CNN hiding Oil stats

By Tenpoundbass   follow   Tue, 26 Mar 2013, 4:06am PDT   ↑ Like   ↓ Dislike (1)   254 views   4 comments   Watch (1)   Share   Quote  

Light Crude 95.82 +1.07%

Just a few dollars more, then the whole shooting match will go south again. If Oil gets to $100 DOW will slip back to 13000 or less.

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zzyzzx   befriend (10)   ignore (6)   Tue, 26 Mar 2013, 4:08am PDT   Like   Dislike (1)     Share   Quote   Comment 1

CaptainShuddup says

If Oil gets to $100 DOW will slip back to 13000 or less.

I doubt that.

curious2   befriend (4)   ignore (5)   Tue, 26 Mar 2013, 5:43am PDT   Like   Dislike     Share   Quote   Comment 2

The Dow 30 include huge oil producers Chevron and Exxon Mobil, and other behemoths whose earnings aren't affected by oil prices (e.g. Merck, Pfizer). So, rising oil prices don't necessarily hurt the Dow as much as they hurt the rest of the American economy.

Meanwhile, ZIRP gives free $ to TBTF banks, which increases indirectly the supply of capital available to "invest" in stocks, and QE leaves such "investors" with few choices outside stocks and real estate.

Oil was less than $10/bbl in the 1990s, before SUVs (conspicuous waste) became popular. The fact that it's 10x higher now is a major reason why other industries have cut back on production (e.g. airlines reducing capacity) and the economy is struggling. I don't know if the latest move might be related to current events in Venezuela. Another issue with the oil price is, it can be affected by speculation, and as people fear inflation they pile into commodity ETFs that bid up the price of oil futures, thus making the fear of inflation a self-fulfilling prophecy.

Tenpoundbass   befriend (1)   ignore (21)   Tue, 26 Mar 2013, 5:52am PDT   Like   Dislike (1)     Share   Quote   Comment 3

Not Oil companies, OIL.

Let's see the DOW sustain on the back of Exxon, while every other industry sector is at a grinding halt. I say this every time, and every time, OIL continues to rise, then the stocks slide about 500 to 1000 points before OIL begins to retreat.

I feel like I'm watching a bad foreign movie. And not the new high quality production ones with popular international stars, but the foreign cheesy Noir movies, from the 70's, where as an American child you could tell it really sucks to live anywhere but in America. It even sucked to watch the characters in the movie. That's the foreign Movie I feel like we're stuck in.

We're all hairy and smell of cheap wine and cheese, and drive a car smaller than a broom closet.

Bellingham Bill   befriend (0)   ignore (3)   Tue, 26 Mar 2013, 6:46am PDT   Like   Dislike     Share   Quote   Comment 4

curious2 says

Oil was less than $10/bbl in the 1990s, before SUVs (conspicuous waste) became popular.

North Sea and Alaska were still peaking, and China didn't have trillions of our dollars to spend in the 1990s, either. Though domestic consumption rise didn't help, either.

curious2 says

thus making the fear of inflation a self-fulfilling prophecy.

http://research.stlouisfed.org/fred2/series/OILPRICE

yup, the move from $60 to $130 to $40 was pretty weird . . .

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