why did it go way up to $147 a barrel?basically, there was a-- what's called a fear premium. >> and the fear was that saudi arabia itself had peaked out, that you'd reached your ceiling of how much available oil is left in your overall reserve. so what's the truth? >> the truth is, here is the kingdom with more than 260 billion barrels, and i firmly believe that the potential to add another 200 billion barrels of oil are there to be found. >> if the oil minister of saudi arabia had one message it was, there is no need for those fears. and to make the point, they let us see facilities that will increase saudi capacity from about 10 million barrels a day to more than 12 million. and they're going to the ends of the earth to do it. this is shaybah, a desert wilderness where temperatures can reach 135 degrees. the saudis say that 18 billion barrels of oil lie beneath these red sand dunes, more than four times the proven reserves of alaska. to tap into it, the kingdom's national oil company, saudi aramco, had to build an oasis

if they were, it might only be $100 a barrel to $300 a barrel, instead of 500.laughter] but it is still quite a difficult situation. so, what we are seeing here, a little bit of tension at the kuwait level. some tension between kuwait and iran on some of the offshore fields. the iranian and the kuwaitis are claiming the same field. there is some tension also between katar and ir ifan. -- and iran. it is true, they are using the huge gas field. and they are using this to make the average capacity of 77 million per year. they also now -- i forgot to the amount, i think it i1.5 million barrels per day of gas to liquid. they have a very large fertilizer plant. they also make aluminum. using energy from the gas. they are using this. the iranians are climbing that this could create migration of their gas, which is not being used, into katar. which is unlikely in the next six months, but over 20 years, there could be some migration apparently. but it is a bit of an excuse for the iranians to put pressure. the iranians could, if they had the technology, could use the ga

you step further back what has changed so much in the world that oil has gone from fifty dollars a barrel in two thousand and seven to over ninety now just five years later maybe it doesn't add up we will hear from our guests and plus we are in new york on a day that u.s. g.d.p. was revised down one point three percent on an annualized basis that is not very much growth it is pretty paltry now a little bit of trivia nine hundred twenty nine stocks crash it saw effects in times square so we headed out to times square for a special loose change to see if we're seeing any impact from what's going on in the economy now let's get to today's capital account. all right so as i said at the top of the show the e.u. parliament committee voted unanimously for tighter restrictions on banks trading in this included curbing high frequency trading they voted towards that now add this to a list of countries that have either proposed or an active bans or some kind of provisions regulating more tightly high frequency trading ok germany canada. also australia i believe so where is the u.s. on this list and

so five years ago we had fifty dollars a barrel oil what has changed so significantly in five years that it now trades above ninety dollars a barrel the world really changed that much we have wars we had conflicts that would impact oil prior to two thousand and seven so our gas has a really unique perspective because he has been in the trenches for a long time watching this but first we talked a little more about swaps and swap regulations and the the evolution of swaps and derivatives so more with david greenberg on that. so we're getting into this exotic derivatives market now because it's kind of funny we went from derivatives to exotic derivatives well these it's just one more way for these traders and other companies to try to raise money for their for their balance sheets whether or not there's a real purpose for every swap and every o.t.c. product that would be an interesting question ok and the takeaway is that exchange is don't solve any of those issues and they also put into the equation a profit motive which would then what incentivize just more derivatives more market ma

so those barrels have already been taken off the market.he market can not really afford to take many more barrels off the market. unrest threatens supply of additional barrels at a very crucial time. ashley: but the price movement hasn't been that high to the upside, has it? why is that? is that psychological $100 a barrel level, do we push through that anytime soon, maybe this week? >> well, we were threw it last week but there's a lot of moving pieces going on here. you have the unrest last week. you have the iranian situation that's been cooking for quite some time. you have the qe3 situation that weakens the dollar and bids commodities in general. on a technical level the crude oil market trades through the 200-day moving average last week. that is a very strong technical level people have been looking at. it's a strong technical level for all commoditis. all financially traded instruments. ashley: so where do you see oil going now? i understand a lot depends what is going on in the middle east and what happens next but what do you thin

