Crude Oil = $130
I guess the markets are not enamored with the Paulson plan.
The dollar has dropped the most versus the Euro since its inception, according to Bloomberg. And ddue to the collapse of the greenback, Briefing is reporting that COMDX Crude oil trades to new 2-month high of $130 per barrel.
Crude Oil, October Futures (delayed 20 minutes)
chart via Barcharts
Monday, September 22, 2008 | 02:45 PM | Permalink
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Comments
BREAKING NEWS:
CBOT bans long-buys of crude ;)
Posted by: tbapple | Sep 22, 2008 2:47:10 PM
I was just looking at that exact same chart on BarChart!
Anyway, I think this shows that even if you rob Peter to pay Paul, Peter still comes after you. It's a shell game that has run its course. The US does not have an infinite balance sheet and the world knows it.
Posted by: CNBC Sucks | Sep 22, 2008 2:49:33 PM
At least now not being allowed to short GM makes more sense.
Posted by: rhodium | Sep 22, 2008 2:56:14 PM
No way out?
Deflation or inflation, all paths available appear to produce significant financial pain. But different paths distribute the pain in different ways. Not all serve the interests of justice. Unfortunately, the path of least pain may not be the path of maximum justice.
This may be a good time to remember that money is only a tool, a means to other ends. What ends do we pursue as a nation?
Posted by: Wisdom Seeker | Sep 22, 2008 2:58:41 PM
Is there an angry mob I can join to march on the Fed? I can supply my own pitchfork.
Posted by: Royce | Sep 22, 2008 2:58:54 PM
Why is everyone getting their panties all up in a bunch? It's just the Oct/Nov spread blowing out on covering in the oct contract. If you look at the last expiration in soybeans, the same thing happened (the sep/nov spread moved $3.00 in the last two days of trading, roughly a 33% gain in sep soybeans). Calm down.
Posted by: Sid | Sep 22, 2008 2:59:43 PM
If you turn this chart upside down, you get a chart of the trust in the "full faith and credit of the United States".
Posted by: Winston Munn | Sep 22, 2008 3:00:29 PM
Huh? I'm trading the forward crude contract right now at 108.73...am happy to sell you all that you want at 130.
I think that BarChart may have it wrong.
C
Posted by: Carl | Sep 22, 2008 3:03:39 PM
Sid:
i'm curious: do oil options expire monthly? Why haven't we or don't we see spikes like that on a regular monthly basis? looking at the presented chart, this recent spike looks nothing like the past spikes. not saying your case isn't correct, but it's not evident from the chart given.
Posted by: man from nantucket | Sep 22, 2008 3:08:57 PM
It's clear to all who care to see 'black gold' isn't just a metaphor any more.
Flight to 87 octane quality, anyone?
Posted by: Davis X. Machina | Sep 22, 2008 3:10:09 PM
December contract is up hard, but is at $108. This must have been a futures expiration thing.
MontyHigh
Posted by: MontyHigh | Sep 22, 2008 3:14:53 PM
sid: nevermind, i see the chart is Oct oil.
Posted by: man from nantucket | Sep 22, 2008 3:18:50 PM
First impressions are everything, sometimes. The dramatic decline in the US$ today is clear evidence of the huge tradeoff that the Fed/Treasury are having to deal with in trying to single handedly 'save the system.' Holders of $'s are certainly voting today as they have over the past week coincident with all the Gov't moves since AIG. The $ index drop today is the most in 4 years, the CRB index is at a 3 week high as oil is now limit up as the front month contract expires today, the 10 yr bond yield is rising to the highest level since mid Aug, the implied inflation rate in the 10 yr TIPS has spiked from 1.6% (panic move of course) to 1.98% in 3 trading days, and the mortgage coupon on a FNMA 30 yr is rising back to almost 5.5% from its low last week of 5%.
Posted by: Peter Boockvar | Sep 22, 2008 3:25:19 PM
Could today be the day that we crash hard? I'm talking 600+ drop AND oil/gold/silver going nuts?
Posted by: Jonathan | Sep 22, 2008 3:28:27 PM
Drill Baby, Drill ! - The GOP mantra
http://www.youtube.com/watch?v=xhvRQyRdVEI
Posted by: km4 | Sep 22, 2008 3:34:49 PM
Time to load up on SOLF!!!!!
Posted by: Chief Tomahawk | Sep 22, 2008 3:37:23 PM
8 months of an increase in unemployment along w. high energy costs... down we go!
Posted by: bc | Sep 22, 2008 3:38:05 PM
Even With Costly Wall Street Bailout, McCain Still Claims He Will Balance The Budget By 2013
Last night during an interview with John Harwood on CNBC, Sen. John McCain (R-AZ) pledged to stick to his massive tax cuts plan and vow to balance the budget despite the proposed $700 billion federal government bailout of the nation’s largest financial institutions:
HARWOOD: Would you concede, then, that you could not achieve your goal of balancing the budget in your first term with this huge bailout added?
MCCAIN: I believe we can still balance the budget.
No doubt that this guy is looney tunes
McCain/Palin - Unstable/Unable
Posted by: km4 | Sep 22, 2008 3:45:00 PM
The DOW is down almost 400...Now I know one of you boys is over the the corner....secretly shortin'..now fess up before I call Uncle Same...
Posted by: Bruce in Tennessee | Sep 22, 2008 3:47:00 PM
Message from Paulson, Bernanke and Cox:
"Comrades. This is NOT the response we were looking for. You have disappointed us greatly. By Executive Order, thou shall not be able to sell any more securities until further notice."
Posted by: Andy Tabbo | Sep 22, 2008 3:47:38 PM
i suspect that the selling has just about run it's course. we have inflation, afterall. that puts a floor under stock prices even if the shorts can't :(
Posted by: karen | Sep 22, 2008 3:48:03 PM
This is EXACTLY why we all need to be given PONIES in the Fed bailout! We could ride our ponies instead of driving.
Posted by: donna | Sep 22, 2008 3:48:09 PM
DJI is down appx 400 pts. I'm expecting a new bailout plan on top of the old. I'm expecting the FED to announce the new purchases of helicopters and the nationalization of the LEAR Jet corp in order to aid helicopter BEN drop $$$$ across America...... This is the name of the new bailout plan "Dollars Across America".... Homeland Security is confiscating every American's address data in order to accurate drop dollars on citizens homes...... Hyperinflationary REcession/Depression here we come.... Light speed Ben Solo
Posted by: john doe | Sep 22, 2008 3:49:06 PM
Wow.
The ban on short sales has worked out spendidly so far.
(XLF down "only" 8%).
Posted by: DL | Sep 22, 2008 3:52:24 PM
Damn speculators. I see the shorts figured out how to short the financials today despite the ban.
Posted by: me | Sep 22, 2008 3:56:21 PM
