November 1, 2007
Crude Will Hit $100 No Problemo
The target for the hourly long in crude is $99.72 (close enough to $100 for government work).
In related news: China Raises Domestic Prices for Gasoline, Diesel, Jet Fuel
“To ‘guarantee domestic refined oil supply and promote energy conservation,’ gasoline, diesel and jet fuel prices will rise 500 yuan ($67) per metric ton starting today, the National Development and Reform Commission said in a statement posted on its Web site yesterday.”
Doesn’t matter … Beijing’s roads are absolutely clogged, price be damned. I dread taking a taxi today because the cabbie will no doubt be in a foul mood (fouler than usual anyway).
Cat: | Time: 10:45 am (utc+8)
November 1st, 2007 at 10:31 pm
can you explain the basics of how the dollar’s value and the price of oil are correlated? it would make my head feel better!
November 1st, 2007 at 10:51 pm
Beginner: I’m the wrong guy to ask since I’m a dunce, but I know that oil is denominated in dollars so if the dollar is weak then the A-rabs want more of ‘em for the same amount of oil as before (pardon me, I’ve had a hard night of drinking and my head hurts too).
November 2nd, 2007 at 1:59 am
Thanks, I have overheard friends mentioning that the continued rise in the oil prices since the dollar is in a way pegged to oil, has indicated that as the price of oil goes up, the dollars value goes down (rather than the perspective that the dollar falling then leads to the oil price rise). I think I have been pondering if the controlling factor is the oil rising which makes the dollar fall or vise versa.
November 2nd, 2007 at 7:56 am
Not to worry, oils will be fallin soon enough, and the dollar rising.
November 2nd, 2007 at 4:35 pm
i thought that the usd would bounce a bit after the 25p cut…but it seems that the whole world like to see the usd slide along…i wonder who has been taking the other side of this trade, esp in the loonie ??
beginner: you can look at a price chart of gold and oil denominated in EUR and CAD…you will find, that prices there are nowhere that inflated as in the USD
November 2nd, 2007 at 5:34 pm
Peter: No bounce… and the CNY is 7.4566 as I type this.