Crude oil spikes 16% on US banking bailout
Our hopes for a lower fuel price after the Cabinet’s meeting tomorrow could be affected due to this latest development in world crude oil prices. Oil prices soared from a low near US$90 range a barrel last week up to US$120.92 per barrel today for October contract delivery US crude. However, November contract delivery prices settled down at a lower price – US$109.37.
Analysts say this is because of the expiry of the front-month futures contract and the weak US dollar. “The market went crazy here and it looks like the weakness of the dollar was a fuel for the sharp price increase. NYMEX October crude was also expiring and that provoked short-covering,” said an analyst at Summit Energy.
A Bank of Ireland analyst said a key driver of the price hike is the US rescue package for the banking industry, which has apparently changed the sentiment in the oil market.
A bail-out for the US financial sector will mean continued demand for energy in the country, which has the highest consumptions of the commodity at over 25% of total world consumption.
NYMEX – Light Sweet Crude Oil Contract Detail – October 2008
NYMEX – Light Sweet Crude Oil Contract Detail – November 2008
Related Stories: (external sources)
Regulators review huge NYMEX oil price surge – Reuters
Oil prices soar to record one-day gain – Times Online
Oil posts biggest ever 1-day gain – CNN
Oil prices jump, partly from ’short squeeze’
September 23, 2008 @ 12:45 pm
abes laaa,, tak balik raya laa tahun ni… hahaha
September 23, 2008 @ 1:20 pm
Hahaha…I know it’s to good to be true! Dah agak dah….
September 23, 2008 @ 1:29 pm
if every month the crude oil price is fluctuated like this, don’t hope the gov will adjust the retail price. they should adjust accordingly, maybe bi-monthly basis.
If every month end closing is high, mid month is low….haih!!! unless they take average price..
September 23, 2008 @ 1:57 pm
already told u all… tis gov is sucking our blood…other country with no exportation on crude oil is covering their lost while our country gov is making money on us…
September 23, 2008 @ 2:05 pm
We are all doomed!!! Thank you petrol!!!
September 23, 2008 @ 2:10 pm
When want to announce then price go up….
Imagine this… when price go down – we investigate how much should go down. After decided and want to announce…. price hike up… due to that… no announcement.
September 23, 2008 @ 3:11 pm
lol.. wait la for tomorrow announce…
September 23, 2008 @ 3:36 pm
Relax …. deifinitely will be a Raya goodie for all …. maybe not as much as everyone expected …. now our beloved govt will have this “excuse” for them to say we tried our best …. bersabar lar
September 23, 2008 @ 4:44 pm
well,,,, superpower toying with oil.
September 23, 2008 @ 5:54 pm
Yeah, during Raya, the Govt would not announce petrol price increase one….later many people would not balik kampung….susah wor…
September 23, 2008 @ 6:45 pm
I guess they will still lowering it for the sake to win against ours heart. But this amount would be minimal.
September 23, 2008 @ 8:36 pm
I think if the condition is still went up… The most they reduce i think around 5-10 cent only…
So, bad luck for Najib also.. For sure those big cronies wont let him reduce price so fast 1.. See before these few days, even the fuel price drop so fast they also went so quite.. Diam diam ubi, Untung untung duit..
September 24, 2008 @ 1:13 am
It is amazing how people are ignorant on how crude contracts are done. There are reasons why they call it futures and contracts. Nations buy on monthly contracts in bits and pieces and not necessarily daily prices. Stop blaming everything on cronyism.
Right now, fuel price is the least of people worries. The US Congress is deliberating on the release of USD 700bil to bail out of the financial instituitions. If Congress don’t agree, then the whole world will be in recession.
Then we will start to worry if there is enough money for food. I don’t see ANYBODY coming out with a solution. Coz there is no silver bullet. Stop hoping that changing the top guy will help global economic forces. We can only manage to reduce the effect. But recession in almost inevitable. Some so called leader ask why there is no FDI into Malaysia when they bloody know there is a financial crisis. You’d think people want to invest when the future is uncertain? That is dumb.
September 24, 2008 @ 1:55 am
I agree 100% but don’t compound our problems by making money from us.
The rakyat is not silly. We too can make some calculations and it does not add up.
BTW, i did read somewhere that a minister said that the problems in the US will not affect us here in Malaysia.
You must know something more that the minister doesn’t.
September 24, 2008 @ 6:43 am
Pak lah and Khairy will surely smile this time.
September 24, 2008 @ 8:16 am
Don’t be naive, the greater danger is the lurking financial crisis. Oil price seem irrelevant now, actually it is EVERYTHING going roller coaster.
Crude palm oil is taking a hit too down to RM2200++ per ton. So our two biggest income, petroleum and palm oil, is full of uncertainty. And the whole world is pretty much at the mercy of USA.
Seriously, nobody will smile.
September 24, 2008 @ 8:54 am
Hi guys… no need to afraid about the 16% spike. The trader bought back the contract at higher price because the contract expire date is getting near. If they don’t buy back then they are forced to deliver the oil physically.
You may google for the analysis of yesterday oil price spike and see how bad is the reporting media (e.g. bloomberg) reported this spike. Seems to me, their claims and analysis are baseless.
http://www.twonilblankblank.com/2008/09/22/bbc-vs-bloomberg-on-the-25-dollar-oil-spike/
September 24, 2008 @ 9:20 am
country not smiling but those ppl earning money from their ppl r smiling…
September 24, 2008 @ 1:20 pm
YES RIGHT OUR MAJOR CONCERN IS THE WORLD FINANCIAL ISTITUTIONS AND AMERICA’S ECONOMY. ITS NOT PAK LAH OR BLAMING BELOVED WORKHOLIC NAJIB WHO HAS 37 COMMITES TO CHAIR!
ABOUT THE COMITTE YES PAK LAH IS LAZY ASS!
BUT THIS IS THE WORLD CRISIS…
September 24, 2008 @ 1:28 pm
“I quote”
9166 said,
September 24, 2008 @ 1:55 am
You know that all of our official media are controlled by the big “G” right? *wink-wink*. There’s a reason to do so; not to scare away the investors. We are running out of investors. Heard a guy from KLSE says that more than RM100 Billions investment is being pulled out due to the economy uncertainty. Then again, it may be an understatement to convince the ‘rakyat’ everything is okay, no worries. Haha. I wish!
September 24, 2008 @ 1:59 pm
now what i see is.. Gov being stewpid..
Bz with oil price. Economy getting poor and bad. (a little)
Why they just can’t follow on what Mahathir did before?
Stick the price on average price. (with subsidy plus minus)
No need to do all this ‘tiring’ thing!.
Now they had too many works to do..
September 24, 2008 @ 2:23 pm
cant wait untill BN collapse wtf always like tis wait untill when they want to reduce the petrol if not for MR. A today do u think BN will low the price, call wait untill Barisan Nasiaonal collapse my ASS!!!
September 24, 2008 @ 2:24 pm
Sucker BN!!!!!!!!!!!!!!!!!!!!!!!!!!!!!1
September 24, 2008 @ 2:48 pm
news report on mkini says gov may reduce petrol price by 10 cents within next few days. hmm. maybe i should pump quarter tank first and wait.
September 24, 2008 @ 10:10 pm
Yahoo… As what i predicted 10 cent reduce! Tomorrow onward will be RM2.45 for Ron97, diesel RM2.40, ron 92 RM2.30/Liter
Hehe.. So easy to predict BN move.. Thanks for the 10cent candy, yum yum sweet for a moment… but last how long? Now the crude oil in US is going up up again…
September 25, 2008 @ 6:38 pm
us has nothing to do wit malaysia