to use the term barrel of oil equivalent, it is more than 700,000 barrels of oil per day. >> is it fueling the economy here? >> that is a fair statement. s direct payments are brown $66 billion. a run 2011, we are -- a new record this year in the range of $13 billion or $14 billion. >> in addition to paying the government, is that for land use, royalties? >> payments to the national oil company for their interest in the operation here. also payments to government- owned railroads, pipeline. it is a huge amount of money. >> so it is a good deal, both directions? >> we think so. it is structured that way, and a fair deal. >> the history. when was of oil discovered in the area? >> i do not know the exact date, but it was our field, in the 1920's or 1930's. >> so really the big piece takes off with the u.s. investments? >> this was discovered before we came up. the discovery was here, and back in 1985 and 1986 they had a huge blow out, and that well was on fire for more than a year. that explains the bit of a technical difficulty of the field and why the cuts extend people were looking for par

would hurt less oppressive government hundred dollars a barrel to $300 a barrel. instead of 500. it's still a difficult situation there's a little bit of tension between kuwait and iran on some of the offshore fields. the iranians and the kuwaitis are in the same field but it's not a very big issue. there is tension between qatar on the one hand on the big gas field because the iranians are choosing the qatari stealing their gas because it's true the tories are using the big gas field, and the qataris using 77 tons of their energy per year and i forget the exact amount, but it is one and a half million per day of gas to liquid to make diesel running this. they have a very large fertilizer plant and so on and they also make aluminum from the natural gas and the plant. so they are using that field. they are claiming that this could create migration which is not being used and to qatar which is unlikely but over 20 years there could be some migration apparently. it is a bit of an excuse for the iranians to put pressure on the qataris. the fact is the iranians could if they have the

short barrel. long barrel. some say, no, the long barrel. the cannonball go further because there's more force acting on it. true or false? answer begin with f. false. it's because there's more what? time. there's more time. the cannonball is in the barrel for a longer time being pushed, pushed, pushed, pushed, pushed, pushed, pushed. it's gonna go a lot further if the cannon is a lot longer. can you see that? okay. and all that stuff makes sense here, doesn't it, huh? so we find out this physics we're talking about is really the physics of common sense. how about you-- you're riding in a car and the brakes have failed and you gotta stop the car, which is gonna require the greater force? let's suppose you got your multiple choice. you either drive into a haystack or you can drive into a cement wall. in both cases you gonna-- [makes sound] --come to a halt. in both cases, you are gonna-- if you're going at a certain speed and you come to a halt, in both cases, you'll have the same change in momentum. true or false? - true. - true. you drive i

for every million barrels of oil you import, you don't, you save, for five million barrels a day youould save about 2 billion barrels a year. $200 billion. so, that is where your $200 million comes from. it takes place over three or 4-year period. david: howard, you're something who is in the industry and obviously has a personal interest in bringing up gas and oil from fracking. however, you have a ph.d from harvard. two degrees from yale. you know how to talk the talk. you don't think all regulation is bad. what regulation works in your business and what doesn't work? >> good question. so the reality is these technologies, horizontal drilling, fracturing, they're big industrial processes. all big industrial processes have environmental consequences. the regulation that works would be regulation which is clear and consistent. so that the energy industry can price it into the cost of doing business. we've seen estimates, for example, you can handle all the environmental issues in natural gas for maybe 25 cents an mcf. remember gas used to be $8 an mcf. now $3 an mcf. liz: was even 14

oil continuing its three-day slide, slipping below $92 a barrel. okay, look at that number on your screen. this is significant as we get closer to below $91 a barrel this on news that the report, the weekly report showing crude inventories, they rose more than expected. so for now at least this market is trading on fundamentals. meaning the real numbers and the real supply. and as a result, the energy sector is selling off sharply today. it's the worst s&p performer, but this all changes depending on the headlines. let's get right to the floor show and get the real story, see how your money is moving. we have traders at the new york stock exchange, cme group and the nymex. mike mcfarland we will get to you first. what people thought might be a one day story on monday which is the dramatic slide in oil continues now. we have to point out that it has far-reaching effects on a lot of people's stocks, any energy intensive companies not just energy companies; right? >> yes, absolutely. obviously it wasn't a one day thing. it was kind of like a mini flas

