Oil rebounds above $102, gasoline up 6%

www.marketwatch.com...

SAN FRANCISCO (MarketWatch) — Crude-oil futures broke a five-session losing streak Monday, gaining 5.5% to settle above $102 a barrel, as last week’s steep losses lured buyers to a basket of beaten-down commodities.

It didnt take long before oil moved past $100. Looking at market watch's main page right now, and oil is at $102.99....+$5.91.....+5.98%

Gold is also making a pretty quick "recovery" since it fell last week.

Heres what Jason Schenker, chief economist at Prestige Economics LLC in Austin says in the article.

He noted that some of last week’s recent volatility came from “a flurry of participants exiting their positions as a result of technical breeches on the downside” and ahead of Friday’s jobs report, which showed stronger April payrolls growth than anticipated.

“Once the proverbial blood has been washed from the Street, an upward trend for crude oil prices is likely to resume,” he said in an email interview.

Some are saying the oil price will go down, some are saying it will continue to rise.....

Oil prices will most definitely continue to rise as global oil production cannot increase although global oil demand increases every year. As oil rises we will hit a certain price that will cause demand destruction and economic collapse, then the economy will recover and the price will rise again until we hit another point when demand destruction kicks in and we have another economic collapse. So basically what I'm trying to get across here is that we are witnessing the end of economic growth as we have known it. Our civilization has hit a peak and short of some miraculous alternative energy source as useful as oil I don't see our economies recovering.

As oil production declines in the next decade, prices in all goods will rise and transportation costs rise, but wages will not rise and will in fact probably decline. This will cause much social unrest as people have to give up their standard of living and accept a new reality.

Originally posted by buni11687
www.marketwatch.com...

It didnt take long before oil moved past $100. Looking at market watch's main page right now, and oil is at $102.99....+$5.91.....+5.98%

Gold is also making a pretty quick "recovery" since it fell last week.

And Silver (We keep a close eye on it around here) has gone from 33.20 to 37.80. Since Friday.

I've been keeping a very close eye on the three big markets (and grains) for over a year. Took me that long to convince the wife to let me pop ten grand into silver. Anyways if you look at the historical charts you'll see the upward trend - and it's not necessarily tied hard to the dollar - for the simple reason that it's a money making factory.

The Kitco analysis is pointing the gold/silver surge as tied to crude and more importantly, the Euro troubles. Link. That's where this surge is coming from right now, regardless of crude's dollar pegging even though that continues to sag.

My personal gamble right now is looking at the pump prices and filling my cans on a dip before it begins to rise once more. I've been seeing some reports of predictions for gasoline at the pump dropping fifty cents by Memorial Day. I'm not buying it at this point. Link

reply to post by epsilon69


....oil demand increases?

How about: Failing US Dollar.

Demand hardly touches oil prices.

I've given up paying attention any longer, what's the point? Either you can afford it or not, currently I'm spending around $100-150 a week on gas. My personal solution is to buy a motorcycle, I would prefer not too but I don't really have much of a choice as of now. The scumbags manipulate the price and as someone mentioned previously the dollar is weak.

The entire commodities complex was bombed last week, and heavily shorted, so I think a good percentage of today's gain in crude can be attributed to short covering as the dollar came off it's high (USD weakness Rockpuck), The dollar managed to print a 75 handle around noon, but failed to hold it.

Last week we had both Rogers & Pickens calling for higher oil prices (into Q-4) based on increasing demand vs stagnant production. I tend not to bet against those guys....we'll see.

The low print on Friday Silver was a brief, anomalous intraday spike (handful of trades). Personally I prefer to use the closing price for gaging daily performance (+/- %) like the market does. I have a Friday closing of $35.62 (basis Globex).