Oil Climbs More Than $6 in Biggest Three-Day Rally Since 1998

[Purveyor]

Source: Bloomberg

Sept. 19 (Bloomberg) -- Crude oil rose, capping the biggest three-day rally in almost a decade, on speculation government measures to resolve the bank crisis will spur the economy and bolster petroleum demand.

Oil climbed 6.8 percent today and stock markets surged after U.S. Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben S. Bernanke said they're making plans to halt the credit-market seizure. Output disruptions from hurricanes in the U.S. and attacks in Nigeria have constrained oil supplies.

``There's a bullish lean to the market, and that will remain until the imports and inventories start to pick up,'' said Michael Lynch, president of Strategic Energy & Economic Research in Winchester, Massachusetts.

The October crude oil contract expires Sept. 22, and traders were buying oil to cover so-called short positions, or bets that the price will fall, said Phil Flynn, senior trader at Alaron Trading Corp. in Chicago.

``People were waiting to cover shorts at the last minute because, really, if the Fed didn't bail us out on oil today, people could have waited until Monday,'' he said. ``We went from ultimate fear to euphoria overnight.''

Read more: http://www.bloomberg.com/apps/news?pid=20601082&sid=aaswm9WZCJfc&refer=canada

[marmar]

1. That just shows you what f**king idiots speculators are.....

..... This action will have NO impact on the economy, because it will have NO impact on everyday people, who have NO money!!!

That just shows how completely detached from reality they are.....

[OakCliffDem]

4. The gravy train is rolling and the Republicans in the oil business are cashing in

[Ian David]

2. Oh, crap. And I almost bought heating oil this morning. n/t

[kimmerspixelated]

3. What this is, is the last rise of foreplay B4 the main SCREWING

of the American people. These bastards will stop at nothing, because they have no remorse! They are going to rape us as long as possible, keeping their friends, the fat cats fed until the very bitter end!!!! BUT...their goose really is cooked, and Obama is sure to win, unless we can't (by then) afford to drive to vote!

[TheFarseer]

5. I'm taking this opportunity

to liquidate any stock holdings I have that are up from where I bought them, and I think alot of people are of the same mind. Next week will be rough, I think. I'm hoping for a sucker's rally Monday morning so I can finish the job.