. >>> and in syria, rebels being a crews the government of dropping tnt barrels. and they say craters like this one prove it. [ female announcer ] quaker yogurt granola bars. they're whole grain good... and yummy good. real fruit pieces. 12 grams of whole grains and a creamy yogurt flavored coating. quaker yogurt granola bars. treat yourself good. to compete on the global stage. what we need are people prepared for the careers of our new economy. by 2025 we could have 20 million jobs without enough college graduates to fill them. that's why at devry university, we're teaming up with companies like cisco to help make sure everyone's ready with the know how we need for a new tomorrow. [ male announcer ] make sure america's ready. make sure you're ready. at devry.edu/knowhow. ♪ at devry.edu/knowhow. one is for a clean, wedomestic energy future that puts us in control. our abundant natural gas is already saving us money, producing cleaner electricity, putting us to work here in america and supporting wind and solar. though all energy development comes with some risk,

barrel down $2.38 on the day.ins also tumbling as supplies, back i on the market after that crowd. closing near a two-month low. plunging 4%. david: united states ambassador to the united nations and ambassador to libya presented two different views of events that led to the death of our ambassador and three others. take a listen. >> that information is the best assessment we have today in fact this was not a pre-planned, premeditated attack. >> the way they acted, leaves us with no doubt that this is preplanned, predetermined. david: to exactly different answers to that question. it could lead to billions of dollars of investment for libya, something of great interest to our next guest. a member of the libyan royal family joining us now, good to see you again, thank you for coming in. on whose side do you fall on this issue? the president of libya or the u.s. ambassador? was it a planned attack or was it spontaneous? >> it was a planned event which was the work of qaddafi supporters. they have no shame in want to

$80 a barrel or $100 a barrel? >> well, um, it might be $80 a barrel for the u.s. intermediate price, might be $100 for the brent price at the same time, brent trading 109 and change today. david: by the way, we have a lot more oil coming online as a result of the north sea. those operations had been put on hold while they did maintenance. >> correct. david: now they're being released, so we're going to see a lot more supply from the north sea. >> yes, yes. so total non-opec production should be about 700,000 barrels a day higher in the fourth quarter than it is in the third quarter. liz: well, this is all about people watching and saying what should i do and what should i add or take away from my portfolio to make me money for my retirement, my pension, my 401(k)? there are the big integrated oils, there are the drillers, the oil services companies like the schlumbergers out there. >> right. liz: what do you think is a beneficiary of the current atmosphere? >> well, um, i'm more of an oil price expert than i am an equity -- liz: of course. but yet you could still

into the market, incremental barrels that would help calm down this price. and as you saw today there is a trapdoor under this market if they do so. it will work. it will work for a time. they will have to come across with pore and promise more but it will work. >> susie: let's talk about where oil price kos go from here. let's look at this graphic where we see oil prices have been moving up very sharply since the end of june, up almost 30%. you know, before today's pullback. what price level do you see from here. let's say there is a release of new oil supplies on to the world markets. where does the price of oil go? >> well, you think beyond that, part of the rally has been due to support from expectations about monetary policy. we got it from ben bernanke. we're still waiting for it to a full degree from the ecb. but it's run its course, i believe, and what oil has to do unlike gold and silver, it's got to pay tribute to the fundamentals of supply and demand. the demand outlook susie is deteriorating on a daily basis, particularly as you look into next ye

two identical barrel vaults crossing at right angles form a groin vault. these dramatic intersections would find lasting expression in the great romanesque churches of the middle ages. by rotating the arch arou a fixed center point, they could describe a dome or an apse with a half-domed ceiling. but e arch was only part of the story it was an extraordinary new ilding material which made these fluid designs possible. 20 miles from rome, in the hill town of palestrina, stand the remains of one of the first great roman building projects-- the sanctuary of fortuna, the goddess of fortune. much of it was hidden until a world war ii bombing raid sheared away the later housing, revealing this gigantic conception... a series of seven immense terraces rising 400 feet up from the grotto below, where the fortune-telling lots were cast for pilgrims, all the way up to a colonnaded rotunda on top, where the 17th-century palace of the barberini now stands. and the whole complex was aligned to look out over a breathtaking vista of plain and mountain and with axial symmet

