Oil futures surpass $90 a barrel (Suburban anyone?)

Page 1 of 2  
Detroit is in trouble-again with the wrong product mix
Oil futures surpass $90 a barrel http://news.yahoo.com/s/ap/20071018/ap_on_bi_ge/oil_prices ;_ylt=AruHFnuAVqfG6j2nA3x8eKSs0NUE
NEW YORK - Oil prices surpassed $90 a barrel for the first time Thursday as the falling dollar drew new foreign investors and speculators to dollar-denominated energy futures.
Light, sweet crude for November delivery hit $90.02 in electronic trading Thursday evening before returning to around $89.60. Earlier, prices had risen $2.07 to settle at a record $89.47 on the New York Mercantile Exchange.
While oil prices have risen sharply in dollar terms in recent days, the steadily weakening dollar means oil futures are seen as a bargain overseas. Data released in recent weeks shows speculative buying of oil futures is on the rise. Buying by foreign investors sends prices up, which draws more speculators into the market.
"It becomes a self-fulfilling prophecy," said Brad Samples, commodities analyst at Summit Energy Services Inc. in Louisville, Ky.
Many analysts feel that the underlying fundamentals of supply and demand do not support oil prices of $90 a barrel. On Wednesday, the Energy Department reported that oil and gasoline supplies rose more than expected last week, countering suggestions that supplies are tight.
"Fundamental reasons, we're kind of running out of them," said James Cordier, president of Liberty Trading Group in Tampa, Fla. "The main driving factor today is ... the dollar making an all-time low against the euro," he said.
However, crude supplies at the closely watched Nymex delivery point of Cushing, Okla., fell last week. And several reports in recent days have predicted oil supplies will tighten in the fourth quarter.
Thursday was the fifth day in a row crude prices have set new records. Despite the gains, the price of oil is still below inflation-adjusted highs hit in early 1980. Depending on the adjustment, a $38 barrel of oil in 1980 would be worth $96 to $101 or more today.
November gasoline rose 3.85 cents to settle at $2.1851 a gallon, while Nymex heating oil futures rose 3.04 cents to settle at $2.3493 a gallon.
November natural gas futures fell 8.4 cents to settle at $7.374 per 1,000 cubic feet as investors shrugged off an Energy Department report that inventories rose by 39 billion cubic feet last week, less than analysts had expected. Supplies are high by historical standards.
In London, December Brent crude rose $1.47 to settle at $84.60 a barrel on the ICE Futures exchange.
At the pump, gas prices are finally beginning to follow oil futures higher. The national average price of a gallon of gas rose 1.9 cents overnight to $2.795, according to AAA and the Oil Price Information Service. Many analysts think prices will move even higher in coming days if oil prices don't retreat.
Some analysts think oil prices are nearing a seasonal peak and will soon begin to fall.
"It's hard to pick a top in a raging bull market, but it's possible that we are close," said Phil Flynn, an analyst at Alaron Trading Group in Chicago in a research note.
And if prices start to fall, they could fall quickly as speculators sell to lock in profits.
"We don't think industry fundamentals support oil prices near $60 (a barrel), let alone $90, but with excessive speculation and lack of government scrutiny, prices could go even higher, before they crash, eventually, in our view," said Fadel Gheit, an analyst at Oppenheimer & Co., in a research note.
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
on Thursday 18 October 2007 07:31 pm, someone posing as Jim Higgins took a rock and etched into the cave:

You know, all this talk about gas...
...since my dad died a month back, I've been driving his "economical" '99 Sebring, with a 2.5L V6. (Mistubishi engine).
I figured I'd get way better mileage than my 5.3L V8 on my Avalanche.
In fact, on the way back from Oregon to Los Angeles, I got about 25MPG in the car. (That's about 1000 miles.)
However, driving it to and from work, which is a mix of freeway and streets for 21 miles each way, I get 18MPG.
On my "gas guzzling" Avalanche, I've averaged 17MPG over the past year doing the same route.
Um....?
--
www.perfectreign.com

Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
wrote:

With the latest trends half of them are SUVs or pickup trucks.
If each of them burns an extra gallon of gas per day.....
Suddenly we're talking real numbers.
<rj>
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
on Thursday 18 October 2007 10:44 pm, someone posing as RJ took a rock and etched into the cave:

But at least we're comfortable.
(Actually, my wife's SUV - a Saturn VUE - is quite small. It also gets roughly 25MPG around town. We've never taken it on a trip.)
--
www.perfectreign.com

Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

from Honda, for thr Vue but I stand corrected, I don't have all the facts and figures!!>

Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
on Friday 19 October 2007 09:26 am, someone posing as Bumpy took a rock and etched into the cave:

Nope - you're correct. Honda didn't (or doesn't) make a diesel engine (to power those Civics with the 'powered by Chevy' stickers) so they swapped some number of duramax engines for the same number of 3.5L V6 engines. (These are the ones in the Pilot/MDX and the Odessy.)
Her Saturn has the V6. Supposedly the engine is fine (even with a timing belt) but I'm a bit concerned about the tranny. I know it fails often on the Odessy minivans. Of course those weigh a bit more than her Vue.
Now, if I can get a Duramax to put in the Vue...
--
www.perfectreign.com

Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
I would rather push a Suburban than ride in one of those tiny rice burners. One accident and all the gas saved does not matter or compare to your or your families health.

Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
Our import buying friends forget GM offers more cars that get 30 MPG or more than does ANY import brand, and that most domestic full size trucks use less fuel than import brands.
They will reply that imports sell midget cars that get better mileage, but even import brand buyers do not buy those cars in any great numbers. When the do it is as a second or third vehicle.
Toyota and Hondas best selling vehicles are not midget or even small cars, they are midsize cars. Import brand manufacturers Americans prefer large saver vehicles. That is why the vehicles they sell the most of have gotten bigger and bigger every year for the past ten years or more.
Toyotas newest full-size truck is even BIGGER than some domestic trucks. The sales of the Tundra however are minuscule, compared to the sales figures for domestic trucks
mike

Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
Chevy Man wrote:

At least your preference for pushing a Suburban is ecologically sound-no pollution and lots of exercise but your deoderant bill will be way up there. Completely impractical but that is your choice.
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
Do you mean DEODORANT? : )

Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
Chevy Man wrote:

Yes! Cosmic ray, the phase of the Moon and Space Aliens conspired to force me to spell that incorrectly. <BLUSH>
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
Wife's WONDERFUL PT cruiser ( 2004) managed to achieve 18 mpg overall......got out of the lease for that leather-lined metallic gray mechanical A**hole and got a 2004 Impala. Much more comfortable, does 24 mpg in town and a bit over 30 on the highway..... also rides/handles like a Real car..... Chrysler historically stinks in gas mileage. I was not impressed with needing 4 tires And a $360 4 wheel alignment after 24k miles, either

Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
Why do some believe that people that can afford 40K or 50K to buy the type of vehicle they need and want will worry too much about the price of fuel. The fact is Americans are buying more gas today a $3 than when it was only $1 a gallon. ;)
mike

Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
on Tuesday 30 October 2007 10:41 am, someone posing as Mike Hunter took a rock and etched into the cave:

Bingo!
--
www.perfectreign.com

Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
Buy a old car and make no car payment of $400 a month or more and you can afford the gas!! Unless you save more than that on the difference in gas mileage. LOL.

Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
Mike Hunter wrote:

Big difference between "need" and "want". Too many want a big, macho man truck as opposed to contractors who really do need a big truck. Macho Man will be paying through the nose for gas and monthly payments.
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
on Tuesday 30 October 2007 02:01 pm, someone posing as Jim Higgins took a rock and etched into the cave:

I think y'all missed my point.
I have the big "macho man truck" and it gets almost as good gas mileage as the subcompact Sebring.
I don't see the problem.
--
www.perfectreign.com

Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
Most contractors I see just ride around with a cell phone in their ear and a cup of coffee in their other hand. Nothing in the back of the truck and noone inside but them. Usually a 4 door dually !!!!

Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
on Wednesday 31 October 2007 04:22 am, someone posing as Chevy Man took a rock and etched into the cave:

Don't think I'd ever drive a dually unless I was towing a fifth wheel. (And then it would *have* to be a diesel.)
Those things are a bitch to park at the Quik-E-Mart. :P
--
www.perfectreign.com

Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

We got a Ford F-250 4WD at work 3 months ago. It is a good truck for what it has to do, including snow plowing. I've driven it a total of 2 miles so far. It is a PITA getting in and out of it so I just take my car if I have an errand to do. No way would I want that as my every day driver.
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

Related Threads

    Motorsforum.com is a website by car enthusiasts for car enthusiasts. It is not affiliated with any of the car or spare part manufacturers or car dealers discussed here. All logos and trade names are the property of their respective owners.