Oil Surges Past $60, Chinese Trying To Buyout Unocal

[Bronco_Beerslug]

All time record $60.06 then fell back some. The Chinese are growing faster than the world can produce oil which is a real problem. They have outbid Chevron by 1.5 billion for Unocal. Ironically, Chinese law would never allow a U.S company to buy a Chinese oil company since they are government owned for the most part.

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Dow Plunges 166 As Oil Surges Past $60


By MICHAEL J. MARTINEZ, AP Business Writer 3 minutes ago

NEW YORK - Stocks plunged Thursday as oil prices briefly moved past $60 per barrel for the first time, accelerating a selloff prompted by poor earnings from FedEx Corp. — which blamed high fuel prices for its disappointing profits. The Dow Jones industrials plunged 166 points.

FedEx's earnings missed Wall Street's expectations and raised new concerns about oil's impact on corporate profits. That led crude oil futures to creep higher through the day, breaking through the $60-per-barrel barrier. While purely psychological, that move was enough to send stocks tumbling.

A barrel of light crude settled at $59.42, up $1.33, on the New York Mercantile Exchange after peaking at $60.05, an intraday record.

"We always wondered what $60 a barrel oil would cost us, and now we know," said Jeff Kleintop, chief investment strategist for PNC Financial Services Group in Philadelphia. "On top of that, you've got news from FedEx, a transportation company, saying, 'Yeah, oil is hurting us.' That's got the market shaken up a bit."

According to preliminary calculations, the Dow Jones industrial average fell 166.49, or 1.57 percent, to 10,421.44.

Broader stock indicators also lost substantial ground. The Nasdaq composite index dropped 21.37, or 1.02 percent, to 2,070.66. The Standard & Poor's 500 index was down 13.15, or 1.08 percent, at 1,200.73.
http://news.yahoo.com/news?tmpl=story&cid=543&e=6&u=/ap/20050623/ap_on_bi_st_ma_re/wall_street

Chinese Oil Firm Bids for Unocal


By James F. Peltz, Elizabeth Douglass and Evelyn Iritani Times Staff Writers Thu Jun 23, 7:55 AM ET

A major Chinese oil company made a landmark offer to buy California-based Unocal Corp. for $18.5 billion on Wednesday, topping a bid by rival U.S. oil giant Chevron Corp. and setting the stage for an intense political debate over the future of U.S. energy, security and trade policies.
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The unsolicited offer by CNOOC Ltd., an arm of state-owned China National Offshore Oil Corp., was the most dramatic example yet of China's growing influence in global markets and would be China's largest foreign acquisition by far.

The proposed buyout could raise hackles in the United States, which is heavily dependent on foreign oil. China's fast-growing economy is consuming ever-larger amounts of crude, which is helping to drive the price to record heights on world markets, and CNOOC wants to add Unocal's assets to its energy reserves.

Fu Chengyu, CNOOC's chairman and chief executive, said his company's $67-a-share cash bid "is a good offer for Unocal" and "it is good for America."
http://news.yahoo.com/s/latimests/chineseoilfirmbidsforunocal;_ylt=AorNxtb2gooyPxDIP Whi73Zv24cA;_ylu=X3oDMTA3bGI2aDNqBHNlYwM3NDk-

[Kaylore]

I've been saying this hera nd everywhere else. There are 1 BILLION chinese, most of who are needing transportation. Oil is going to go up up up, and it will ultimately be a blessing because now you will see a REAL demand for alternative fuel sources.

[yavoon]

I've been saying this hera nd everywhere else. There are 1 BILLION chinese, most of who are needing transportation. Oil is going to go up up up, and it will ultimately be a blessing because now you will see a REAL demand for alternative fuel sources.


as much as a giant recession and decreased standard of living is a blessing yes I agree, we will atleast need to build more nuclear power plants.

[Atlas]

You Know what's funny(or not so funny) With The U.S.'s huge deficit, we have to now borrow money from the Chinese to keep our country running. This is the samething that happened in the 80's when Japan owned almost the whole country. This is very dangerous. Bush has to start being fiscally responsible..err.. well i guess he doesn't but the next President is going to have a mess on his hands.