initially there was a spasm, above $100 a barrel, now we're below $99 a barrel.o traders. we have traders at the nymex where oil is traded. also traders at the cme and new york stock exchange. i do want to start at the nymex. why the pullback? i mean you would think that nothing has really changed except the tension has gotten hotter and higher, yet the price of oil could not maintain the lofty levels. john? >> if you take the price of oil within the context of where it's gone the last four to six months, oil has put on a rather substantial gain, obviously breaking above $100 a barrel. want to keep in mind the brent wti dynamic, spread of $18 between that cross. the threat of spr, strategic petroleum release is also playing out there as well. some factors, based on the -- quantitative easing with what the fed has done. liz: and of course oil's denominated in dollars. let's get to the cme. you tell me, what is the one story today that jumped out at you where you said this is something to watch over the weekend? >> the one story that really took hold of me in chica

hecht: before the stream restoration, when you have a rain event, the stream would just be barreling, just filled with tons and tons of water, and the water would move very quickly, eroding the stream banks further. narrator: the rushing water ran all the combined sewage straight into the monongahela river, which is a main supplier of drinking water for the region. hecht: what has happened because of the restoration is the water overflows its banks, it floods into these nice flood plains with native plants. and then slowly the water percolates back down into the stream. narrator: this allows the land to naturally filter and clean the sewer overflows before they enter the river. the restoration included extensive environmental changes to improve the stream and infrastructure changes to reduce the csos into the watershed. hecht: when i first started talking with people about stream restoration, i kind of imagined people out with shovels and small-scale. this is a massive $7.7 million project. schombert: nine mile run watershed is the most significant urban watershed restoration ever don

they're calling these barrel bombs.say that they are crudely constructed improvised explosive devices that the syrian regime effectively are taking barrels and loading them up with everything from nails to tnt, to other types of explosives, to fuel. we've seen more and more amateur videos posted on-line reporting to show the aftermath of these types of attacks. yesterday in the hannamu district of aleppo we saw amateur video reporting to show a residential building that had been completely flattened. you saw men scrambling around that building searching frantically for any survivors or others buried in the rubble, and increasingly, these activists are saying that the syrian regime using these on more neighborhoods and just wreaking so much deconstruction by doing so. >> and mohammed, tell us why is this happening now? why have they decided start using this? >> well, suzanne, it's very hard to verify since the syrian regime is not saying anything about this at this point, but the opposition activists and the rebel free s

we're still below $90 a barrel, guys.f we do indeed close below $90, this would be the first time dating all the way back to august 2nd. that was the last time we saw 89 and change. so, melissa that is a key level to watch here as we head into the last hour, last couple hours of oil trade, the pit trading that is. this is a big day today. the close will be a beg one. melissa: that contract looking really weak. sandra smith, thanks so much. >>> typically that people flood the post office, tax day and the holidays. the mail-heavy holiday season is well on its way. everyone is gearing up except for for the post office that is. the u.s. postal service is set to completely run out of cash in october, don't forget. that is right before the influx of holiday cards and packages. we have the head of printing industry midwest and he is urging lawmakers to take action in order to prevent disasterous consequences not only for the usps but the printing industry. i understand you're the head of the printing industry association out in

>> excuse me. >> barrels of oil from america to canada? how can you tell canada, we don't want your oil and send it to china? >> so now they're going to china. >> to the west coast of vancouver because the canadians opposed it. secondly, a large part of oil will end up in the gulf coast, it's going to be exported once it's made into diesel and the oil companies have said that. they refuse to say we're going to use this oil in the united states. >> only 80% of the finished products in this country are exported to other countries. 92% go to the benefit of the united states. and i agree with you, i think all the fuel we make here in the u.s. should go for americans' benefit. but the reality is, the pipeline would bring much needed oil and much needed jobs to this country. we've already started building the pipeline from curbing, oklahoma, down to the refinery in texas. we need to have the other piece down.hoo here. whether you like it or not, that oil is going somewhere. it might as well go through the united states. >> we will carry the risk

