After hitting a 5-month high above $84 a barrel, oil prices today dropped as investors looked at supply and demand rather than only the collapsing U.S. dollar.
That's not to say the weakening U.S. dollar isn't a factor, just that it's not the sole factor in oil price movements. No matter how weak the dollar is, consumers still must buy gas and oil in order to push prices up to high levels.
This is how it's going to go for some time into the future, not just for oil prices, but for commodity prices in general. Those moved by supply and demand, coupled with the drop in value of the U.S. dollar will do very well for some time.
After reaching $84.43 today, crude oil pulled back for November delivery to below $83. As of 1431 GMT, it stood at $82.83.
The push and pull of supply and demand versus the falling U.S. dollar will have oil and commodities performing in this manner going forward, as the market looks for a balance between the two.
In the short term at least, it is expected that oil prices will pull back more.
Showing posts with label Crude Oil Futures Trading. Show all posts
Showing posts with label Crude Oil Futures Trading. Show all posts
Thursday, October 7, 2010
Thursday, June 10, 2010
Crude Oil Futures Trading: Anadarko (NYSE:APC), Transocean (NYSE:RIG), Halliburton (NYSE:HAL), Cameron (NYSE:CAM), BP (NYSE:BP)
After seeing oil shares drop so sharply yesterday, todays crude oil futures trading prices have seen an increase in not only BP (NYSE:BP), but also Anadarko (NYSE:APC),
Transocean (NYSE:RIG), Halliburton (NYSE:HAL), and Cameron (NYSE:CAM). This extreme drop, which was BP's lowest since at least 1972, was said to be caused by the fear of the impending financial doom of the full scale of BP's fuel spill and the possibility of BP filing bankruptcy.
Today, investors were buying as quickly as they were selling yesterday. This gave BP a boost as well as oil stock prices across the board. Raymond James analyst Alex Morris said, "there was a lot of fear in the market yesterday, people maybe have slept on it and are getting a little less scared of the stock. People might just be thinking that yesterdays sell off was overblown and premature."
BP climbed almost 8 percent to $31.50, reaching the high of the day at $33.04.
Anadarko Petroleum rose 8.6 percent to $37.84, this was also after a huge loss on Wednesday of 19 percent. Anadarko is a minority share holder in the Macondo well.
Transocean was up to 4.5 percent to $44.52, there loss yesterday was 8.1 percent.
Halliburton dropped only 2 percent on Wednesday, but today saw a 5 percent rise to $23.72. Cameron was up 4.4 percent to $35.62.
Transocean (NYSE:RIG), Halliburton (NYSE:HAL), and Cameron (NYSE:CAM). This extreme drop, which was BP's lowest since at least 1972, was said to be caused by the fear of the impending financial doom of the full scale of BP's fuel spill and the possibility of BP filing bankruptcy.
Today, investors were buying as quickly as they were selling yesterday. This gave BP a boost as well as oil stock prices across the board. Raymond James analyst Alex Morris said, "there was a lot of fear in the market yesterday, people maybe have slept on it and are getting a little less scared of the stock. People might just be thinking that yesterdays sell off was overblown and premature."
BP climbed almost 8 percent to $31.50, reaching the high of the day at $33.04.
Anadarko Petroleum rose 8.6 percent to $37.84, this was also after a huge loss on Wednesday of 19 percent. Anadarko is a minority share holder in the Macondo well.
Transocean was up to 4.5 percent to $44.52, there loss yesterday was 8.1 percent.
Halliburton dropped only 2 percent on Wednesday, but today saw a 5 percent rise to $23.72. Cameron was up 4.4 percent to $35.62.
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