[Boogerboots]

I've never seen so many red herrings before in my life. It's like every little excuse from, an oil rig shutting down for a few days because of a storm, to some guy lighting his own fart, is just cause to raise the price of gas. I call bull$hat!!

This has conspiracy written all over it. I know people that work with Petro Canada and they say it only costs them 3 bucks to draw a barrel of oil from Hibernia just off Newfoundland. So where does this 3 dollar a barrel jump to 60?? In the hysteria driven commodities market, where nonsense makes money. Ever notice how their profit margins have increased over the past few years.

Just like most other sectors whether it's insurance companies to banks, they have come to know one word very well..... COLLUSION. There is no such thing as a competitive market anymore.

And I don't buy into this China affect. They have been making garbage manufacturing products for decades. And we are only noticing they they use oil now?? Come on people, we are being duped big time.

[Atlas]

I've never seen so many red herrings before in my life. It's like every little excuse from, an oil rig shutting down for a few days because of a storm, to some guy lighting his own fart, is just cause to raise the price of gas. I call bull$hat!!

This has conspiracy written all over it. I know people that work with Petro Canada and they say it only costs them 3 bucks to draw a barrel of oil from Hibernia just off Newfoundland. So where does this 3 dollar a barrel jump to 60?? In the hysteria driven commodities market, where nonsense makes money. Ever notice how their profit margins have increased over the past few years.

Just like most other sectors whether it's insurance companies to banks, they have come to know one word very well..... COLLUSION. There is no such thing as a competitive market anymore.

And I don't buy into this China affect. They have been making garbage manufacturing products for decades. And we are only noticing they they use oil now?? Come on people, we are being duped big time.

China and India both are using more gas than ever before but I must agree with you the Oil companies have never made as much money as they are now.

[L.A. BRONCOS FAN]

...but I must agree with you the Oil companies have never made as much money as they are now.

But hey - those record profits are gonna trickle down to us little people any day now, right?

http://www.bartcop.com/lyin-king-orange.gif

[Bronco_Beerslug]

I've never seen so many red herrings before in my life. It's like every little excuse from, an oil rig shutting down for a few days because of a storm, to some guy lighting his own fart, is just cause to raise the price of gas. I call bull$hat!!



More and more analysts are saying the same thing. The world is pumping out oil as fast as it's possible (peak production has probably been reached). But
China and India and other Asian countries are growing so fast that the demand for oil won't be able to be met in the near future.
China knows this and is building multiple refineries that can refine low-grade crude (that's all that will be left eventually). Really no conspiracy here just supply and demand issues.

[Rascal]

Surged past 60???

Anyway, my main concern is the unocal buy out. If Chinese laws don't allow us to buy their companies then we sure as hell shouldn't allow them to buy out ours. **** em.

[Bronco_Beerslug]

Surged past 60???

Anyway, my main concern is the unocal buy out. If Chinese laws don't allow us to buy their companies then we sure as hell shouldn't allow them to buy out ours. **** em.
Edged past $60 is more accurate :) Lots of talk about what protectionism will do to this country on CNBC yesterday (a lot of people saying it will send us into a recession).

[Rascal]

I'm not an economics guru, but I fail to see how protectionism from Chinese companies would lead to a recession. All I'm asking for is a fair shake, if they don't pony up then fine we can play dirty too. Prevent them from buying companies and put on a tarriff and increase the pressure to unpeg the yuan. It might not be enough to turn the tide, but it would help.

[Boogerboots]

China and India both are using more gas than ever before but I must agree with you the Oil companies have never made as much money as they are now.

I still think the gas consumption issue in India and China is an overblown issue. They have been bandying about in clunkers for decades and now at least they are getting newer more fuel efficient vehicles. So to me I think the tradeoff results in slight gains in gas consumption. As for heating fuel, the drain has always been there.

