Quoted: Quoted: Quoted: Speculation might be some of it... "Speculation" has lead to a $11 increase so far today. Speculation or demand.. and who can really tell the difference..??..

I'm no rocket scientist, but this seems pretty cut and dry to me:

Oil prices shot up nearly $10 to a new record above $137 a barrel Friday after a Morgan Stanley analyst predicted prices could hit $150 by the Fourth of July

Quoted: Quoted: Quoted: Speculation might be some of it... "Speculation" has lead to a $11 increase so far today. Speculation or demand.. and who can really tell the difference..??..

Demand has actually (finally) decreased from what I've heard.

Quoted: Quoted: Quoted: Quoted: Speculation might be some of it... "Speculation" has lead to a $11 increase so far today. Speculation or demand.. and who can really tell the difference..??.. I'm no rocket scientist, but this seems pretty cut and dry to me: Oil prices shot up nearly $10 to a new record above $137 a barrel Friday after a Morgan Stanley analyst predicted prices could hit $150 by the Fourth of July

How many folks did the M-S analyst let know in advance before his 'prediction'?

Quoted: Quoted: Quoted: Quoted: Quoted: Speculation might be some of it... "Speculation" has lead to a $11 increase so far today. Speculation or demand.. and who can really tell the difference..??.. I'm no rocket scientist, but this seems pretty cut and dry to me: Oil prices shot up nearly $10 to a new record above $137 a barrel Friday after a Morgan Stanley analyst predicted prices could hit $150 by the Fourth of July How many folks did the M-S analyst let know in advance before his 'prediction'?

I'm sure some people made quite a bit of pocket change on this jump.

Yeah, the "speculation" is that $139 gas is going to be considered "cheap" pretty soon.

Quoted: Quoted: Quoted: Quoted: Quoted: Speculation might be some of it... "Speculation" has lead to a $11 increase so far today. Speculation or demand.. and who can really tell the difference..??.. I'm no rocket scientist, but this seems pretty cut and dry to me: Oil prices shot up nearly $10 to a new record above $137 a barrel Friday after a Morgan Stanley analyst predicted prices could hit $150 by the Fourth of July How many folks did the M-S analyst let know in advance before his 'prediction'?

Just the ones that bought a bunch of oil at the cheaper mid $120's price I'm sure

Quoted: Speculation might be some of it... but China and India are putting a lot of new cars on their roads every day... the gas and diesel for those cars has to come from somewhere..

Yes, 60 miles off the coast of Florida with Cuba's help.  

Quoted: Quoted: Speculation might be some of it... but China and India are putting a lot of new cars on their roads every day... the gas and diesel for those cars has to come from somewhere.. Yes, 60 miles off the coast of Florida with Cuba's help.

Just pumping the oil americans won't

Quoted: Quoted: Quoted: Quoted: Quoted: Quoted: Speculation might be some of it... "Speculation" has lead to a $11 increase so far today. Speculation or demand.. and who can really tell the difference..??.. I'm no rocket scientist, but this seems pretty cut and dry to me: Oil prices shot up nearly $10 to a new record above $137 a barrel Friday after a Morgan Stanley analyst predicted prices could hit $150 by the Fourth of July How many folks did the M-S analyst let know in advance before his 'prediction'? Just the ones that bought a bunch of oil at the cheaper mid $120's price I'm sure

Soros was talking it down a couple days ago, wanna bet he was betting behind the scenes against his public proclamations? Get the sheep to think the scare is gone, but a TON of calls, then leak the predictions it's going back up...

These cocksuckers did this same thing a week ago!!!!!

www.jobrelatedstuff.com/forums/topic.html?b=1&f=5&t=714652 Oil Rises After Morgan Stanley Says Brent Oil May Reach $150 By Mark Shenk May 28 (Bloomberg) -- Crude oil rose more than $2 a barrel after Morgan Stanley said that Brent oil from the North Sea could ``easily'' reach $150 a barrel. Prices are rising because ``supply constraints are biting against the backdrop of still-strong global demand,'' Richard Berner, co-head of global economics at Morgan Stanley, said in a report today. Oil rose last week after Societe Generale SA and Credit Suisse increased their price outlooks.

