Oil Price Watch

[uls]

so far the market seems satisfied with assurance from Bernanke that he will act if the US economy deteriorates further

that assurance alone already keeps oil price from crashing

[pop3corn]

Gago kse sila eh, sobrang nila hinedge ang commodity na oil eh, Kaya nowhere to go but up ang prices, pag bumababa ng konti yare din ang economy.

ang Hirap yan artificially eh lagi nila pinapataas ang Lagis thru some world event or crisis, why bec they're trying to protect their money sa investments.

The problem is with the advent of computers, people all over the world can cut spending at enjoyin na Lang and efficient benefits ng computer age. the more na tinataas. Nila yan oil, the more people will tighten belts, and therefore no cash flow or spending, and therefore hurt economy.

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Hindi PERa ang nagpapaikot sa mundo, kundi pure kinetic energy ng bawat Tao na gumagalaw, kumikilos at nagtrabaho. That's the money maker, the problem with making money out of money is dependent Ito sa amount raw labor or movement ng Tao. Curtail that with skyrocketing prices, and people will just stay at home and be satisfied with just the benefits of the Internet.

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[uls]

like i said, the market cares more about central bank monetary policy

ECB's Draghi says ECB can buy 3 yr bonds

[uls]

OB, when you have central banks planning to flood the world with fiat money natural tendency of fiat money holders is to hedge against dilution

where can you hedge? equities, commodities

[uls]

[uls]

Asian Chemical Connections

A barrel of Brent crude oil cost $88.49 a barrel in June. Yesterday, it was trading at $116.55 a barrel.

In the intervening period the global economy has substantially weakened, most notably in the case of China, as the problems that have been identifiable since late last year have become widely recognised.

China's official GDP growth is likely to be around 7 percent this year, close to the government's targets, says Glenn Maguire, chief economist at the Sydney-based economic consultancy Asia Sentry Advisory.

But he warns that real, underlying GDP growth could fall to 3-5 percent in 2012, reflecting what the polymer markets are telling us.

And yet the oil price has rallied, resulting in the Group of Seven industrially advanced nations urging oil producers in late August to "increase their output to meet demand".

The problem, as China illustrates, however, is that the oil-price rally has little to do with demand. As we discuss in Chapter 3 of our book, Boom, Gloom & The New Normal, oil prices are about speculation. The increases over the last few days are, for example, about excitement that the Fed might be about to give speculators another free lunch to gamble with even more stimulus money.

[eminem6480]

Effective yesterday, 04 September 2012, most of the oil companies implemented a decrease of P0.90/l for gasoline and P0.20/l for regular gasoline. There was no adjustment effected on diesel.

Oil Price Monitor

[ZENMasterTYL]

pwede na ulit magpa gas

[Ry_Tower]

An just like that, oil futures prices dropped below $114.

[uls]

still above pre-bernanke-jackson-hole-speech level

considering weak PMI numbers showing global manufacturing slowdown oil price should be crashing. but it's not. it's stuck in a +/- $1-$2 range

economic reality should be pulling down the price of oil to $100 or below... but anticipation of stimulus from major central banks is holding up oil price