Posted on 10/10/2008 6:57:37 AM PDT by TigerLikesRooster
Oil prices hit 13-month low
Worries about declining demand send crude prices plummeting more than $6 a barrel.
By Kenneth Musante, CNNMoney.com staff writer
Last Updated: October 10, 2008: 9:37 AM ET
NEW YORK (CNNMoney.com) -- Oil prices plunged to a 13-month low Friday as investors worried that the weakening global economy was driving down demand for fuel worldwide.
U.S. crude for November delivery sank $6.96 to $79.63 a barrel in electronic trading, its lowest level since crude traded in the high $70 range in September of last year.
Investors remain concerned that a crumbling economy was causing businesses and consumers to cut back on fuel consumption.
If oil ends the day below $80 a barrel, prices could slide even further, according to James Cordier, founder of OptionSellers.com in Florida.
"People have to remember oil used to trade for the longest time at $35-$40 a barrel," said Cordier, referring to prices not seen since 2004. "The consumption that we saw back then, we could see it again."
Worries about the economy have weighed heavily on the world markets this week. Stocks and commodities have all fallen in the United States since Monday as the euro sank to fresh lows against the dollar, and U.S. treasury bonds, often considered a safe haven in times of economic strife, were extremely volatile.
(Excerpt) Read more at money.cnn.com ...
Ping!
We still have to drill here. No matter what the idiot dims say.
Shame....I’d gotten used to watching those gas station clerks running out every two hours to pull down the gas price numerals and post new ones - higher ones.
It got ridiculous that many stations gave up and bought the new digital signs to change them on the fly - no joke.
At this point they aren’t as keen to lower the prices - certainly not every two hours anyway!
It is still over $3 a gallon here in prosperous Connecticut.
The oil rising in price is what has made this nation go on it’s belly for too long. Drill here, Drill now, is not just another motto, it is for our lives.
Well over three in NC. Yesterday it was in the $3.60s where I am. Don’t know about today.
$2.98 central Illinois.
$3.59 ppg Sheetz in Wake Forest / Youngsville this morning. $3.69 ppg Sheetz in RTP, $3.84 was the highest I saw on the way in at a Citgo.
The wild ride continues...
There’s still some supply problems in the Carolina’s due to some damage to the Colonial Pipeline.
It’s in a freefall due to the hedge funds dumping crude futures. We have an exact opposite of what caused the run up. Plummeting demand and speculators running out of oil. Trump is right $50 oil here we come, this may help alleviate the hyperinflation that maybe coming. OPEC is in a panic right now and the Suadis have indicated they are’nt so happy about cutting production, Russia and Iran have got real problems. Talk about cause and effect. All because of an innocuous little group like ACORN. Who would have thought toilets like Detroit and South Miami would have caused a worldwide calamity becuase folks like Sholanda Jefferson and Jose Gomez wanted that American dream and not have to actually save for it.
Wholesale regular unleaded is down to $1.85/gal now. Diesel is dropping also as well as home heating fuel.
Right we still have to drill. The price is going to go back up when OPEC meets in November.
Colonial Pipeline was never damaged.
First their was power outages, then refinery shutdowns that feed Colonial and also a fire at Kinder Morgan’s Pasadena Terminal that connects to Colonial.
http://www.colpipe.com/home.asp
That's better than the $3.49 here in Rochelle. But $3.49 is better than the $3.59 last weekend and the $3.69 I paid a month ago. And after hitting $3.69 it went back up close to $4.00 for a short period. Now it's continuing its fall...
Actually, there was a disruption on the Colonial according to the notice we received from Transport 4 (pipeline scheduling system).
OK, earlier this year there were screams about “peak oil! peak oil!” Justifying the high oil prices - demand had overreached supply, and lo, the house of petroleum energy was on fire.
We need to do something! Replace your light bulbs with compact flourescents!
So, what's the deal?
Contracts being covered? Contracts not being taken?
I think it is because no one can get the financing to buy a contract, so they are piling up.
humn....
thoughts?
$50-60 by winter
The straw that knocked down the oil price house of cards was Bush’s elimination of the presidential ban on offshore drilling. At that instance none of the speculators wanted to be stuck holding high priced oil future options.
