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Demeter Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Oct-31-11 06:16 PM
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2. Oil rises 18 pct in October

Oil soared 17.7 percent in October on the expectation that the world's thirst for petroleum would keep growing despite economic struggles in the West. West Texas Intermediate, the benchmark oil in the U.S., jumped from about $79 to $93 per barrel during the month as fears of another U.S. recession subsided while Europe struck a landmark deal to reduce Greece's debt. Demand from emerging markets remains strong. And a strategy calling for traders to buy WTI futures contracts while selling another variety, Brent crude, also boosted the price of WTI. The conditions that fostered the increase remain in place..."Oil demand is higher worldwide," said Tom Kloza, publisher and chief oil analyst at Oil Price Information Service. "Other parts of the world, most notably South America, are consuming a lot of our (petroleum) products."
Independent oil analyst Andrew Lipow expects benchmark oil to hit $100 per barrel by the end of the year. But this has been a year of pronounced swings in the price of oil. WTI hit a high of $113.93 at the end of April, after starting 2011 at around $91 per barrel...On Monday, WTI slipped 13 cents to end the month at $93.19 per barrel while Brent crude gave up 35 cents to $109.56 per barrel in London.

Analysts say a number of factors will influence prices for the next two months and into next year:

  • How much oil will Libya contribute? Oil demand is on track to exceed supply in the second half of 2012 by about 1 million barrels per day. But a return of Libyan oil to the market could fix the shortage. Libya was exporting 1.5 billion barrels of oil daily before the eight-month rebellion that ultimately ousted leader Moammar Gadhafi.

  • Will Europe continue to struggle? Eurozone leaders hammered out an agreement last week to bolster the region's banks. The decision was regarded as a landmark development that put Europe on the path to resolving a lingering credit crisis. However, its banks are still weak, debts are still high, and investors are unsure if it has really turned the corner.

  • More government stimulus in the U.S.? The U.S. economy is growing, but the 2.5 percent growth estimated for the third quarter is hardly a fervid pace. Analysts speculate that the Federal Reserve may try something similar to last year's $600 billion bond-buying program to boost the economy. As a result of that program, the dollar fell and oil surged.

  • Another Arab Spring? Oil traders are keeping a wary eye on unrest in the Middle East. In Syria, for example, protesters have clashed with the government for seven months, leaving an estimated 3,000 people dead. Continuing violence in Syria and other oil-rich nations could hamper world supplies and push prices higher.

Traders continue to be wary of an economic downturn in the West. The Organization for Economic Cooperation and Development said the European economy is headed for a "marked slowdown" next year. Analysts also note that Europe will need to slash spending and cut entitlement programs over the next several years to keep budgets in line, and that will hurt oil demand. China, India and other developing nations are expected to buy whatever oil Europe doesn't use. The U.S. expects daily global oil consumption to average at 88.4 billion barrels this year and 89.8 million barrels next year...While oil has become more expensive this month, gasoline prices have held steady. Gasoline, which is made from crude oil, ended the month at a national retail average of about $3.443 per gallon, according to auto club AAA, Wright Express and Oil Price Information Service. Gasoline prices tend to flatten in the fall as the summer travel season ends and refineries are allowed to start making a cheaper-blend of winter fuel.

