ProShares UltraShort Oil and Gas (DUG)

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DIG/DUG
as of 9/30/08 Top 10 Index Companies1 Weight
Exxon Mobil Corp. 27.94%
Chevron Corp. 11.74%
ConocoPhillips 7.14%
Schlumberger Ltd. 6.45%
Occidental Petroleum Corp. 4.01%
Devon Energy Corp. 2.65%
Apache Corp. 2.41%
Transocean Inc. 2.40%
Halliburton Co. 1.98%
Marathon Oil Corp. 1.96%

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DUG has 27 percent of its fund in XOM

http://www.proshares.com/funds/dug.html?Index

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http://www.proshares.com/funds/dug.html?Index

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Oil falls below $54 ahead of OPEC meeting
Friday November 28, 7:02 am ET
By Pablo Gorondi, Associated Press Writer
Oil falls below $54 as gloomy demand outlook overshadows possible OPEC output cut


Oil prices fell below $54 a barrel Friday as a gloomy outlook for global crude demand overshadowed expectations that OPEC might announce a production cut this weekend.
By midday in Europe, light, sweet crude for January delivery was down 88 cents to $53.56 a barrel in electronic trading on the New York Mercantile Exchange. Trading was closed Thursday in the U.S. for the Thanksgiving holiday.

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In London, January Brent crude fell 28 cents to $52.85 on the ICE Futures exchange.

Oil prices have fluctuated between $50 and $55 this week, pausing after a fall of over 60 percent since reaching a record $147.27 in mid-July.

Grim economic data this week pointing to a severe recession in the U.S. in the fourth quarter and signs of growth slowing around the world have kept prices from rebounding further.

"The drop-off in demand is going to continue," said Jonathan Kornafel, Asia director at market maker Hudson Capital Energy in Singapore. "There's no reason for the market to rally."

Oil will likely trade below $50 a barrel and could test the $40 level by the end of the year, Kornafel said.

Investors will be watching whether the Organization of Petroleum Exporting Countries reduces output quotas at an informal meeting Saturday in Cairo. Venezuelan Oil Minister Rafael Ramirez on Wednesday called on OPEC to cut production by 1 million barrels a day.

OPEC Secretary-General Abdullah al-Badri on Thursday said the group should not panic in the face of falling oil prices. Russia also indicated this week it may join OPEC in lowering output.

"I don't expect a cut out of the Cairo meeting, but I do expect a 1.5 million barrel cut at their December meeting," Kornafel said. "I wouldn't be surprised to see Russia get in with OPEC either."

Analyst Olivier Jakob of Petromatrix in Switzerland said he was "neutral" about the possibility of a decision in Cairo to cut output.

"OPEC has this time around done an excellent job of not letting the market price a meeting before its start," Jakob said in a research note. "They have downplayed the outcome of the meeting and pushed the cut expectations to December but the size of the latest U.S. stockbuild now provides the potential for a surprise."

For the week ended Nov. 21, crude stocks jumped by 7.3 million barrels, the U.S. Energy Department said Wednesday. Analysts had expected a boost of only 400,000 barrels. Gasoline inventories rose by 1.9 million barrels, against estimates of a rise of 300,000 barrels

In other Nymex trading, gasoline futures were down 0.48 cent to $1.1734 a gallon. Heating oil dropped 3.27 cents to $1.7040 a gallon while natural gas for January delivery slid 14.7 cents to $6.731 per 1,000 cubic feet.

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OPEC weighs steep production cuts as members suffer
Neil King | November 28, 2008
Article from: The Wall Street Journal

HAVING failed twice in two months to calm plunging oil markets, OPEC ministers are set to weigh another round of steep production cuts as the world's economic travails continue to drive crude prices to levels not seen in years.
The Organisation of Petroleum Exporting Countries has scrambled since September to stem the fall in oil prices, which is now putting pressure on OPEC budgets from Ecuador to Kuwait. Ineffective in blunting the price spike earlier this year, the cartel is proving similarly hapless in putting a floor under collapsing prices.

The group's 12 ministers will meet tomorrow in Cairo to decide whether to move ahead on another cut of a million barrels or more after agreeing to a total cut of two million barrels a day at two meetings over the past two months. Their message going into the Cairo session has been mixed at best, with most ministers suggesting that any firm decision be postponed until they meet again in formal session next month in Algeria.

After hitting a record high of nearly $US150 a barrel in July, crude prices have since fallen to nearly a third of that in just four months, the steepest price collapse since formal futures trading began in 1981.

