| Oil price rebounds on Thursday October
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| | speculative bet on oil, natural gas for
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| 5th, 2006 on the news that OPEC will cut
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| | quite some time. We feel that those
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| 1 Million barrels per day production
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| | speculative bet has helped prop up oil
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| effective immediately. Saudi Arabia, the
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| | price in recent past. Further, the
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| largest OPEC oil producer, will reduce
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| | Amaranth blow out clearly shows that
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| its output by 300,000 barrels per day.
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| | commodity price has many speculative
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| Will this production cut help oil price?
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| | excess that can burst anytime.Seventh,
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| OPEC members certainly hope so.In the
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| | natural gas price and other energy
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| short to medium term, I feel that it is a
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| | sources has declined sharply. Energy
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| futile effort. For starters, after a
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| | price will generally go hand in hand. If
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| nearly harmless hurricane season over the
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| | natural gas price has dropped by more
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| summer, winter is predicted to be warmer
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| | than 60% while oil price dropped merely
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| this year. As a result, energy
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| | 25%, it brings us two possibilities.
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| consumption is expected to be less
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| | Either natural gas price will rise while
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| burdening.Secondly, the US crude
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| | oil stays constant, or natural gas price
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| distillate stocks rose by 3.3 Million
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| | will stay constant while oil price will
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| barrels last week. That signals the
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| | drop. With the action of OPEC members to
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| buildup in inventory which is bearish for
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| | hastily cut production immediately, we
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| oil price going forward. Furthermore, the
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| | believe that it is the latter.Eighth,
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| rise of oil price this past year was
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| | technologies has helped companies getting
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| accompanied with rising inventory, which
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| | smarter in locating oil patch. On
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| is puzzling. Therefore, it is about time
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| | September 5th, 2006, Chevron announced
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| that oil price declines, no matter what
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| | that it has successfully discovered oil
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| the inventory figure is. That being said,
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| | in deep Gulf waters that boost US's oil
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| it will take a lot of declining inventory
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| | reserve by 50%. Yes, you heard it right.
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| to help prop up oil price.Thirdly, the
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| | 50% more. While it will need billions of
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| rise of oil price has triggered a new oil
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| | dollars to extract the oil and distribute
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| exploration that would otherwise will not
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| | it, it shows that high price of oil will
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| be funded. This project will bear fruit
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| | stimulate more exploration and deep
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| after five to ten years. It is expected
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| | drilling. Therefore, oil price cannot
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| that the first batch of this new project
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| | rise indefinitely.Ninth, OPEC members are
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| will come online within the next one or
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| | as addicted to oil as we are to our SUV.
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| two years. To recover the huge capital
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| | They need the oil money. Who would
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| expenditure, it will be best for this new
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| | oversee that OPEC members reallly abide
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| oil production field to keep producing
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| | by the production cut? In the past, some
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| oil. That will put pressure on oil price
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| | OPEC members will 'cheat' by
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| further.Fourth, the federal fund interest
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| | overproducing and sell it on the black
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| rate is at 5.25% versus 1.00% several
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| | market. While price has dropped over the
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| years ago. This would scale down
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| | last two month, oil price by historical
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| speculations which we believe has
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| | standards is still quite high.Tenth, one
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| contributed significantly to the rise of
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| | of the culprit for high oil price is
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| oil futures. When you can get 5.25% by
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| | China, where it has been gulping up oil
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| doing nothing, you would be inclined to
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| | for its rapid economic growth. That may
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| not borrow huge and simply put your money
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| | be true, but China's economy has grown in
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| in the bank. Furthermore, the effect of
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| | the double digit each year way before oil
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| interest rate change is felt 9 to 12
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| | price gets this high. We believe that the
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| months ahead. The Federal Reserve started
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| | recent commodity sharp rise has anything
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| lifting its fed fund rate on June 30th
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| | to do with China hosting the Olympics on
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| 2004, until now. Therefore, the effect of
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| | 2008. It built up its infrastructure
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| 5.25% interest rate will still be felt
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| | ahead of the game and as 2007 approaches,
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| around one year from now.Fifth, housing
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| | I believe that the construction is almost
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| market in the United States has slowed
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| | complete and commodity demand will
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| down considerably. Home builders had
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| | slacken in the next year, including
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| reported declining profit expectation in
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| | oil.In the long run, as oil is in limited
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| the midst of severe slowdown in some
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| | supply, its price should rise. However,
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| areas. There are some bold predictions
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| | in the short to medium term, oil price
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| that forecast a double digit decline in
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| | may have taken a breather due to the ten
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| home price until 2009, however, even the
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| | reasons above. All these forces has made
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| most optimistic forecast still foresees a
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| | it extremely difficult for us to be in
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| modest decline in home price. This is a
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| | the bullish mode for oil, at least for
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| picture of a slowing economy, which will
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| | the next twelve months or so.Novice
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| dampen demand for oil.Sixth, natural gas
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| | Investing is the online investing guide
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| blown out by Amaranth hedge fund, showed
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| | for beginners. You can also submit
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| how dangerous speculating in commodity
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| | investing articles here.
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| market is. This will temper down
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