Oil spikes $25 a barrel on anxiety over US bailout

[Newsjock]

Source: Associated Press

Oil prices spiked more than $25 a barrel Monday -- the biggest one-day price jump ever -- as anxiety over the government's $700 billion bailout plan battered the dollar and touched off frenzied buying of safe-haven investments including crude.

Light, sweet crude for October delivery jumped as much as $25.45 to $130 a barrel on the New York Mercantile Exchange before falling back somewhat to trade at $122.60,up $18.05. The contract was set to expire at the end of the day, adding to the volatility; the October price began accelerating sharply in the last hour of regular trading.

The November contract, scheduled to become the front-month contract at the end of Monday's session, was trading at $108.80, up $6.05.

Crude has gained about $40 in a dramatic four-day rally that has at least temporarily halted oil's steep two-month slide below $100. At this rate, crude is within striking distance of its all-time record of $147.27, reached in July.


Read more: http://biz.yahoo.com/ap/080922/oil_prices.html

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Replaced original story that had price up only $10

[NickB79]

1. Time to fill up

Gas was down to $3.48 yesterday. I'm betting it will be back to $3.75 within a week.

[asjr]

4. In my area it was over 4.00 a gallon. Maybe

this was the whole idea in the first place. Damned if we do,damned if we don't.

[radfringe]

2. screwed again... n/t

[Ganja Ninja]

3. We bail them out and the money goes straight to big oil. n/t

[NickB79]

5. It's almost to $119 now

As of 2:15 Eastern. A jump of almost $15 IN ONE DAY!!!

[NickB79]

6. Now it's $127!!!!!

In 7 DAMN MINUTES the price shot up $8/barrel.

It's up $24/barrel in ONE DAMN DAY!!!!

:wow:

[Newsjock]

7. Mission accomplished!

The regime's goal: nothing less than the total financial destruction (and eternal servitude) of the average American.

[amandabeech]

8. Part of the increase was due to short covering, according to CNBC.

What happened is that either speculators or big oil users hedging on price prior to the Big Bailout thought that the price of oil would continue to decline on the October delivery contract which expires today. So they bought shorts on the October contract.

Since Paulson, et al., announced the bailout, the dollar preditably tanked and the stock market went up on the hope that the economy would not come to a grinding halt. That meant the oil would go back up.

The shorts got caught when the price went up and had to make a made rush into the market to cover their positions, pushing the price up.

If the dollar holds relatively steady next week, the price of the November contract may very well drift lower, say towards $105-$110.

[Delphinus]

9. Sh*t!

I can't speak!

[Rockholm]

10. This is complete BULLSHIT.

Say goodbye to our economy. And it is being blamed on the "bailout?" Good freaking god.

[MessiahRp]

11. Gas prices weren't going down even before the oil increased again

When oil had fallen to $96 a barrel gas around my house was still near $4 a gallon. The paper here speculated that gas station owners were keeping the prices inflated to make up some of the profits lost when gas prices were higher and their convenience store sales plummeted.

Rp

[Roland99]

14. Ours stayed high as stations were running out of gas when power was out here for up to a week

after Ike came thru here, over 300,000 lost power.

[dweller]

12. Oil spikes $25 a barrel on anxiety over US bailout

...
The Nymex temporarily halted electronic crude oil trading after prices breached the $10 daily trading limit. Trading resumed seconds later after the daily limit was increased.

The huge rally was poised to shatter crude's previous one-day price jump of $10.75, set June 6.


why the increase in the daily limit?
dp

[whistle]

13. Just more trading swindles at work

[boomerbust]

15. Gold up

$46 oz

[xyouth]

18. I wish, I think you read the ticker wrong

I think the highest gain today was about $35.40. Right now $31.70

[bemildred]

16. So we have panic buying now? nt

[xyouth]

17. This would not be as big as an issue if we would socialize the oil companies.

Why is it that it is ok to socialize failing businesses that will only cost us money.

[kmdemqueen]

19. This is crazy

When the election/ it can't be soom enough for me.

[Festivito]

20. This is HYPE to speed BAILOUT. Oil controlled by same people.

who want us to okay the speedy unwatched bailout.

Gold is not going up that much. Some are exaggerating it. Gold has been up and down, so has oil.

That they are ready with their "highest ever" tells me they are playing games.

[Sheltiemama]

21. Glad I filled up yesterday.

[llmart]

22. You know I never would have believed this.....

but I knew 8 years ago that Dumbya had screwed up everything he had ever touched and I knew he would screw up our country, but honestly, I never thought it would get this bad. This has got to be his crowning screw up of his life. Before it was just a baseball team or Arbusto but you don't get much bigger than screwing up an entire country!

He truly is going to have to hide away in Paraguay after this because there'll be lots of folks who want a piece of him.

[ClarkUSA]

23. Fill up now before tomorrow morning's gas station price hike/market trading

Oil trading was stopped today but tomorrow is another day -- unless they stop it again, which should be interesting.

[wishlist]

24. No gas at most stations in Asheville NC, those open have lines, are $4.20

We have less than 1/2 tank, but are retired and just letting those who must drive to work or essential trips fill up before we get in line later. Hope our crazy situation settles down soon though. At least we can walk or ride a bike to do essential business. We did get our oil tank filled a couple weeks ago when it got down to $4.00 gallon, but I'm afraid heating oil will be back up to $5 a gallon when cold weather hits (is already in 40's at night around here in mtns)

[tama]

25. Just Gustav and Ike

reminding most kindly how fragile the system really is. Kindly meaning that slightly more serious shortages would very soon lead to shortages of food and everything else vital.

[ClarkUSA]

26. Sorry to hear about that!

An Obama Presidency cannot come soon enough.

Good luck on getting through the next few weeks/months.