Quoted: These cocksuckers did this same thing a week ago!!!!! www.jobrelatedstuff.com/forums/topic.html?b=1&f=5&t=714652 Oil Rises After Morgan Stanley Says Brent Oil May Reach $150 By Mark Shenk May 28 (Bloomberg) -- Crude oil rose more than $2 a barrel after Morgan Stanley said that Brent oil from the North Sea could ``easily'' reach $150 a barrel. Prices are rising because ``supply constraints are biting against the backdrop of still-strong global demand,'' Richard Berner, co-head of global economics at Morgan Stanley, said in a report today. Oil rose last week after Societe Generale SA and Credit Suisse increased their price outlooks.

Let's see...

Let the price fall $10 a barrel...buy when it's cheap.  Artificially inflate the market by "scaring" it with predictions of higher prices on "X" date, then sell all your oil you bought low while the price is high.

Let the price fall by $10 a barrel...rinse and repeat.  Seems like a pretty good way to make some $$$


But I'm sure nobody would do that...ever...not a chance.

Quoted: Quoted: Quoted: Quoted: Quoted: Quoted: Quoted: Speculation might be some of it... "Speculation" has lead to a $11 increase so far today. Speculation or demand.. and who can really tell the difference..??.. I'm no rocket scientist, but this seems pretty cut and dry to me: Oil prices shot up nearly $10 to a new record above $137 a barrel Friday after a Morgan Stanley analyst predicted prices could hit $150 by the Fourth of July How many folks did the M-S analyst let know in advance before his 'prediction'? Just the ones that bought a bunch of oil at the cheaper mid $120's price I'm sure Soros was talking it down a couple days ago, wanna bet he was betting behind the scenes against his public proclamations? Get the sheep to think the scare is gone, but a TON of calls, then leak the predictions it's going back up...

I believe Soros has another motive.  He keeps saying prices should be $60/barrel.  He does this so he can claim that Bush and his "big oil" buddies are keeping the prices higher than they should be.  While he probably is right, he is actually doing it to hurt the Republicans in the upcoming election.

Quoted: Quoted: Quoted: Quoted: Speculation might be some of it... "Speculation" has lead to a $11 increase so far today. Speculation or demand.. and who can really tell the difference..??.. Demand has actually (finally) decreased from what I've heard.

Not in India and China..  

Let's hope cuba doesn't suddenly become de-castro'ised and start driving up demand for oil..

Out with the old.........





In with the new..........

Demand decreased slightly in the USA, but the increases in China and india more then made up for it.

Quoted: Demand has actually (finally) decreased from what I've heard.

Was talking to a coworker the other day who drives a diesel truck.  Drove from his house to the beach, hung out for a few hours and drove home. Fuel for the trip cost him $48.00

Quoted: Quoted: Quoted: Quoted: Quoted: Quoted: Quoted: Quoted: Speculation might be some of it... "Speculation" has lead to a $11 increase so far today. Speculation or demand.. and who can really tell the difference..??.. I'm no rocket scientist, but this seems pretty cut and dry to me: Oil prices shot up nearly $10 to a new record above $137 a barrel Friday after a Morgan Stanley analyst predicted prices could hit $150 by the Fourth of July How many folks did the M-S analyst let know in advance before his 'prediction'? Just the ones that bought a bunch of oil at the cheaper mid $120's price I'm sure Soros was talking it down a couple days ago, wanna bet he was betting behind the scenes against his public proclamations? Get the sheep to think the scare is gone, but a TON of calls, then leak the predictions it's going back up... I believe Soros has another motive.  He keeps saying prices should be $60/barrel.  He does this so he can claim that Bush and his "big oil" buddies are keeping the prices higher than they should be.  While he probably is right, he is actually doing it to hurt the Republicans in the upcoming election.

Remember.. the Democrats control congress.. they will take a beating over gas prices and the economy.. Since they took control in 2006 all they've done is hold show trials over the fired prosecutors and baseball players using steroids..  