It's a different story for heating oil and natural gas. Both are used to heat homes and business, and tend to get more expensive as the weather cools. Heating oil and natural gas futures rose by 9.5 and 7.3 percent, respectively, during October. Prices are likely headed higher in coming months. A nor'easter already blanketed the East Coast over the weekend, knocking out power to 3.1 million customers, and the National Weather Service predicted an especially chilly winter with above average snow and rain. The Energy Information Administration said homeowners will spend 3 percent more for natural gas than they did a year ago. Those who burn heating oil will spend about 8 percent more. About half of U.S. households heat their homes with natural gas, though about 80 percent of homeowners in the Northeast use heating oil...In other energy trading, heating oil slipped 1.63 cents to finish at $3.0429 per gallon and gasoline futures lost 3.93 cents to end at $2.6429 per gallon. Natural gas rose 1.1 cents to finish at $3.934 per 1,000 cubic feet.
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  -Stock Market Watch, Tuesday, November 1, 2011 Demeter  Oct-31-11 05:52 PM   #0 
  - Economic Reports October 31 - November 01  Demeter   Oct-31-11 06:08 PM   #1 
  - Baltic Dry Index falls 2.7% to 1,912 points  Roland99   Nov-01-11 09:01 AM   #56 
  - Chrysler October US vehicle sales up 27% vs. Exp. up 28%  Roland99   Nov-01-11 09:01 AM   #57 
  - U.S. Sept. construction spending up 0.2%, 0.3% expected. Down 1.3% year-over-year  Roland99   Nov-01-11 09:04 AM   #60 
  - ISM manufacturing gauge falls to 50.8% in October. whoops.  Roland99   Nov-01-11 09:10 AM   #63 
     - Anyone notice a certain something about the ISM long-term graph here >>>  Roland99   Nov-01-11 09:51 AM   #74 
        - NOT a pretty picture  Demeter   Nov-01-11 10:51 AM   #83 
           - Going back to 1963, every time the index hit where it is now on the way down, it kept right on going  Roland99   Nov-01-11 11:11 AM   #88 
           - Last time I saw something like that.....  AnneD   Nov-01-11 11:59 AM   #90 
  - Oil rises 18 pct in October  Demeter   Oct-31-11 06:16 PM   #2 
  - Is Goldman Sachs Poised to Takeover Europe? by MIKE WHITNEY  Demeter   Oct-31-11 06:21 PM   #3 
  - Thanks, Demeter  Warpy   Oct-31-11 06:43 PM   #4 
  - I thought he might be without power--it took me a while, though  Demeter   Oct-31-11 06:52 PM   #5 
     - It was over 70 here, bright sunshine, dry as the desert it's supposed to be  Warpy   Oct-31-11 08:25 PM   #11 
     - Mid 80s here, sunny, clear, dry as a bone  Tansy_Gold   Oct-31-11 11:33 PM   #20 
        - Rained steadily all morning yesterday, then cleared in early afternoon  Roland99   Nov-01-11 09:46 AM   #72 
     - Six inches before halloween unheard of?  Po_d Mainiac   Nov-01-11 09:53 AM   #75 
        - Mass/NH border, not Maine!  Demeter   Nov-01-11 03:32 PM   #108 
           - 5 inches is just a dusting, barely. n/t  Po_d Mainiac   Nov-01-11 07:30 PM   #123 
  - OECD urges co-ordination to avoid recession  Demeter   Oct-31-11 06:54 PM   #6 
  - The seven billionth baby: Malthus has not lost the argument yet  Demeter   Oct-31-11 06:55 PM   #7 
  - Japan intervenes to halt yens rise against dollar  Demeter   Oct-31-11 06:56 PM   #8 
  - Thanks for posting this and for filling in  corkhead   Oct-31-11 07:07 PM   #9 
  - Thanks for delurking and welcome!  Demeter   Oct-31-11 07:34 PM   #10 
  - Thanks, Demeter.  westerebus   Oct-31-11 08:29 PM   #12 
  - Now THAT'S Paranoia  Demeter   Oct-31-11 08:34 PM   #14 
  - same thought n/t  zogofzorkon   Oct-31-11 09:18 PM   #17 
  - Schuble calls for EU lead on Tobin tax  Demeter   Oct-31-11 08:31 PM   #13 
  - (And UK should be kicked out of the EU).  Ghost Dog   Oct-31-11 09:21 PM   #18 
     - I thought the UK ....  AnneD   Nov-01-11 12:05 PM   #91 
        - The UK is in the EU but is not in the Eurozone  fedsron2us   Nov-01-11 05:45 PM   #122 
