Oil jumps $24 per barrel just in one day

[Rich B 5,000+ posts]

Sept. 22 (Bloomberg) -- Crude oil climbed more than $24 a barrel, the biggest gain ever, as the dollar weakened the most against the euro since January 2001, boosting the appeal of commodities as a hedge.

Oil, gold, corn and other commodities climbed as the dollar dropped on concern that a U.S. proposal to buy $700 billion of troubled assets from financial firms will deepen the budget deficit. Oil has risen 41 percent since Sept. 16 as lawmakers pledged fast consideration of the Treasury's plan to buy devalued mortgage-related securities.

``Gold, silver, oil, copper, just about any hard asset, is looking good at this point,'' said Michael Fitzpatrick, vice president for energy risk management at MF Global Ltd. in New York. ``With the dollar down and stocks getting hit, commodities look like a safe play.''

Crude oil for October delivery rose $23.95, or 23 percent, to $128.50 a barrel at 2:23 p.m. on the New York Mercantile Exchange. Futures climbed as much as $24.33 to $128.88 a barrel, the highest since Aug. 28.

The October contract expires today. The more-active November contract rose $6.65, or 6.5 percent, to $109.40 a barrel.

``This looks like a squeeze play,'' said Phil Flynn, senior trader at Alaron Trading Corp. in Chicago. ``All of the contracts are up, but nothing like October. This is the last day of trading and someone is scrambling to guarantee supply.''

Investors looking to hedge against the dollar's decline earlier this year have helped lead oil, gold, corn and gasoline to records. The dollar declined 2.1 percent to $1.4769 per euro, from $1.4466 on Sept. 19. It touched $1.4778, the weakest level since Aug. 29.

`Flight to Quality'

``There's a flight to quality and the energy markets are benefiting,'' said Michael Lynch, president of Strategic Energy & Economic Research in Winchester, Massachusetts. ``The dollar is down again and investors are fleeing to commodities. We are back to the cycle that pushed prices to records earlier this year.''

Oil fell more than $10 a barrel early last week as the bankruptcy filing of Lehman Brothers Holdings Inc. shocked world equity markets.

``A lot of Wall Street traders are more secure in their jobs this week, which is providing a little extra juice to the relief rally,'' said Tim Evans, an energy analyst with Citi Futures Perspective in New York. ``It's still unclear how much the relief on Wall Street will trickle down and lead to increased demand on Main Street.''

Net-Long Positions

Hedge-fund managers and other large speculators increased their net-long position in New York crude-oil futures in the week ended Sept. 16, according to U.S. Commodity Futures Trading Commission data.

Speculative long positions, or bets prices will rise, outnumbered long positions by 19,379 contracts on the New York Mercantile Exchange, the Washington-based commission said in its Commitments of Traders report.

Gasoline for October delivery increased 9.56 cents, or 3.7 percent, to $2.6953 a gallon in New York. Heating oil rose 14.84 cents, or 5.1 percent, to $3.0462. Heating oil is heading for the biggest single-session gain since June 6.

Regular gasoline, averaged nationwide, declined 1.8 cents to $3.739 a gallon, AAA, the nation's largest motorist organization, said today on its Web site. Pump prices reached a record $4.114 a gallon on July 17.

Crude oil prices are ``too high'' because the global economic slowdown may spread and cut consumption, the International Energy Agency's deputy executive director said.

``The economic slowdown in the U.S., Europe hasn't gotten into China, India much, but at some point you have to presume it will,'' William Ramsay said in an interview in Bangkok today.

Brent crude oil for November settlement rose $6.61, or 6.6 percent, to $106.22 a barrel on London's ICE Futures Europe exchange.

http://www.bloomberg.com/apps/news?pid=20601087&sid=a.ugPXZ5Y00w&refer=home

//content.invisioncic.com/y282845/emoticons/verymad.gif.3f39c5c2fd57527b671fad3efdfac756.gif

Click to read more...

 

[denalilvr 10+ year member]

i stopped following the price per barrel..even when it was done to $95 a barrel they still wanted over $4 a gallon..problem is they need it to stabilize at a set price for a long time for us to see it drop..cant keep going from 90 to 105 to 93 to 120..

 

[duece212 5,000+ posts]

http://www.bloomberg.com/markets/commodities/energyprices.html

not up 24 currently

 

[jco1385 5,000+ posts]

cliffs?

 

[bones22 5,000+ posts]

well back up at the pump over the next couple days im sure

 

[dragnix 5,000+ posts]

we're fucked //content.invisioncic.com/y282845/emoticons/crap.gif.7f4dd41e3e9b23fbd170a1ee6f65cecc.gif

 

[jco1385 5,000+ posts]

we're fucked //content.invisioncic.com/y282845/emoticons/crap.gif.7f4dd41e3e9b23fbd170a1ee6f65cecc.gif

welcome to 2000

 

[duece212 5,000+ posts]

we're fucked //content.invisioncic.com/y282845/emoticons/crap.gif.7f4dd41e3e9b23fbd170a1ee6f65cecc.gif

And can't even afford the oil to lube ourselves for the fukn //content.invisioncic.com/y282845/emoticons/crap.gif.7f4dd41e3e9b23fbd170a1ee6f65cecc.gif

 

[dragnix 5,000+ posts]

welcome to 2000

shit happens, stupid time warp

And can't even afford the oil to lube ourselves for the fukn //content.invisioncic.com/y282845/emoticons/crap.gif.7f4dd41e3e9b23fbd170a1ee6f65cecc.gif

it really depends on how adventurous you really are

 

[crunktimes.com 5,000+ posts]

This is the exact reason our commander and chief is trying to pass this 700b bailout, it would help greatly with everything.

 

[dman4486 5,000+ posts]

we're fucked //content.invisioncic.com/y282845/emoticons/crap.gif.7f4dd41e3e9b23fbd170a1ee6f65cecc.gif

70mpg for the win:woot:

but this only means I can JUST afford the fuckin' lube:crap:

 

[dragnix 5,000+ posts]

70mpg for the win:woot:

but this only means I can JUST afford the ****in' lube:crap:

bike? I need a fucking moped

 

[Banana Balls 5,000+ posts]

This is the exact reason our commander and chief is trying to pass this 700b bailout, it would help greatly with everything.

He really is a brilliant man. //content.invisioncic.com/y282845/emoticons/fyi.gif.9f1f679348da7204ce960cfc74bca8e0.gif

 

[jco1385 5,000+ posts]

This is the exact reason our commander and chief is trying to pass this 700b bailout, it would help greatly with everything.

you're thinking short term. i say he personally fits the 785B bill

 

[denalilvr 10+ year member]

This is the exact reason our commander and chief is trying to pass this 700b bailout, it would help greatly with everything.

where the hell do you think that money is going to come from? our taxes..were going to pay for it