Comments on: Commodities "Dramatic Secular Reversal" Coming? (And Qatar Says Oil Markets "Oversupplied")

By: mxq

mxq — Tue, 01 Jul 2008 22:22:00 +0000

btw...Brazil's Lula says that the cost of drilling oil does not reach $35bbl.

IMO, marginal cost is one of two data points where oil prices can be argued.

The other, obviously, being the highly contentious supply/demand equilibrium data point.

By: Anonymous

Anonymous — Tue, 01 Jul 2008 02:39:00 +0000

Sy Krass said…

There is no way commodities or the dollar are going to reverse. The FED is making it very clear we are going the road of hyperinflation. Why? To protect the investment bankers I guess.

By: Mara

Mara — Mon, 30 Jun 2008 23:06:00 +0000

If I were an OPEC nation, the US would go off my client list immediately if there were a suit. Nei ho ma, Beijing, need some more oil? I don’t understand the legal basis for the suit in any case. If they’re suing them because they’re a cartel, they’re about 35 years late for that. Geez, it’s even in their name. If you’re a bellicose, retard lawyer, you always have a future in congress. If anything there should be legal action taken against the oil bourses in NY and London who actually set the price and take a fat margin. They are the ones not adding value to the transaction.

I’m glad to see slippage on the other commodity prices, tho I think the bit about gold going lower is indeed, someone ‘talking their book’.

By: Anonymous

Anonymous — Mon, 30 Jun 2008 22:19:00 +0000

Yeah right, As long as the US of Assholes continues to debase it’s currency to prop up asset prices it doesn’t matter.

By: Lune

Lune — Mon, 30 Jun 2008 22:04:00 +0000

I’m with Anon 5:25 here. Gold is a little different from other commodities in that most “investors” in gold (as opposed to consumers) use it to hedge against inflation. As long as inflation risks are high, gold will probably stay high. But I do hope they’re right about the other commodities.

By: Anonymous

Anonymous — Mon, 30 Jun 2008 21:25:00 +0000

Amazing. Everything said about gold is only true if investment demand is discounted. India and jewellery demand may be down, but demand is certainly not! These guys are talking their own book.

By: Melancholy Korean

Melancholy Korean — Mon, 30 Jun 2008 20:30:00 +0000

I agree about commodities being “overbought,” but there’s no way you could pay me to trade that market these days. A little too crazy.

As for oil, why exactly are we threatening to sue OPEC? To look like we are doing something, ok, I understand that logic. But we have no leverage here, right? Do we? Am I missing something? I mean, I studied ancient Greek in school, and not business, so maybe I don’t get it, but something about this negotiating tactic doesn’t seem quite right.