Quoted: Quoted: Quoted: Quoted: Quoted: Quoted: Quoted: Quoted: Quoted: Speculation might be some of it... "Speculation" has lead to a $11 increase so far today. Speculation or demand.. and who can really tell the difference..??.. I'm no rocket scientist, but this seems pretty cut and dry to me: Oil prices shot up nearly $10 to a new record above $137 a barrel Friday after a Morgan Stanley analyst predicted prices could hit $150 by the Fourth of July How many folks did the M-S analyst let know in advance before his 'prediction'? Just the ones that bought a bunch of oil at the cheaper mid $120's price I'm sure Soros was talking it down a couple days ago, wanna bet he was betting behind the scenes against his public proclamations? Get the sheep to think the scare is gone, but a TON of calls, then leak the predictions it's going back up... I believe Soros has another motive.  He keeps saying prices should be $60/barrel.  He does this so he can claim that Bush and his "big oil" buddies are keeping the prices higher than they should be.  While he probably is right, he is actually doing it to hurt the Republicans in the upcoming election. Remember.. the Democrats control congress.. they will take a beating over gas prices and the economy.. Since they took control in 2006 all they've done is hold show trials over the fired prosecutors and baseball players using steroids..

No they won't.  Most people are too stupid to realize this.  The Democrats will do a good job of convincing the American people that it is the Republican's fault.

Yeah this is starting to go nuts all because one person farts in the wind then Oil goes up.  Did not use to do this.

I am all for market practices but this is really getting out of hand in my book but I do not know much.

My Velero Stock did not do well today.

Quoted: Quoted: Quoted: Quoted: Quoted: Quoted: Quoted: Quoted: Quoted: Speculation might be some of it... "Speculation" has lead to a $11 increase so far today. Speculation or demand.. and who can really tell the difference..??.. I'm no rocket scientist, but this seems pretty cut and dry to me: Oil prices shot up nearly $10 to a new record above $137 a barrel Friday after a Morgan Stanley analyst predicted prices could hit $150 by the Fourth of July How many folks did the M-S analyst let know in advance before his 'prediction'? Just the ones that bought a bunch of oil at the cheaper mid $120's price I'm sure Soros was talking it down a couple days ago, wanna bet he was betting behind the scenes against his public proclamations? Get the sheep to think the scare is gone, but a TON of calls, then leak the predictions it's going back up... I believe Soros has another motive.  He keeps saying prices should be $60/barrel.  He does this so he can claim that Bush and his "big oil" buddies are keeping the prices higher than they should be.  While he probably is right, he is actually doing it to hurt the Republicans in the upcoming election. Remember.. the Democrats control congress.. they will take a beating over gas prices and the economy.. Since they took control in 2006 all they've done is hold show trials over the fired prosecutors and baseball players using steroids..

And thank god for that.  They're fairly harmless when they're not trying to "fix" something important.

Quoted: Quoted: Quoted: Quoted: Quoted: Quoted: Quoted: Quoted: Quoted: Speculation might be some of it... "Speculation" has lead to a $11 increase so far today. Speculation or demand.. and who can really tell the difference..??.. I'm no rocket scientist, but this seems pretty cut and dry to me: Oil prices shot up nearly $10 to a new record above $137 a barrel Friday after a Morgan Stanley analyst predicted prices could hit $150 by the Fourth of July How many folks did the M-S analyst let know in advance before his 'prediction'? Just the ones that bought a bunch of oil at the cheaper mid $120's price I'm sure Soros was talking it down a couple days ago, wanna bet he was betting behind the scenes against his public proclamations? Get the sheep to think the scare is gone, but a TON of calls, then leak the predictions it's going back up... I believe Soros has another motive.  He keeps saying prices should be $60/barrel.  He does this so he can claim that Bush and his "big oil" buddies are keeping the prices higher than they should be.  While he probably is right, he is actually doing it to hurt the Republicans in the upcoming election. Remember.. the Democrats control congress.. they will take a beating over gas prices and the economy.. Since they took control in 2006 all they've done is hold show trials over the fired prosecutors and baseball players using steroids..

Don't forget they raised minimum wage.

Instead of buying gun stuff I should buy stocks they are going to be cheap here soon and I want to make money to pay for my gas.

