10/17 - Oil Futures Spike To $89 - November Contract Closes At $87.40 - Bloomberg

[hatrack]

Oct. 17 (Bloomberg) -- Crude oil was little changed after rising to a record $89 a barrel in New York on the vote by Turkish lawmakers allowing the use of military force against Kurdish rebels in northern Iraq.

The assembly in Turkey's capital of Ankara backed the motion by 507 votes to 19, Parliament Speaker Koksal Toptan told lawmakers. An Energy Department report today showed that U.S. oil, gasoline and heating-oil supplies rose last week.

``The Turkish vote has scared traders,'' said Rick Mueller, an analyst with Energy Security Analysis Inc. in Wakefield, Massachusetts. ``The doomsday scenario is that things will spiral out of control and lead neighboring countries like Iran and Saudi Arabia to become involved. This isn't likely but it encourages people to be long oil.'' Longs are bets prices will rise.

Crude oil for November delivery fell 21 cents to settle at $87.40 a barrel at 2:52 p.m. on the New York Mercantile Exchange. Futures reached $89, the highest since the contract was introduced in 1983. Prices are up 48 percent from a year ago. Prices rose the previous six days.

EDIT

http://www.bloomberg.com/apps/news?pid=20601012&sid=aWVV.oHGAZPk&refer=commodities

[nightrider767]

1. Traders are like chickens

Always looking for any excuse to run in fear. I mean what, we got a year before we'd see any real interruptions in oil and we already got people diving into ditches...

[Nihil]

6. True

> we got a year before we'd see any real interruptions in oil and
> we already got people diving into ditches...

I'd be happier if we had traders diving out of windows but that's just me ...

:evilgrin:

[hogwyld]

2. It's not just the fear of Turkey in all this

It's the growing realization that global production is dropping like a rock and that pesky supply/demand thingy...

[hatrack]

3. Damn you, Market Forces!!

DAMN YOU!!!!

:evilgrin:

[Javaman]

4. the force is strong in this one. nt

[nightrider767]

5. Look for oil to fall

It'll go up in the long run. But for now, once the tensions fade, in a day or two, look for profit takers to cash out.

[GliderGuider]

7. Yeah, all the way back to $85.00 ...