remember, this is a pivotal level to drop below $90 a barrel.as talking to an analyst this morning who watches this market very closely, he does call 90 a pivot level and a drop below there could bring more bearish sentiment into this market. here's the inventory numbers that changed -- that changed that number this morning. that drop was not expected. a build was actually expected for crude oil inventories, but here's the bearish point about that, guys. overall supplies are still 7% higher of crude oil than they were the same time last year. we're still not using as much of this stuff as we were just a year ago. that's what continues to push those prices down. and on this drop below $90 a barrel, the energy management institute says that, the markets are coming to the reality that qe 3 in the u.s., more qe in u.k. japan as well as the ecb bond buying program are not likely to result in a major growth spurt. a ninth straight week that we did see inventories of gasoline. natural gas, directly tied to cooler weather setting in. natural dpas gas --

we only use 2.5 million barrels of that.t barrels from nigeria, venezuela, angola, but we do not have to import opec crude. we have sources in america that can be developed. so i believe what you're going to see in governor romney, he's going to step up with a plan. he'll carry it out. president obama's had four years to do something and nothing has been done. all he wants to do is talk is tax. he says the industry's doing well but we should tax them more. tax them more, they're doing well. i can tell you, you tax them, you will cut the activity dramatically with taxes on the oil and gas industry. >> okay. boone, listen, you're already a powerful gouy but i'm going to give you a promotion. you're energy secretary for a year, maybe an autocrat. you can do what you want, outside of natural gas for transportation, because we know that's the basis of your big plan. what would be the first one or two things you would do? >> well, you've got to develop resources in america. we've never had the leadership in washington from either

oil is down to about $92 a barrel, 2 1/2 cent decline.about weak economies around the world and that would affect the oil demand. and now new oil storage numbers, some nervousness about that. maybe a buildup in supply so down goes the price. the price of gold flat today. you might have expected it to go higher with everybody printing money, the japanese included, but only a buck 80 higher. 1773. stocks flat, no, not flat. modest rally, up 44 points. existing home sales number the top of the hour and the rate at the highest level in two years and up goes stock, 44 higher for the dow and 13-6 is the number. california governor jerry brown, with the tax plan, if he's defeated in november. more on that in just a moment. >> a new audiotape just released, president obama back in 1998 talking about wealth redistribution, please listen. >> i think the trick is figuring out how do we structure government systems that pool resources and hence, facilitate some redistribution because i actually believe in redistribution. >> okay, that was 14 years ag

we're now sitting at $90.14 a barrel. have reacted as well with oil prices moving lower. in the meantime, gasoline traded up. gas up 3.6% recently. real disconnect between oil and gasoline. that does it for "closing bell." thank you for being with me. have a great night. follow me on twitter and google plus. "fast money" is up next. don't miss melissa's interview with wilbur ross. it starts right now. i'll see you tomorrow. >>> the pain in spain spreads to the u.s. should you just grin and bear it? >> even though our outlook for the economy is moderate, we think we can find good stocks today to be good long-term holdings. >>> sit time to get cozy with your around-the-way girl? >> don't call a comeback. i've been saying it for years. >> maybe you should just hold your fire. >> fair value is probably somewhere down 5% to 10%. right now, i think you have to shoot with a rifle and not with a shotgun. >> the commodities king has a golden ticket and guy adami

it is hard to estimate how much this kind of operation would cost but as long as these barrels are a threat to every black sea country key of would most certainly get international aid should it appeal for help this year's tourist season has finished with no major incidents but some say that next year unless there's urgent political action the region may not be so lucky alexi russia of ski r.t. reporting from crimea in ukraine. care to say about this stay with us i'll be back with a recap all the top stories in a moment from. the . blinds in russia would be so much brighter if you knew all about song from funniest impressions. piece from stunts on t.v. dot com. wealthy british style. is not on the tires. market why not come to. find out what's really happening to the global economy with mike stronger for a no holds barred look at the global financial headlines tune into cars a report on our. if. it is started here for going global. it's cooling while. you. choose your please take your stuff and. make your statement. spoiled towards. my goals through. the swells the plant that was res