Quoted: Quoted: Quoted: Quoted: Quoted: Quoted: Quoted: Quoted: Quoted: Quoted: Speculation might be some of it... "Speculation" has lead to a $11 increase so far today. Speculation or demand.. and who can really tell the difference..??.. I'm no rocket scientist, but this seems pretty cut and dry to me: Oil prices shot up nearly $10 to a new record above $137 a barrel Friday after a Morgan Stanley analyst predicted prices could hit $150 by the Fourth of July How many folks did the M-S analyst let know in advance before his 'prediction'? Just the ones that bought a bunch of oil at the cheaper mid $120's price I'm sure Soros was talking it down a couple days ago, wanna bet he was betting behind the scenes against his public proclamations? Get the sheep to think the scare is gone, but a TON of calls, then leak the predictions it's going back up... I believe Soros has another motive.  He keeps saying prices should be $60/barrel.  He does this so he can claim that Bush and his "big oil" buddies are keeping the prices higher than they should be.  While he probably is right, he is actually doing it to hurt the Republicans in the upcoming election. Remember.. the Democrats control congress.. they will take a beating over gas prices and the economy.. Since they took control in 2006 all they've done is hold show trials over the fired prosecutors and baseball players using steroids..   No they won't.  Most people are too stupid to realize this.  The Democrats will do a good job of convincing the American people that it is the Republican's fault.

I hope Americans really aren't that stupid..    .  but.. like you.. I read arfcom everyday..  and I realize that it might just be possible that they are that stupid..

A few months ago, when gas was $3.25, I watched Bush in a press conference.

A reporter asked: "With gas reported to be headed for $4.00 a gallon......."

Bush looked visibly shocked.....like..

He interrupted, saying "Did you say $4.00 a gallon? Where did you here THAT?"

Reporter replied: "On the front page of the New York Times."

Bush went again and said "Orly, I hadn't heard that."


Yes, it's scary that our POTUS is that naive and out of touch.


We are so Fooked.  

where is  the gun rack? I had a conversation with the person next to me while getting gas and I said " I'm afraid we may someday look back to $4 a gal. as a good price" I've been seeing more bikes on my way to work. I have co workers spending 100 a week for fuel, and living in the northeast ,I'm not looking forward to oil prices this winter.

Quoted: I have co workers spending 100 a week for fuel, and living in the northeast ,I'm not looking forward to oil prices this winter.

     I can't imagine the strain its going to put on the peoples budget who live in the northeast and heat with fuel oil.

Quoted: Years ago there was a member here named Peak_Oil who broke the news about peak oil to ARFCOM. He was all Gloom and Doom. He was laughed at, ridiculed and driven from the site. I imagine he is still here under a different screen name. I assume he is gloating from his bunker.

We tried to tell you. But nooo, we're just being chicken little's.

Simple fact is, some of us have been watching and studying this shit for YEARS. But you get those hard headed people who look at some issue for 5 minutes or read 1 little article4 and suddenly their a fucking expert on it.

Yeah, some of us knew this shit was coming a long time ago.

Wanna know what?

You aint seen NOTHING yet. This, whats happening now?? This is like the trailers before the main show.

But dont mind us crazy peak oil conspiracy idiots. We dun know nuthin, nope. Jess gotta drill a bit more ya no? theres being oil fer another century right under a few seals asses...



EDIT

I will add, this has gained speed far faster then I thought it would. It seems as if we didnt start to go up a hill in prices, but rather ran into a cliff. Interesting to watch.

Quoted: Quoted: Quoted: Quoted: Speculation might be some of it... "Speculation" has lead to a $11 increase so far today. Speculation or demand.. and who can really tell the difference..??.. I'm no rocket scientist, but this seems pretty cut and dry to me: Oil prices shot up nearly $10 to a new record above $137 a barrel Friday after a Morgan Stanley analyst predicted prices could hit $150 by the Fourth of July img503.imageshack.us/img503/5362/ssje2.jpg

It's called a self fulfilling prophecy.  Who are the two largest US institutions investing in oil?

The only people I know it's hurting are ones that 1 don't own their vehicles and 2 lived outside of their means before.  

Now they are f'd

Quoted: The only people I know it's hurting are ones that 1 don't own their vehicles and 2 lived outside of their means before.   Now they are f'd

Yup.

When Starbucks goes out of business because no one is eating there, then I'll be worry.  Until then, all of the whining sounds like: "Boohoo!  The more I spend on fuel, the less I can spend on Starbucks, PS3, booze, smokes, guns, ammo, porterhouse, and Botox."

As I've said, my IRA is loving these high oil prices.

