Coalpail.com Forum

Our genius President (with EIA) on or about the 22nd June agreed to dump 30 miillion barrels on to the world market in the next 30 days. HO went from about $2.90 (spot) to $2.80. You can forget the measure of OIl (WTI) at Cushing, OK which we kid ourselves means something about world oil prices. Only Look at Brent oil prices is you want to know where your gas and HO are bound. So why the cialis effect, well the world oil market should be reeling from the 30 continuous days of all sorts of oil products being dumped on the market and that was what the DC geniuses had planned. The reality, like cialis, it lasted about 36 hours. (In reality, like the ad if I climbed out of one bath tub to get into the other with my partner at my age I would be in the chiropractors office for a week but I digress)..... After 36 hours the oil market firmed up again and today HO is now above the price it was on June 22 in July, no less. In other words the traders could care less about the O threats, in fact now they know our strategic reserve release threat means nothing. We are powerless to influence the market and they know it now.... the geniuses that run the country have done it yet again.

I was shocked when I went into town today & the price was still at $3.73 that's reg at I think Mirabito or some thing like that--friggin shame we're supposed to be happy with that---oh well

$1.99 Gal in Worcester for 6 hours...
http://thefinancialbrand.com/687/discount-gas-cou ... gital-fcu/

That was great for the fortunate few few, and it was a nice gesture, but millions of folks won't have that luxury this winter with their heating oil options. Man, it is nearly July.......where is it going so quickly????????

Gasoline here is 3.59 and HO is 3.44, cash price. Diesel is 3.85 Off road is 3.54

I wouldn't drive in Worcester if they gave the gas away for free .....

Many years ago I spent a summer in Dedham, MA on business. The guy that christened the town Dedham obviously knew it well.

... place your bets here. A noted expert says this ambush creamed the hedge fund traders and oil is going down to $84 (WTI, todays price about $96) - O and EIA win the day.

http://oilprice.com/Energy/Crude-Oil/Ambush-in-th ... arket.html

My bet is with OPEC and the oil producers, OPEC pleaded for O not to do this and they were ignored. Now I have no sympathy for those gangsters but we have chosen not to drill, supplies are tight and many markets in Asia are rebounding nicely from the crash. So supply and demand is tightly balanced and whatdoya know one week later everything is as it was and headed North except a week ago it was headed South. You can blame Greece, the dollar crashing, sunspots or whatever you like, I'm not an energy expert but let us say I have my suspicions and oil is up again today.

freetown fred wrote:I was shocked when I went into town today & the price was still at $3.73 that's reg at I think Mirabito or some thing like that--friggin shame we're supposed to be happy with that---oh well

It varies quite a bit out here in the capital district. My normal fillup station is at $3.59 for reg crap gas but I have seen it for 2-3 cents below that. Real gas with no ethanol runs about 8-10 cents a gallon higher but is increasingly harder to get.

I would be willing to bet my mileage would go up at least 10% using real gas rather than than crap gas.

Whilst our elected leaders are reducing the budget, they had better put in REAL big numbers besides the home energy assistance programs for this winter.

http://federal-government-ratings.findthebest.com ... nt-program

Good news, All homes above the NJ/NY line will be given a 6"x6" solar panel to heat their homes. You know it's all about sustainability and on a sunny day they put out a genuine 2W. So stay warm. You will feel good about the environment as the frostbite sets in.

Idiots.

coalnewbie wrote:Whilst our elected leaders are reducing the budget, they had better put in REAL big numbers besides the home energy assistance programs for this winter.

http://federal-government-ratings.findthebest.com ... nt-program

Good news, All homes above the NJ/NY line will be given a 6"x6" solar panel to heat their homes. You know it's all about sustainability and on a sunny day they put out a genuine 2W. So stay warm. You will feel good about the environment as the frostbite sets in.

Idiots.

You know, I wonder who the real idiots are here. Our duly elected officials or those of us who keep voting them back into office despite demonstrated incompetence. Let's all vote out the incumbents at every opportunity!

whistlenut wrote:That was great for the fortunate few few, and it was a nice gesture, but millions of folks won't have that luxury this winter with their heating oil options. Man, it is nearly July.......where is it going so quickly????????

Gasoline here is 3.59 and HO is 3.44, cash price. Diesel is 3.85 Off road is 3.54

You hit it right on the nail! I'm really concerned over what's going to happen this winter. There aren't many of us who burn coal or even wood for heat in Northern VA so that means everyone else is dependent on electricity, heating oil or natural gas. Where is a the winning situation in any of them when the cold really hits and the cost of energy "necessarily skyrockets?" It's like watching the train wreck - you know what's coming but you just can't look away. Well, at least I'm not worried about my house. I still have a 1/2 ton of NEPA's finest out back.

Gas here is 3.50 at Costco and 3.75 anywhere else. That's a drop of 15 cents since the release of the Strategic Oil Reserves. I don't think that drop is going to last very long being that nothing has been done to fix the problems that exist. Lisa

Sadly, as I predicted today HO (and hence diesel) up 12c as is gasoline as inventories are apparently dropping (surprise, surprise). Brent oil back at $118 (the real oil price) so exactly what did the President achieve by wasting half of our Strategic Reserve. Remember we and (IEA) are still dumping until July 23rd. We sure showed them OPEC clowns didn't we? DUH. I really worry about this winter as lots of people are going to suffer badly. We gotta get this clown out of the WH. To avoid the mea culpa syndrome they will let the other half go as this little blip was not their fault after all. So if a real problem comes long we are left with sucking dirt - as weak as a baby.

I try to stay out of the political commentary, but I think people are losing sight of some of the economic issues. As I understand it, we use something like 19+ million barrels per day (MBD) of oil. The US release is 2 MBD for 30 days, or a little over 10 % of our use. The release comes after OPEC failed to agree on production increases that normally would accompany things like marginally improving economic conditions and reduced output from Libya. Without the release, you'd probably be looking at higher FO prices right now. It also seems like the release in the longer term could strengthen the factions within OPEC that would support increased output, and also could dampen the ardor of some of the Wall Street types who in the past have pushed up oil prices through commodity speculation.

Under these circumstances, I don't think it's realistic for anybody to have promised or expected a big drop in FO prices from this release. Maybe it stabilizes prices when they otherwise would have gone up, and maybe it produces longer run benefits related to OPEC production and commodity speculation, but it has never been anything more than small and temporary.

I would offer for further discussion that the feeling of "impotence" that stems from the small impact observed so far comes mainly from the fact that we don't have a lot of leverage over the market when we use 2x as much oil as we produce. Hmmm, does that mean coal is a remedy for ED??

Mike

OK, let's put aside politics for now. If you study the many highly technical posts on theoilprice.com I'm afraid you come to the conclusion that the only possible source of extra oil would be SA and it's highly doubtful they have any more to pump. Supplies are tight! That fact is played down so as not to encourage speculators but they are as smart as the hiders. The real solution is to drill more, use less and yes add more coal to the mix. We need ALL of that and we have spent too much time messing around with stupid ideas and will now pay dearly for our stupidity. Chu said our energy bills will necessarily skyrocket and he was right. What he din't say was our economic recovery depends on cheap energy so kiss that one goodbye and with it the realty market (you aint seen nothing yet). So lets' courage the EPA to screw us, dream of carbon credits and go for solar, wind and daffodils. We are now where we are and short term there is no fix. So sit back and enjoy the show - we did it to ourselves.

I'll say x2, but add a little cautious optimism for the Canadian oil sands. That said, it does seem like there aren't a lot of alternatives to high prices for spurring significantly increased production and decreased consumption.

Mike