it is hard to estimate how much this kind of operation would cost but as long as these barrels are a threat to every black sea country key of would most certainly get international aid should it appeal for help this year's tourist season has finished with no major incidents but some say that next year unless there's urgent political action the region may not be so lucky alexi russia ski r.t. reporting from crimea in ukraine. we're up to date and i'll be back with a recount all top stories shortly. download the official application to choose your language stream quality and enjoy your favorites from odd such t.v. is not required to watch our two all you need is your mobile device watch r t any time. dreaming of a luxury used to seem round trip with the open air entertainments. a little minimal exercise to get in better shape. and the cost of cuisine with almost no. it's. something to. our summer sales on our cheek. the swiss the plant that was responsible for causing the world's worst industrial disaster. had been abandoned in a condition where it had become a source of pollution or t

years underground succumb focuses constructed and put above the decaying barrels this would solve the problem. it is hard to estimate how much this kind of operation would cost but as long as these barrels are a threat to every black sea country key of would most certainly get international aid should it appeal for help this year's tourist season has finished with no major incidents but some say that next year unless there's urgent political action the region may not be so lucky alexi russia ski artsy reporting from crimea in ukraine they would ask how the bank with the recap our top stories in a moment. the news is good laboratory to mukherjee was able to build a news most sophisticated robot which all unfortunately doesn't give a darn about anything turns mission to teach creation why it should care about human to human goodness this is why you should care only on the dog. childhood was overshadowed by this tragedy. these two feel the fear of these to. remember every second of this nightmare. it will remain in their memories in the hearts. and souls. of little angels. wealthy britis

it is hard to estimate how much this kind of operation would cost but as long as these barrels are a threat to every black sea country key of would most certainly get international aid should it appeal for help this year's tourist season has finished with no major incidents but some say that next year unless there's urgent political action the region may not be so lucky. alexy rush of ski or see reporting from crimea ukraine the two runners in the u.s. presidential race are desperately trying to outwit and outmaneuver one another when the hearts and minds of americans. but the question is do voters even care r t a's resident asks people on the roaming streets of new york amid of that pre-election fever now in other news the u.s. justice department has ended a long running probe into the cia's brutal treatment of detainees without filing any charges the last remaining cases involved the killings of two terror suspects were tortured to death in the agency's facilities in iraq and afghanistan the investigators say they didn't have enough evidence but some experts believe it might have b

it is hard to estimate how much this kind of operation would cost but as long as these barrels are a threat to every black sea country key of would most certainly get international aid should it appeal for help this year's tourist season has finished with no major incidents but some say that next year unless there's urgent political action the region may not be so lucky alexi russia of ski r.t. reporting from crimea in ukraine. you have to say and i'll be back with a recap our top story is. i had a family i lived in a fairly nice community was there which was an upscale it was just like you know archie bunker society ok then they started showing up at what happened was my company decided i could get cheap labor and they got rid of us. through these are all negroes in the eaglets love legally we have to get up every morning we have to go to work and you know we have to pay our bills and we have to do it and that's just the american dream and if you want the american dream you have to go by the last i figure here's one of the major trails into the united states senate. i watch and they

it is hard to estimate how much this kind of operation would cost but as long as these barrels are a threat to every black sea country key of would most certainly get international aid should it appeal for help this year's tourist season has finished with no major incidents but some say that next year unless there's urgent political action the region may not be so lucky. alexi russia ski r.t. reporting from crimea ukraine. moscow has been celebrating city day marking the anniversary of its eight hundred sixty fifth the year and on our website you can see some of the festivities. tchaikovsky's footage from red square where an annual military music festival took place combined with a flashy parade uniting military units from all over the world. also online to how one of the world's fastest developing markets has become a battlefield germany looks ready to join in the economic war between china and the u.s. with a wrangle over the price of solar energy. plus the race route a new british sitcom about a family of pakistani immigrants stirs up a storm of complaints from muslim viewers. the