Quoted: Quoted: Quoted: And in other news, Kuwaitis are enjoying their freedom (thanks to Americans) and are filling up their tanks at well below $1.00/gallon AND their oil barons are getting rich off of American oil purchases. We should have let Kuwait and Saudi get what was coming to them. Maybe, but the fact is, we didn't. Americans went over there and liberated them so that in thanks they could rape us at the pumps.

Oh sweet mother of the gods, the market doesn't work that way.

Quoted: Everything is fine.  I have been assured oil will go back down to $60 or so a barrel within a year or so by the 'economists" on arfcom.

Does $11 in two days sound like it was driven by a genuine increase in demand to you? It should be the text book definition of "bubble."

Quoted: Quoted: I have co workers spending 100 a week for fuel, and living in the northeast ,I'm not looking forward to oil prices this winter.      I can't imagine the strain its going to put on the peoples budget who live in the northeast and heat with fuel oil.

It went past strain  a long time ago for the average person .

Quoted: Speculation might be some of it... but China and India are putting a lot of new cars on their roads every day... the gas and diesel for those cars has to come from somewhere..

India has pulled back on their government subsidies of gasoline, so demand from India, and Malaysia and some other countries, should take a down-turn soon.

China continues to subsidize gas. I wonder which will happen first, China realizes that a command economy doesn't work or the oil bubble bursts. I know which one China is betting on at this point.

Oil isn't only for fuel...

air conditioners
ammonia
anti-histamines
antiseptics
artificial turf
asphalt
aspirin
balloons
bandages
boats
bottles
bras
bubble gum
butane
cameras
candles
car batteries
car bodies
carpet
cassette tapes
caulking
cds
chewing gum
combs/brushes
computers
contacts
cortisone
crayons
cream
denture adhesives
deodorant
detergents
dice
dishwashing liquid
dresses
dryers
electric blankets
electrician’s tape
fertilizers
fishing lures
fishing rods
floor wax
footballs
glues
glycerin
golf balls
guitar strings
hair
hair coloring
hair curlers
hearing aids
heart valves
heating oil
house paint
ice chests
ink
insect repellent
insulation
jet fuel
life jackets
linoleum
lip balm
lipstick
loudspeakers
medicines
mops
motor oil
motorcycle helmets
movie film
nail polish
oil filters
paddles
paint brushes
paints
parachutes
paraffin
pens
perfumes
petroleum jelly
plastic chairs
plastic cups
plastic forks
plastic wrap
plastics
plywood adhesives
refrigerators
roller-skate wheels
roofing paper
rubber bands
rubber boots
rubber cement
rubbish bags
running shoes
saccharine
seals
shirts (non-cotton)
shoe polish
shoes
shower curtains
solvents
spectacles
stereos
sweaters
table tennis balls
tape recorders
telephones
tennis rackets
thermos
tights
toilet seats
toners
toothpaste
transparencies
transparent tape
tv cabinets
typewriter/computer ribbons
tires
umbrellas
upholstery
vaporizers
vitamin capsules
volleyballs
water pipes
water skis
wax
wax paper

Quoted: Quoted: Everything is fine.  I have been assured oil will go back down to $60 or so a barrel within a year or so by the 'economists" on arfcom. Does $11 in two days sound like it was driven by a genuine increase in demand to you? It should be the text book definition of "bubble."

No doubt some of it is speculation but the fact that the dollar is so devalued and Europe signaling it's not going to lower rates simple can not be over looked.

Quoted: Quoted: Quoted: Everything is fine.  I have been assured oil will go back down to $60 or so a barrel within a year or so by the 'economists" on arfcom. Does $11 in two days sound like it was driven by a genuine increase in demand to you? It should be the text book definition of "bubble." No doubt some of it is speculation but the fact that the dollar is so devalued and Europe signaling it's not going to lower rates simple can not be over looked.

If you look you will see that futures are trading almost $15 over the spot price.  The market is truly unhinged with institutional money.    

