Why is oil rising to $100 per barrel bad for investors?

[Atheist-Lite]

High oil prices are bad for the economy in the short to medium term - higher prices, less consumption, less profit, less production, less employment - so it's bad for all investors except for the few that invested in oil.

For example, oil is a raw material for tires, so Goodyear is down 2% today because they fact higher costs. Exxon is up 2% because higher oil prices mean their reserves are worth more.

Oil should be traded in a weaker currency like the Euro or something?

[Clinton Huxley]

Whaling ships could be a smart long term investment.

[Atheist-Lite]

Whaling ships could be a smart long term investment.

In the long term after the malthusian die-off we're just heading into whale numbers should recover. That's a excellent idea if a little premature at this stage.

[Clinton Huxley]

Whaling ships could be a smart long term investment.

In the long term after the malthusian die-off we're just heading into whale numbers should recover. That's a excellent idea if a little premature at this stage.

I'm playing the long game.

[cowiz]

Used to be £50 to fill my car, now it's £70. Oil ain't ever coming back down in price. Maybe this will be the spur for someone to come up with battery tech that isn't crap.

...but it doesn't matter, because as soon as enough folks are driving around on top of giant cell phone batteries, there will be a correllation found between driving electric cars and some form of cancer....

Bum cancer

[Coito ergo sum]

Whaling ships could be a smart long term investment.

In the long term after the malthusian die-off we're just heading into whale numbers should recover. That's a excellent idea if a little premature at this stage.

I'm playing the long game.

The problem with the long term is that we're all dead.

[Clinton Huxley]

Whaling ships could be a smart long term investment.

In the long term after the malthusian die-off we're just heading into whale numbers should recover. That's a excellent idea if a little premature at this stage.

I'm playing the long game.

The problem with the long term is that we're all dead.

So far...

[cowiz]

Whaling ships could be a smart long term investment.

In the long term after the malthusian die-off we're just heading into whale numbers should recover. That's a excellent idea if a little premature at this stage.

Malthus was too optimistic in my view.

[Atheist-Lite]

Whaling ships could be a smart long term investment.

In the long term after the malthusian die-off we're just heading into whale numbers should recover. That's a excellent idea if a little premature at this stage.

Malthus was too optimistic in my view.

He didn't think about the oil and if he had he'd have been more famous now.

[Feck]

Does anyone know what percentage of the oil price is made up to fund the profits of the markets ? (at lot more than you think) does anyone have a valid reason why a profit should be made by fuckers in starched shirts GAMBLING on the future price of a commodity ? No thought not !

Supply and demand has been suborned to market traders they own nothing ,they make nothing But profits if a company looses they win if it does good they win and the golden rule is never never use your own money ,They should all fuck off to PKR and take money off each other at poker and not be gambling the lives of other people for their parasite 10%

[Atheist-Lite]

Does anyone know what percentage of the oil price is made up to fund the profits of the markets ? (at lot more than you think) does anyone have a valid reason why a profit should be made by fuckers in starched shirts GAMBLING on the future price of a commodity ? No thought not !

Supply and demand has been suborned to market traders they own nothing ,they make nothing But profits if a company looses they win if it does good they win and the golden rule is never never use your own money ,They should all fuck off to PKR and take money off each other at poker and not be gambling the lives of other people for their parasite 10%

The alternative is a very unstable situation.

[Atheist-Lite]

Some profit gouging masked by Saudi bullwire taking the price lower before another push in the next couple of weeks?

http://www.bbc.co.uk/news/business-12575147

Oil prices have retreated from Thursday's multi-year highs amid optimism that crude producers can offset any drop in supply caused by the unrest in Libya.

Brent crude was trading at $112.65 a barrel, after almost breaking through the $120 mark on Thursday.

US light crude was at $97.49 a barrel. It surged past $100 on Thursday.

Asian stock indexes gained with analysts saying they were now more optimistic about global growth.

Singapore's STI stock index and Hong Kong's Hang Seng saw increases of more than 1%.

Stock markets in South Korea, Japan and Taiwan also gained.

(continued)

[JimC]

Simple, I would have thought. As oil prices go up, so do the prices of consumer goods that depend on transport (almost all of them). At the same time, cosumers, forced to pay more for transport, have less funds available for discretionary purchases of the said consumer goods, which will affect the bottom line of many companies...

[Atheist-Lite]

It's all go. The bottom line is they've lost all control of the economic plane and their trying to calm the passengers panic whilst they also plan the best way to ditch the global ecomomy.

[Hermit]

Simple, I would have thought. As oil prices go up, so do the prices of consumer goods that depend on transport (almost all of them). At the same time, cosumers, forced to pay more for transport, have less funds available for discretionary purchases of the said consumer goods, which will affect the bottom line of many companies...

I think Coito was talking about investors in the oil industry.

Your take on the situation would make sense if it resulted in a shortage of customers. I think - at least in the medium term - it's a shortage of supplies that will be the key factor. If so, it does not really matter to the owners, traders and speculators what a barrel of oil costs. Cheap or dear, what matters is the margin they can add to their own cost price when they sell the stuff. Occasional hiccups notwithstanding, it's been thus since the oil cartel was formed in 1972. Economists call the condition "a seller's market".