPEC agrees to curb oil overproduction

Ministers of oil producing nations announce that they will cut back 520,000 barrels a day

in overproduction of crude to avoid more energy turmoil.

 

VIENNA, Austria (AP) -- OPEC oil ministers have agreed to curb overproduction by more than 500,000 barrels, in a compromise meant to avoid new turmoil in crude markets while seeking to prevent prices from falling too far.

 

The move reflects OPEC efforts to cover all bases in an oil market that saw prices spike to a new record just short of US$150 a barrel in July, only to shed nearly 30 percent off those peaks in subsequent months.

 

An OPEC statement issued after oil ministers ended their meeting early Wednesday said the organization agreed to produce 28.8 million barrels a day.

 

OPEC President Chakib Khelil said that quota in effect meant that member countries had agreed to cut back 520,000 barrels a day in overproduction

 

== ==

 

a cut of this size can make a difference.

If it doesnt put prices higher, or at least stabilise, there may be more cuts

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oil shortages begin

"Up to tomorrow (Sunday) we have guaranteed flights, but not on Monday because no-one will supply us with kerosene," Fantozzi said, according to union sources quoted by Italian news agencies"

http://news.yahoo.com/s/afp/20080913/ts_af...er_080913192954

 

Yes but is the demand destruction now going to takeover and being reflected in the sinking prices? Don't trade oil, just watching the price though.

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  • 2 weeks later...
Looks like the uptrend didn't pan out, but is the drop to $89 today a new double bottom (to the $90 on 16/9)?

 

yep, my analysis on oil has been a childplay until now. here is the real thing:

 

1. First we check the monthly, and the monthly has no signs of a bottom yet, it looks really bad:

oil1006-monthly.png

Now that we found out that we are STILL IN THE 'A' fase (yes!!!) , we will find the 'A' first.

2. Weekly:

oil1006-weekly.png

3. And finaly, the daily:

oil1006-daily.png

Conclusion: we are close to the 'A' fase, I still have to work on the 'B', and 'C' but i will post the progress so far made.

edit:

now I don't laugh at Tim Woods when he says 40 bucks oil

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