In the latest session, the front-month January Brent contract on London's ICE futures exchange was down US36 cents at $US53.56 a barrel. Floor trade on the New York Mercantile Exchange was closed for the US Thanksgiving holiday.

The cartel's de facto leader and the world's largest exporter, Saudi Arabia, finds itself in a bind. Most OPEC members will face real economic problems if crude prices see a sustained drop below $US50 a barrel. But at the same time, Saudi Arabia risks cutting supply and reducing fuel inventories at a time when the global economy is wrestling with a multi-front crisis.

OPEC's ability to affect the market either way has been minimal, though, as demand continues to fall across the industrialised world and investment flows dry up. Some analysts now predict that global demand could turn negative both this year and next, adding to a growing spare supply cushion that the world hasn't seen for years.

OPEC countries appear so far to have abided fairly well by pledges made since September to cut supply. OPEC provides around 40 per cent of the 86 million or so barrels of oil the world consumes daily. But that cohesion could begin to fray as exports and prices both fall.

With financial and social pressures rising, some OPEC nations are nearing an inflection point economically that could result in members such as Venezuela, Ecuador and Nigeria flatly ignoring additional production cuts.

A Nigerian oil official said the country doesn't want any more output reductions because Nigeria is already pumping below its OPEC allocation due to militant attacks on oil infrastructure that have shut around 600,000 barrels a day of production in past months. Nigeria is pumping around 1.95 million barrels a day, below its quota of 2.05 million barrels a day.

"We would have to go even farther below our quota if OPEC cuts more and that would hurt our government budget," the official said.

The Nigerian Government could slash its 2009 budget by more than 10 per cent below 2008 levels based on a current draft budget, leading to all sorts of reductions in social spending in one of Africa's poorest nations.

Ecuador Oil Minister Derlis Palacios this month said the country would seek an exemption from further OPEC output cuts because of the negative economic effect pumping fewer barrels would have on oil revenues and the country's battered economy.

Ecuador, OPEC's smallest member by production, is flirting with default on hundreds of millions of dollars of debt.

Citing falling oil prices and rising financial pressures, Angolan President Eduardo dos Santos said this week the West African nation may not have all the economic resources to fully implement a $US42 billion ($64 billion) plan to rebuild infrastructure in the country.

PFC Energy analyst David Kirsch says no OPEC nation, not even the lowest cost producer Saudi Arabia, can maintain macroeconomic stability and all their current and planned budget expenditures if oil prices fall and stay under $US50 a barrel. The cost of lower oil prices is hitting Venezuela hardest, according to PFC's calculations, as it requires an oil price above $US90 a barrel to maintain financial stability.

Oil prices have fallen roughly 16 per cent since OPEC announced plans to cut production by 1.5 million barrels a day at an emergency meeting in late October.

But what has changed fundamentally since that meeting is the expectation that the global economic downturn will be longer lasting and economic recovery, when it does happen, even more sluggish.

Seeking allies wherever possible, OPEC has reached out to Russia in recent months to shave production alongside the formal cartel. Moscow say it is eager to prop up prices, but its ability to trim production remains unclear as it faces fiscal pressures of its own and production in its biggest fields is on the decline.

Reducing output over the long haul poses a raft of challenges at a time when a number of OPEC members are close to completing a number of multi-billion-dollar drilling projects. The International Energy Agency, the Paris-based energy watchdog funded by consuming nations, expects OPEC members -- mainly Saudi Arabia -- to add a net 900,000 barrels a day in new pumping capacity in 2009, after adding 650,000 barrels a day this year.

Indonesia won't attend the weekend meeting. It no longer exports oil and will officially drop out of the cartel at year end.

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Oil Falls Before OPEC Discusses Output Cut to Stem Price Slump
Email | Print | A A A

By Christian Schmollinger

Nov. 28 (Bloomberg) -- Oil fell in New York on speculation a potential OPEC production cut to support prices may not outweigh declining fuel demand amid the global recession.

OPEC members may consider a reduction at their meeting this weekend in Cairo to stabilize the market, Shokri Ghanem, chairman of Libya's National Oil Corp., said yesterday. Crude oil futures traded in New York have slumped 63 percent from a record $147.27 a barrel reached on July 11.

``OPEC can only control one side of the equation and that is the supply side,' Stephen Schork, president of Schork Group Inc. in Villanova, Pennsylvania, said in a Bloomberg Television interview. ``They can't impact the demand side one bit. We know demand is weak and we are pretty sure it will get even weaker.'