On the second point, here's an interesting link.

http://news.yahoo.com/s/cpress/20050623/ca_pr_on_bu/oil_prices

Still, with all these factors in the mix, brokers said Thursday's rally was not sparked by any significant loss of supply or sign of a demand surge.

"It's mostly due to speculation," said Mike Fitzpatrick, a broker at Fimat USA in New York. "I don't see the fundamental support for these prices."

Gasoline futures climbed by 4.42 cents to $1.6567 per gallon on Nymex, where heating oil futures rose by 5.30 cents to $1.6756 per gallon.

In London, Brent crude climbed $1.38 to settle at $57.96 a barrel on the International Petroleum Exchange.

The majority of the world's leaders believe that this is a non-issue and sit idly by. Meanwhile the masses take it up the arse with the high prices coupled by fuel surcharges and taxes. That leaves both politicans and their buddies in the oil industry very well padded in their wallets.

It pisses me off to no end. :gripe:

[Rascal]

Looks like our voices were heard. Keep the pressure up guys.

http://money.cnn.com/2005/06/23/news/economy/greenspan_china/index.htm

Like I said in another thread I've contacted Graham, Schumer, and my local senator. We have to do something about this. I think the bill sponsored by Graham and Schumer is an excellent start, but I think we prevent chinese takeover of US companies until we can buy out theirs. Not to mention increasing the pressure to unpeg the Yuan.

[RaiderH8r]

I still think the gas consumption issue in India and China is an overblown issue. They have been bandying about in clunkers for decades and now at least they are getting newer more fuel efficient vehicles. So to me I think the tradeoff results in slight gains in gas consumption. As for heating fuel, the drain has always been there.

On the second point, here's an interesting link.

http://news.yahoo.com/s/cpress/20050623/ca_pr_on_bu/oil_prices



The majority of the world's leaders believe that this is a non-issue and sit idly by. Meanwhile the masses take it up the arse with the high prices coupled by fuel surcharges and taxes. That leaves both politicans and their buddies in the oil industry very well padded in their wallets.

It pisses me off to no end. :gripe:
China and India are buying up shares of future production. They've leveraged Canada's production as well as Brazil. Keep an eye on when petroleum drops to around $50/bbl, China and India immediately buy to beat the band and drive up the cost. China doesn't have market forces to worry about, they're communists. Add to that they don't mess about with emissions standards, gas quality, oil quality etc and they lower their costs of refinement. Their refining tech is similar to the US circa 1955, with none of the emissions protections that help to drive up production costs here. The Chinese also get the benefit of giving away energy supply to business sectors where they deem the Gov. can achieve the most benefit. And to say their labor costs are minimal is an overstatement.

[Bronco_Beerslug]

Looks like our voices were heard. Keep the pressure up guys.

http://money.cnn.com/2005/06/23/news/economy/greenspan_china/index.htm

Like I said in another thread I've contacted Graham, Schumer, and my local senator. We have to do something about this. I think the bill sponsored by Graham and Schumer is an excellent start, but I think we prevent chinese takeover of US companies until we can buy out theirs. Not to mention increasing the pressure to unpeg the Yuan.
I'm still listening to both sides debate protectionism so I haven't made up my mind yet. The markets are tanking on talk of congressional controls on trade.
It's possible that just talking about restricting free trade made prompt China to loosen their currency.

[Bronco_Beerslug]

Surged past 60???


I had this right in the first place :)
Dow loses 290 points in 2 days on oil and protectionism news.

Crude oil futures were up 42 cents at $59.84 per barrel on the New York Mercantile Exchange, coming one day after oil prices surged past the $60 per barrel level for a new intraday high.
http://news.yahoo.com/news?tmpl=story&cid=543&e=9&u=/ap/20050624/ap_on_bi_st_ma_re/wall_street

[Rascal]

lucky bastard :)

[Rascal]

I'm still listening to both sides debate protectionism so I haven't made up my mind yet. The markets are tanking on talk of congressional controls on trade.
It's possible that just talking about restricting free trade made prompt China to loosen their currency.


I haven't been able to watch TV lately so I'm not current with what they are saying.