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Oil price will fall back to $93 Lehman predicts
By Emma Thelwell
Last Updated: 11:56pm BST 14/07/2008
Crude oil will unwind much of its meteoric rise, investment bank Lehman Bros has predicted, as the Opec oil producers raise their supply and the slowing global economy squeezes demand.
The bank expects the price of crude to fall back to about $93 a barrel.
Banking On Demand Destruction
Robert Lenzner, 07.14.08, 6:00 AM ET
How can you make good news out of bad news? The answer is demand destruction. With regard to record prices for a barrel of crude and a gallon of gas, demand destruction refers to drivers not driving, planes not flying, trucks not trucking and the hit to disposable income from the pain being suffered by consumers everywhere.
Brilliant idea, but it wasn't from Croesus. It belongs to Don Wordell, a rather sharp portfolio manager for the Ridgeworth Mid-Cap Value Fund (SMVFX). Wordell sold all of his oil stocks because he believes the price of oil is about to drop from $140 to the $75-$80 per barrel level, or as he says "back roughly to the cost of production in the U.S." Other investment managers are hopeful to see $100-a-barrel oil in the not too distant future. The price of oil, they feel, is the key to the economy and the financial markets.
Originally posted by jprophet420
nice ... in the title.
Speculators Spooked because one source speculates that in the future we will see Oil Price Dropping Fast.
Kind of misleading IMHO.
Originally posted by downtown436
At this point I think Lehman bros. will do anything to get their stock price back up, as it has been severely pummeled lately, with many people shorting the living crud out of it.
I think it is a last ditch effort on their behalf to knock down oil prices a little bit, maybe to scare some oil speculators back into the financials.
Again Lehman is in deep doo doo.
Originally posted by CaptGizmo
Who exactly are the oil speculators? I have not heard or read anywhere who these speculators are.Does anyone have a list?From what I have heard at least on the news networks is that it is just a hand full of hotshots on wall street.Is this true?
Originally posted by Sarkazmon
Oil at $93?
Yay! We're saved!!
Originally posted by spacedoubt
reply to post by CaptGizmo
I would not be surprised to find out that the leaders of Israel, and of Iran (amongst others) were both big speculators. Every time they get into a verbal fistfight. A barrel of Oil goes up 2 bucks.
Of course, I am just speculating.
But wouldn't it be nice if you could become a multi-millionaire by screaming at your next door neighbor?
[edit on 14-7-2008 by spacedoubt]
Brazil energy giant Petrobras said on Monday that a strike started by its oil workers at midnight on Sunday will cut its production by 300,000 barrels per day.
www.reuters.com...
MOSCOW (AP) -- Three of Russia's oil projects, which all have foreign participation, failed to achieve oil production targets in 2007, Russia's Audit Chamber said Monday.
hosted.ap.org...
Originally posted by St Udio
reply to post by Dubyakadubla
the 'speculators' on energy & oil better be wary...
not so much about the volatility bubble of oil -->
but because the "Fed."
is being given carte' blanche on setting the new rules and guidelines on Who can Buy How many Futures of What commodity and When
--- this aint no 'free market' any more ---
it smells like Fascism
the Presidents decision to drill-drill-drill @ the 50 mile limit off shore
will not ake a dent in oil prices until 2030
both China and to a lesser extent India are increasing their oil consumption by magnitudes and the USA will have to pay the global market price for oil... if everyone slows their demand the price may go down to maybe $100bbl but anything below $100 USD is wishful thinking
and pie-in-the-sky irrationality.
Leaman is 'predicting' ??? Leaman can't admit it itself is going down the tubes...
so i'm supposed to listen to these overpaid parrots, squaking about oil speculators jumping ship and oil getting priced like it was in the good-ol'-days ??
slice up some of that Humble Pie to the market-watch talking heads on TV and to the analysts @ Leamans... who all along this 20+% bear-market slide were pumping the public with the insane advice that now with the financials at bargain prices is the time to by them.
instead of even reluctantly saying that Gold is where to preserve your wealth at. =>MSM Belief-Systems (BS).... whadd ya expect
Originally posted by dbates
All the stories I'm seeing in the news seem to indicate that oil will go higher still. Don't short-sell oil unless you want to lose your shirt. It will hit $150 before it drops down to $120.
Brazil energy giant Petrobras said on Monday that a strike started by its oil workers at midnight on Sunday will cut its production by 300,000 barrels per day.
www.reuters.com...
MOSCOW (AP) -- Three of Russia's oil projects, which all have foreign participation, failed to achieve oil production targets in 2007, Russia's Audit Chamber said Monday.
hosted.ap.org...
The western United States has the largest untapped high quality oil shale reserves in the world. It is called the Green River formation. The formation is located in parts of Colorado, Utah, and Wyoming. Many processes exist for getting a synthetic form of crude oil out of oil shale. If we were to produce about 12 million barrels of shale-derived crude oil per day, we would not need to import a single drop of crude petroleum. It is known that the process is currently cost effective at $70 per barrel. The formation is also known to be so large that the region has a capacity that can last several centuries.
Both mining and processing of oil shale involve a variety of environmental impacts, such as global warming and greenhouse gas emissions, disturbance of mined land; impacts on wildlife and air and water quality. The development of a commercial oil shale industry in the U.S. would also have significant social and economic impacts on local communities. Of special concern in the relatively arid western United States is the large amount of water required for oil shale processing; currently, oil shale extraction and processing require several barrels of water for each barrel of oil produced, though some of the water can be recycled.