Crude oil for January delivery dropped 99 cents, or 1.8 percent, to $53.45 a barrel at 10:06 a.m. Singapore time in electronic trading on the New York Mercantile Exchange. Nymex was open only for electronic trading yesterday because of the U.S. Thanksgiving holiday. Futures closed at $54.44 on Nov. 26 after rising 7.2 percent.

Crude, which has fallen in the past three weeks, is poised to gain this week after the U.S. government promised $800 billion to help unfreeze credit markets. The European Union has also pledged 200 billion euros ($259 million) to aid the 27- nation economy.

Brent crude oil for January settlement fell as much as 53 cents, or 1 percent, to $52.60 a barrel on London's ICE Futures Europe exchange. Prices declined 1.5 percent yesterday.

OPEC Gathers

Ministers from the Organization of Petroleum Exporting Countries, which supply 40 percent of the world's oil, are meeting tomorrow for the third time in as many months to discuss a further cut in production after crude prices plunged.

OPEC decided last month to reduce production quotas by 1.5 million barrels a day. The Cairo meeting, originally intended just for ministers from Arab nations, was expanded into a full OPEC meeting to include Venezuela, Iran and Angola.

The crude oil market is over-supplied, OPEC Secretary- General Abdalla el-Badri said yesterday in an interview in Cairo. He declined to recommend a course of action, saying any decision concerning production quotas was up to ministers to take.

Global oil stockpiles stand at about 56 days of supply, higher than the five-year average, El-Badri said. That's more than the 52-day level that OPEC would expect at this time of year, he said.

Compliance Concerns

OPEC plans to evaluate compliance with the 1.5 million barrel a day cut from last month, said Rafael Ramirez, Venezuela's oil minister, yesterday.

The group is only likely to meet about 60 percent of that cut, Johannes Benigni, chief executive officer at Vienna-based JBC Energy GmbH, said during an Oct. 23 speech.

``They might say that they will cut 1 million barrels but in reality the market knows maybe they'll cut 500,000 to 600,000 barrels,' said Schork Group's Schork. ``And that's simply not enough to exercise the surplus out of the market.'

Economic reports earlier this week in the U.S. showed a deepening recession that may cut fuel demand in the world's largest oil user.

Consumer spending slumped the most in seven years and orders for durable goods including refrigerators and washing machines declined twice as much as forecast, the Commerce Department said Nov. 26. Gasoline demand dropped 1.3 percent from last week, the Energy Department said in its weekly report.

Fourteen of 38 analysts surveyed by Bloomberg News, or 36 percent, said oil prices will decline through Dec. 5. Twelve respondents, or 32 percent, said oil will rise and 12 forecast oil will be little changed.
http://www.bloomberg.com/apps/news?pid=20601087&sid=amNdDyLhGftY&refer=home

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http://investorshub.advfn.com/boards/read_msg.aspx?message_id=26802671

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i need to learn screen shots...lol stockcharts.com/h-sc/ui?s=DUG&p=D&yr=0&mn=10&dy=0&id=t20354539913&r=62&depth=24&listNum=&cmd=chartnotes,709|931

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Pre and After hour trading.
http://www.nasdaq.com/aspxcontent/ExtendedTradingTrades.aspx?selected=DIG&mkttype=pre&symbol=QTWW&symbol=DIG

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me neither,i just watch dug as a guide especially since oil is oversold.

[lowman]

Very interesting. Never eard of double-long. Wouldn't really even know how to play either of those two. Especially, the Short, since I never accustomed myself to playing Short.

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Support 35, 38. Resist 41.50,45.00

Resist 26.50,27,30...Support 25?

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[MR MUTT]

I have added DIG to my portfolio as my hedge fund.

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DUG filled gap 39 to 41. Watch oil and the DOW monday.200 MA at 35.

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http://www.financialsense.com/energy/main.html

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In DIG for half a position at 22.08,watching oil and OPEC meeting is the 29th.
DUG break of 43.55 is a line to watch.

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ken and rod...welcome

[~6979~]

~DIG~...short... & ~ERY~...long...

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I haven't played yet but looks like one should have sold DIG and bought DUG before close Thursday as DUG is bouncing off the 200.
Gaps are usually around 4 percent
I heard commodity traders are the smartest around so are the TA's watching the news,dollar,OPEC,ect.

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