Quoted: Quoted: Years ago there was a member here named Peak_Oil who broke the news about peak oil to ARFCOM. He was all Gloom and Doom. He was laughed at, ridiculed and driven from the site. I imagine he is still here under a different screen name. I assume he is gloating from his bunker. We tried to tell you. But nooo, we're just being chicken little's. Simple fact is, some of us have been watching and studying this shit for YEARS. But you get those hard headed people who look at some issue for 5 minutes or read 1 little article4 and suddenly their a fucking expert on it. Yeah, some of us knew this shit was coming a long time ago. Wanna know what? You aint seen NOTHING yet. This, whats happening now?? This is like the trailers before the main show. But dont mind us crazy peak oil conspiracy idiots. We dun know nuthin, nope. Jess gotta drill a bit more ya no? theres being oil fer another century right under a few seals asses... EDIT I will add, this has gained speed far faster then I thought it would. It seems as if we didnt start to go up a hill in prices, but rather ran into a cliff. Interesting to watch.

Oh, believe me those threads by Peak_Oil got my attention. I have been studying this for years as well.

But I am not a "Gloom and Doomer" . I stay away from web sites like "The Oil Drum" that are gloom and doom echo chambers.

I believe the current crisis is mostly a "Bubble". But it is a warning of the end of cheap, easy oil.

The free market will work. Alternatives are being found. We will adjust. It will be very painful for some. No more McMansions and Hummers.

2 web sites to keep up with what's happening:

www.greencarcongress.com/

www.ecogeek.org/

Quoted: Americans went over there and liberated them so that in thanks they could rape us at the pumps.

We are raping ourselves. This situation was predictable long ago, but those who did make the predictions were laughed at. Was it that big of a leap to predict that India and china would have growing economies that would drive up the demand for oil? Did anyone really think that we had a bottomless well of oil?

Our failure to have a viable energy policy for the last 20 years has landed us where we are.  We could be a world leader in energy technology today, but instead we are the bitch of every oil producing country.

While congress and the president spent the last 20 years either ignoring the problem or arguing about which half-ass solution we should pursue, the forces which have lead us to where we were steadily driving on.

We're fucked.

Quoted: Speculation might be some of it... but China and India are putting a lot of new cars on their roads every day... the gas and diesel for those cars has to come from somewhere..

how are the chinese and indians affording 4.50 a gallon of gas when many are earning .43 cents an hour?

Quoted: We're fucked.

Just wait till McCain or Obama start intervening with new government programs.

Quoted: Nothing is wrong, everything is fine, go take an economics class.

In 1930, the Republican-controlled House of Representatives, in an effort to alleviate the effects of the... Anyone? Anyone?... the Great Depression, passed the... Anyone? Anyone? The tariff bill? The Hawley-Smoot Tariff Act? Which, anyone? Raised or lowered?... raised tariffs, in an effort to collect more revenue for the federal government. Did it work? Anyone? Anyone know the effects? It did not work, and the United States sank deeper into the Great Depression. Today we have a similar debate over this. Anyone know what this is? Class? Anyone? Anyone? Anyone seen this before? The Laffer Curve. Anyone know what this says? It says that at this point on the revenue curve, you will get exactly the same amount of revenue as at this point. This is very controversial. Does anyone know what Vice President Bush called this in 1980? Anyone? Something-d-o-o economics. "Voodoo" economics.

Oil zooms nearly 9 percent higher to record $139
Fri Jun 6, 2008 4:25pm EDT  Email | Print | Share| Reprints | Single Page|

NEW YORK (Reuters) - Oil jumped nearly 9 percent to a record $139 a barrel on Friday, extending a two-day rally to more than $16 as the slumping U.S. dollar and mounting tensions between Israel and Iran attracted a stampede of buyers.

Oil prices could top $150 by July 4, one of the busiest U.S. travel holidays, as strong demand in Asia triggers a slowdown in shipments of crude to the United States, investment bank Morgan Stanley said.

"We are calling for a short-term spike in oil prices," the bank said in a research note.

U.S. crude settled up $10.75 at $138.54 a barrel before touching an all-time high of $139.12 in its biggest gain in dollar terms on record, adding to a rise of $5.49 on Thursday. London Brent crude settled $10.15 higher at $137.69, off the record $138.12 hit earlier.

"It's eye-popping. It's absolutely stunning," said Chris Feltin, analyst at Tristone CapitaL Inc in Calgary.

Oil has risen 44 percent this year, threatening economic growth in major consumer countries including the United States, whose economy already is hobbled by a housing crisis.