  - Global business leaders to press for G20 unity  Demeter   Oct-31-11 08:36 PM   #15 
  - I'm going to bed, guys  Demeter   Oct-31-11 09:04 PM   #16 
  - Sweet dreams are made of this...  InkAddict   Oct-31-11 09:47 PM   #19 
     - K&R!  hamerfan   Nov-01-11 12:15 AM   #21 
  - Markets dive on Greek referendum  Ghost Dog   Nov-01-11 03:59 AM   #22 
  - Thanks for the update, GhostDog.  Hugin   Nov-01-11 04:08 AM   #23 
  - Democracy up, moneymarkets down... nt  tama   Nov-01-11 07:51 AM   #45 
     - Fingers crossed...  Ghost Dog   Nov-01-11 10:40 AM   #81 
  - Thanks for the SMW, I missed it yesterday morning  DemReadingDU   Nov-01-11 06:10 AM   #24 
  - thanks Miss Demeter -- a bunch -- & i hope it's a good post Halloween morning for all  xchrom   Nov-01-11 06:51 AM   #25 
  - Gold slumps as euro-zone uncertainty lifts dollar  xchrom   Nov-01-11 06:56 AM   #26 
  - What Chinese unemployment?  xchrom   Nov-01-11 07:15 AM   #32 
  - PRECIOUS-Gold eases as Greek vote, MF Global rattle markets  xchrom   Nov-01-11 08:00 AM   #51 
  - asia: Asia stocks weak as resource firms fall  xchrom   Nov-01-11 06:58 AM   # 
  - China manufacturing activity slows amid growth concerns  xchrom   Nov-01-11 07:00 AM   #28 
  - Freeport strike mines a political jungle  xchrom   Nov-01-11 07:17 AM   #33 
  - Australia lowers rate to 4.5% in a bid to boost growth  xchrom   Nov-01-11 07:35 AM   #36 
  - Vietnam reactor deal advances; Japan looks to accept caregivers  xchrom   Nov-01-11 07:47 AM   #42 
  - Noda takes flak in Diet over extra budget, free trade  xchrom   Nov-01-11 07:50 AM   #44 
  - Nikkei slips on downbeat earnings, global jitters  xchrom   Nov-01-11 07:58 AM   #49 
  - Another Chinese city restricts home purchases  xchrom   Nov-01-11 09:04 AM   #59 
  - China's young millionaires set to migrate abroad in big numbers  xchrom   Nov-01-11 09:07 AM   #62 
  - Bank of Japan Losses Exceed $281 Million From Buying ETFs as Stocks Slump  xchrom   Nov-01-11 10:36 AM   #80 
  - NPR Planet Money: Is Europe's Bailout 'A Gigantic Con Game'?  DemReadingDU   Nov-01-11 06:58 AM   #27 
  - Is the Pope Catholic?  Demeter   Nov-01-11 07:35 AM   #37 
  - Does a fish have a watertight asshole?  Tansy_Gold   Nov-01-11 10:09 AM   #77 
     - Well...  AnneD   Nov-01-11 12:38 PM   #94 
        - Which reminds me  Demeter   Nov-01-11 03:36 PM   #111 
           - I guess you have...  AnneD   Nov-01-11 03:43 PM   #114 
  - europe: UK economic growth picks up to 0.5%  xchrom   Nov-01-11 07:02 AM   #29 
  - Bank of Spain forecasts zero growth for the third quarter  xchrom   Nov-01-11 07:21 AM   #35 
  - Italian glitz belies economic despair  xchrom   Nov-01-11 07:38 AM   #38 
  - EU Shocked and Furious at Greek Referendum Plan  xchrom   Nov-01-11 07:40 AM   #39 
  - Angered EU leaders  tama   Nov-01-11 07:53 AM   #47 
  - Warnings Mount against Concessions to China  xchrom   Nov-01-11 07:42 AM   #40 
  - Economy on brink of recession despite Q3 growth  xchrom   Nov-01-11 07:53 AM   #46 
  - Greek referendum spooks European stock markets  xchrom   Nov-01-11 07:55 AM   #48 
  - Italy 10-year government bond yield soars to 6.30%  Roland99   Nov-01-11 09:03 AM   #58 
  - NPR Planet Money: MF Global A U.S. Casualty Of EU's Debt Crisis  DemReadingDU   Nov-01-11 07:10 AM   #30 
  - Hundreds Of Millions Missing From MF Global, 'New York Times' Reports  DemReadingDU   Nov-01-11 07:21 AM   #34 
     - Karl Denninger: there's really nothing more-serious than grabbing client funds internally  DemReadingDU   Nov-01-11 07:48 AM   #43 
        - Is Someone Going To Jail For This?  Ghost Dog   Nov-01-11 10:56 AM   #86 
           - Normally, no one would go to jail for this because  Tansy_Gold   Nov-01-11 02:18 PM   #97 
           - Wow  Demeter   Nov-01-11 03:39 PM   #112 
  - NPR: Greek Referendum Could Jeopardize Bailout Deal  DemReadingDU   Nov-01-11 07:14 AM   #31 
  - Is Greece Doing a "Hail Mary" Iceland?  Demeter   Nov-01-11 03:41 PM   #113 
