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Welcome to the Connacher Oil and Gas Hub on AGORACOM
Connacher is a growing exploration, development and production company with a focus on producing bitumen and expanding its in-situ oil sands projects located near Fort McMurray, Alberta
Message: Senate OKs $700 B bailout
I hope the oil price can stay at these levels otherwise CLL will go down perhaps to 2 again.
Today I heard on my work and I work in a plant which makes catalyst for refiners and reactors for crude.They say they think demand will be low until 2011 .After then they see a boost again.
So for our sp for CLL the shorters will put pressure on it .I realy don't like the latest bottom now.It was before 2006 we hit that point so a further drop could be, if the rescue plan is not approved by the House of Repres.
This is also a good read and I told before that the oil chart is not in good shape.I heard car sales were very low in the US .Also here Volvo and Opel will stop they night shift and some companies will close their doors.Not such good times ahead.Will take time to see 147 again.
We have no luck ,now that CLL is producing .I'm some pessimistic for short future.Only good point is we are near full production but the reward will be low.
Read this.Now they realize the price was to high.
Oil's back to square one, and back to reality
Financial market's turmoil helps highlight demand destruction
SAN FRANCISCO (MarketWatch) -- The oil market's been hit with a dose of reality in the form of genuine fear over demand destruction -- and prices show it.
Prices on Thursday fell below where they began the year, after ending the month of September with a loss of almost 13% and finishing the third quarter down 28%.
It's been a true gambling experience for traders trying to gauge the world's need for energy during troubled economic times.
Crude futures prices gained about $50 in the first seven months of this year, then lost it all over the course of just two months, dropping to a low of $90.51 a barrel on Sept. 16.
"Oil traded for the last five years on fear of supply interruptions," said James Williams, an economist at WTRG Economics. "It is now trading on fear of economic collapse."
The U.S. financial rescue plan's failure on Monday fueled the worst point drop on record for the Dow industrials. And if anything, that historic day on Wall Street taught oil traders a thing or two about reality.
"In the past, minor supply disruptions caused major price swings" for oil, said Charles Perry, president of energy-consulting firm Perry Management. "But what I see now is the traders in oil futures are looking at supply and demand much more realistically."
There's little of the former "hysteria" left in their estimates of future supply and demand, he said.
Maybe traders' mentality actually began to change back in July when oil futures reached their all-time high above $147 per barrel.
"I think the record high followed by a rapid drop in oil prices caused oil traders to come to a more realistic and conservative view of the price movements," said Perry.
It wasn't that long ago when headlines on major oil-producing countries such as Iran and Iraq caused a big stir in the oil markets.
"Things that would have caused a $10 spike just three months ago seem to go without notice," said Williams, in a recent note to clients.
They seem to have been replaced lately by everything that has to do with the economy -- and consequently oil demand.
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