Time to short oil! Any comments?

NEW YORK (Reuters) - Oil fell $4 to $128 a barrel on Tuesday, pulled down by the stronger U.S. dollar and concerns moves to cut Asian fuel subsidies could hurt demand growth.

U.S. crude traded down $4.01 to $128.18 a barrel in late post settlement trade, after settling down $3.34 at $128.85 in the first day of trade on the New York Mercantile Exchange this week following the U.S. Memorial Day holiday.

London Brent crude settled down $4.06 at $128.31 a barrel.

The losses came as the U.S. dollar rose broadly after April U.S. new-home data showed an unexpected rise, dragging oil off record highs over $135 a barrel struck last week.

Oil price have doubled in the past year as speculators pile into commodities as a hedge against inflation and the weaker dollar, extending a six-year rally as supply struggles to keep pace with rising demand in emerging economies like China.

Prices rose Monday when Royal Dutch Shell said it was forced to cut production in Nigeria after rebels from the southern Niger Delta blew up an oil pipeline.

Further weakness on Tuesday came from signs some Asian countries could ease subsidies that have kept down prices, raising concern demand in the region could falter.

Demand in top consumer the United States is already under pressure from high prices.

"Crude is looking toppy due to very obvious demand destruction in the U.S. and impending demand fall off in Asia," said Nauman Barakat, senior vice president at Macquarie Futures

USA.

Over the past week Indonesia, Taiwan, Sri Lanka and Bangladesh have either raised regulated fuel prices or pledged that they will, forced into unpopular action by the unsustainable cost of subsidies.

The weakness in demand has helped pull down near-term prices against crude futures five years out and beyond, where some analysts are concerned resource management in producer countries could keep supply under pressure.

PRICE PROTESTS

Surging fuel costs have caused a wave of protests across the globe, with convoys of trucks converging on London on Tuesday. French fishermen have blocked road and rail access to the fuel depot of France's largest oil refinery at Gonfreville, owned by Total.

Rising prices have prompted some oil consuming nations to call on OPEC to ramp up production. Members of the cartel insist speculators, not a shortfall in supply, is driving prices and say they will not meet ahead of their scheduled meeting in September to discuss output policy.

I think it will go back up again, down and up a few times before it starts to really go down to stay for any length of time. Gold and silver are down also, but I think they will go back up soon also. Nothing has happened to make any big improvement in  the economy and that is what has driven the prices up to start with.

NOT OVER JUST STARTING  SORRY BUT THE THE WORLD WILL JUST HAVE TO ADJUST $1000.00 A BARREL..HAPPY TRADING BJ $$$$$$$

 Hi Barb,

There is plenty of oil and gold in the world. However, the world demand does not justify the price of oil or the price of gold for that matter. Therefore, I believe commodity prices are driven by speculators. All indicators point to a bubble that will burst soon when the truth comes out. Remember, the "dot com" era, when every analyst was bullish on tech stocks and investors got burned?

Time will tell, but my money is short on commodities! 

Happy trading... 

oil will go higher,because there is no reason for it to come down.  the oil in the ground is worth more   than oil on the mkt. oil cost is based on us $ around the world, but at $132 a bll it only cost about 90 EUROS,  these country don t   care what we pay. oil producers cannot produce enoung suppy at this time  becaue they can not, they are limited but time on the clock. options for one and two yrs out,  are showing oil at 157.oo  and these options are now WORTH A LOT OF MONEY,   so  be ready to see oil go higher and higher.

For now, maybe so.  My understanding is that part (only part, mind you) of the problem is not enough facilities to process the oil in a timely fashion.  I got real confused real fast on this one...  Seems we can produce plenty, but cannot make it usable (did you know that there are at least 3 ways to spell that correctly?) fast enough to keep the prices down ...

And of course Congress has not helped ... if it will help Bush, they will vote it down even when it's good for them, too.  Not fair of me, perhaps, but that is what I see too much of no matter what party is in the White House ... We seldom have people in Congress that will actually vote for our country's good if they think it will help the opposing party.

I should never look at the political posts immediately following a discourse I listened to about why oil is up when demand is not really supporting the price increase.  At least I think that is how it is.

Funny .... people telling you why the market is doing what it is doing seem to be confused, too. 

LOL!!

  I caused the drop in oil prices !

 I never trade in oil stocks, but last week I jumped in and bought some CRED, now I am stuck holding it.

 I am holding it because I do believe oil prices will go up, as we get nearer to the summer travel season and the 4th of July. Interesting how prices have dropped though. Last month the news from Nigeria would have been the talking heads and the traders reasons for pushing the price up and up, today not a thing about it.

Maybe we should all invest in horses and buggies.  I think the Amish have something going for them.

  Oil is NOT just for gas, there are many, many needs for petroleum. It goes into the making of so many things we use every day.

  Petroleum is in everything.

 Time to short, short, short!!!

Happy trading... 

Montana:

  Oil is NOT just for gas, there are many, many needs for petroleum. It goes into the making of so many things we use every day.

  Petroleum is in everything.

 

its definitely up my ass :) 

awolnine i think the term T.M.I. is fitting here    no pun intended    lol

oils gonna go up and not stop