  - Europes Economy is Falling Apart naked capitalism  Demeter   Nov-01-11 07:46 AM   #41 
  - Futures looking UG-LEE  Roland99   Nov-01-11 07:59 AM   #50 
  - way down, DJIA -232  DemReadingDU   Nov-01-11 08:07 AM   #53 
  - A New Declaration of Independence: 10 Ideas for Taking America Back from the 1%  xchrom   Nov-01-11 08:06 AM   #52 
  - south asia: Sensex closes 215 points lower  xchrom   Nov-01-11 08:09 AM   #54 
  - Indian rupee slides to biggest single session fall in 2 weeks  xchrom   Nov-01-11 09:30 AM   #68 
  - Imported chocolates Ferrero Rocher, Galaxy, Sapphire, Guylian taken big leap this Diwali  xchrom   Nov-01-11 09:33 AM   #69 
  - Basmati to fetch less, prices 15-20% lower this year  xchrom   Nov-01-11 09:37 AM   #70 
  - Greek news updates here >>> (getting juicy)  Roland99   Nov-01-11 08:11 AM   #55 
  - Thanks, ZeroHedge has lots of info too  DemReadingDU   Nov-01-11 09:18 AM   #66 
  - Banks to move ahead with Greek debt deal: IIF  Roland99   Nov-01-11 11:00 AM   #87 
  - I have no hope. I see no future. eom.  Hotler   Nov-01-11 09:06 AM   #61 
  - This is the future  Demeter   Nov-01-11 09:16 AM   #65 
  - We're all in the same boat  DemReadingDU   Nov-01-11 09:24 AM   #67 
     - I sound like a broken record.  Hotler   Nov-01-11 10:24 AM   #79 
  - It's a Global Wiley Coyote Moment!  Demeter   Nov-01-11 09:14 AM   #64 
  - 2nd that for PBD ...  bread_and_roses   Nov-01-11 09:46 AM   #73 
     - Here's Reality Writ Large  Demeter   Nov-01-11 10:48 AM   #82 
        - +1776  Roland99   Nov-01-11 10:52 AM   #84 
        - +1789  Tansy_Gold   Nov-01-11 12:24 PM   #92 
           - :)  Roland99   Nov-01-11 12:32 PM   #93 
              - +1791  Tansy_Gold   Nov-01-11 02:20 PM   #98 
                 - you would be technically correct on both, though, really  Roland99   Nov-01-11 02:40 PM   #101 
        - I love it....  AnneD   Nov-01-11 12:45 PM   #95 
        - +10000000000 - now we just print up about 100,000 to 1 million of these...  txlibdem   Nov-02-11 12:55 AM   #125 
  - The Best U.S. States for Working Women  xchrom   Nov-01-11 09:40 AM   #71 
  - The magic number for the S&P 500 is -2%  Roland99   Nov-01-11 10:05 AM   #76 
  - Ruh roh, Rorge! ... S&P 500 1,218 -35 -2.79%  Roland99   Nov-01-11 03:06 PM   #106 
  - JPMorgan Shuffles Its Capital Markets Leadership  xchrom   Nov-01-11 10:14 AM   #78 
  - 11:53am - DJIA -302  Roland99   Nov-01-11 10:54 AM   #85 
  - U.S. markets plunge to major support  Roland99   Nov-01-11 11:21 AM   #89 
  - Everyone got their Faerie Detectors on?  Roland99   Nov-01-11 02:17 PM   #96 
  - Is that like faydar? nt  Tansy_Gold   Nov-01-11 02:38 PM   #99 
     - heh  Roland99   Nov-01-11 02:39 PM   #100 
     - lol!  DemReadingDU   Nov-01-11 03:34 PM   #110 
     - Or maybe Feydar?  Demeter   Nov-01-11 03:49 PM   #118 
  - Hi everyone!  Pale Blue Dot   Nov-01-11 02:48 PM   #102 
  - nice to hear from ya! glad you didn't get the worst of it.  Roland99   Nov-01-11 02:55 PM   #103 
  - Hello!  DemReadingDU   Nov-01-11 03:34 PM   #109 
  - Back in the Saddle again.....  AnneD   Nov-01-11 03:45 PM   #115 
  - Glad to hear you are okay, PBD!  hamerfan   Nov-01-11 03:45 PM   #116 
  - Whew! Glad to hear you're okay  Demeter   Nov-01-11 03:47 PM   #117 
  - You picked a fine time to leave us, Pale Blue Dot!  girl gone mad   Nov-01-11 04:37 PM   #120 
  - Welcome home!  Tansy_Gold   Nov-01-11 05:37 PM   #121 
  - Going to be closing near the session lows. Guess the Greek referendum skeered the markets again.  Roland99   Nov-01-11 03:01 PM   #105 
     - or Corzine's MF Global admitted to using client cash as its troubles mounted  DemReadingDU   Nov-01-11 03:32 PM   #107 
        - what a scumbag. But that news came out a bit earlier.  Roland99   Nov-01-11 04:07 PM   #119 
           - (H)Opium, that's just too cute for words.  Demeter   Nov-01-11 08:25 PM   #124 

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