Analysts have said the dramatic rally in oil prices is due to rising demand in China and other developing economies as well as an influx of cash from investors seeking a hedge against the weaker dollar and inflation.

The greenback extended weakness against other currencies Friday on data showing the U.S. economy lost jobs for the fifth straight month and the unemployment rate shot up to its highest in more than three years.

The drop in the dollar added to losses from Thursday when European Central Bank President Jean-Claude Trichet said a number of policymakers wanted higher interest rates, possibly as soon as next month.

"Obviously there's a lot of concern on the economic impacts of a weakening U.S. dollar. That seems to be driving some of the momentum here today," said Feltin.

Further support came from remarks by Israel's transport minister that an attack on Iran's nuclear sites looked "unavoidable." It was the most explicit threat yet against Tehran from Prime Minister Ehud Olmert's government.

Worries of a potential disruption of the OPEC member's crude supply have helped support prices over the past year.

"We've had a huge historic rally on little fundamental input, other than the weakness of the dollar and the news this morning out of Israel that seems to have pushed some geopolitical risk premium back in the market," said Jim Ritterbusch, president of Ritterbusch & Associates in Galena, Illinois.

BULLISH BANKS

Morgan Stanley forecast the diversion of Middle East oil shipments away from the United States to Asian markets could push U.S. crude to $150 a barrel by the U.S. July 4th holiday.

"Middle East oil exports are stable, but Asia is taking an unprecedented share," Morgan Stanley said in a report, adding U.S. inventories have dropped by 35 million barrels since March.

"Robust Asian non-OECD demand growth, coupled with a stagnant global oil supply backdrop, appears to be pricing out Atlantic basin consumers while at the same time driving Atlantic inventories to critically low levels."

The report added to a string of upward price forecast revisions by analysts, with Goldman Sachs in May predicting prices could tip $200 a barrel within the next two years.

A six-year rally in oil has sent prices up six-fold as demand from emerging economies such as China and India strain supplies.

High prices have started to eat away at global growth however, with some consumers such as the United States and the United Kingdom showing signs of lowering consumption.

Some Asian governments -- including India -- have decided to cut fuel subsidies, stirring concern rising prices could cut further into demand.

The International Energy Agency (IEA), an adviser to 27 industrialized countries, said it may cut its 2008 demand growth projection further after having already more than halved it to 1.03 million barrels per day (bpd).
http://www.reuters.com/article/wtMostRead/idUSREE06478120080606?sp=true

As Buffett said derivatives are financial WMD's.

I would like to see the US become as imperialistic as the left thinks we are so we could just go and take all the oil we want without paying for it.........

Quoted: Quoted: Nothing is wrong, everything is fine, go take an economics class. In 1930, the Republican-controlled House of Representatives, in an effort to alleviate the effects of the... Anyone? Anyone?... the Great Depression, passed the... Anyone? Anyone? The tariff bill? The Hawley-Smoot Tariff Act? Which, anyone? Raised or lowered?... raised tariffs, in an effort to collect more revenue for the federal government. Did it work? Anyone? Anyone know the effects? It did not work, and the United States sank deeper into the Great Depression. Today we have a similar debate over this. Anyone know what this is? Class? Anyone? Anyone? Anyone seen this before? The Laffer Curve. Anyone know what this says? It says that at this point on the revenue curve, you will get exactly the same amount of revenue as at this point. This is very controversial. Does anyone know what Vice President Bush called this in 1980? Anyone? Something-d-o-o economics. "Voodoo" economics.

Lieberman / Warner ........

Quoted: Quoted: Everything is fine.  I have been assured oil will go back down to $60 or so a barrel within a year or so by the 'economists" on arfcom. Does $11 in two days sound like it was driven by a genuine increase in demand to you? It should be the text book definition of "bubble."

A-fucking-Men

Supply/demand/Peak Oil my ass

Quoted: Quoted: Quoted: Speculation might be some of it... "Speculation" has lead to a $11 increase so far today. Speculation or demand.. and who can really tell the difference..??..

I highly doubt 11,000,000 Chinese and Indians just got new V8 SUV's during the day to cause the $11 spike in prices...it's not demand that's causing this rise...it is PURE speculative trading..oil should be taken OFF the futures/commodity market PERIOD.