Still $3.79 here in Raleigh. I heard on the radio yesterday that NC has the highest gas prices in the continental US. It is still a supply problem d/t Ike from what I understand though. I had to go to 3 different gas stations before I found one that had any gas at all a couple of days ago.
It was shut down with the fire in Pasadena. But I do not find any report that the pipeline itself was damaged.
Fire shuts Kinder Morgan Pasadena, Texas oil terminal {gasoline, diesel}
http://www.freerepublic.com/focus/f-news/2089332/posts
When was this notice?
2 fitty nine in OKC ($2.59)
This season's holiday retail numbers will be the worse in years for inflation adjustment.
Too little too late.....this is a big splashing train wreck occurring and it ain't over by no means.
Markets are reacting to hedge fund pay outs and the socialization of our free market bank / market system.
The markets right now are showing its reaction to BO becoming POTUS.
And guess who will be taking credit for that and the recovering stock market??
I remember the economy recovering before Bush 41 had even left office. The irony was painful, but the country had already decided and Clinton enjoyed a long stretch of a good economy.
We have 3 major terminals here in NC.... Greensboro, Selma, and Wilmington. Do ya think the Gov / local governments and the Chambers of Commerce will push now to add more storage capacity??
Thanks Thackney...The Colonial line was damaged during Katrina.
Shale oil is still profitable @ $47 ppb.
Retails sales...watch Walmart for a good look of overall spending. BTW...Walmart is down to $51.00 today. Perhaps a good time to buy.
Yep. The Chavez-n-go (Citgo) near my house in south Nifongville (Durham, NC) hasn’t had anything but 87 octane since Ike hit, and hasn’t even had that about half the time. They’re the only station in my area that’s still having supply issues, everybody else is back to normal, but prices simply are not going down. Our prices around here are consistently still pushing $3.65 to $3.80 for regular and aren’t dropping.
}:-)4
Sorry to hear you had to play musical chairs last week at the gas stations.
This was from one of the early reports Monday following Ike. They could run, they had a hard time getting product to move.
As of 11:45 AM September 15, Colonial Pipeline’s gasoline line is operating intermittently while they await product injects. Their efforts are focused on retrieving barrels from storage until Louisiana refineries can supply new production. No barrels are being pulled from Texas storage until generators begin supplying electricity to the Beaumont terminal.
Hurricane Ike Situation Report # 4
September 15, 2008 (3:00 PM EDT)http://www.oe.netl.doe.gov/docs/2008_SitRep_4_Ike_091508_3PM-rev.pdf
About as soon as they will upgrade the water and sewer infrastructure to finally deal with the population explosion that has been occurring in Raleigh and surrounding areas for the past 10+ years.
I'm betting that now the "catastrophic" drought is over it won't be addressed until the next drought when they will "fix" it by not allowing us to wash our cars or water our lawn for months on end.
Down to $3.19/gal here in NW Indiana.
hate to see chavez’s drawers today
You are very observant and intelligent. You have a keen sense of smell with regards to all the types of manure our politicians spread. LOL!!
Not with enough new wells pumping and a boat load of new Nuke reactors.. Independance is right around the bend.. ALL the oil and natural gas offshore on the east coast of the US... has not even been TOUCHED YET... could be more than California..
Sustained high prices at the pump build the political will for the public to throw off the econuts, and do the drilling that we need to become energy independent.
I’m still ROTFLMAO at the Freepers like “curiosity” who said there was no oil speculation, it was going to $200 a barrel and we would never again see oil under $100. The world is full of gullible dupes. There is a reason some people will always be poor.
Way back when oil was at $145, I said it was mostly speculation and that the floor on oil was $60 or $70. All we needed was a stronger dollar. I think $70 is the floor for oir, but if it drops to even $50, I won’t be shocked.
All those folks who dumped their 2 year old $40,000 SUV’s for less than half price and then paid MSRP + $10,000 for a Prius are feeling pretty stupid right now. At the height of the il shock, my 1st thought was, “I wish I liked trucks and SUVs. I could buy two used: one to drive and one to flip when oil crashes.”
We need to drill AND we need the government to put a floor under oil at no lower than $60 to spur development of shale oil extraction, and various alternative energy sources as well as ramp up construction of nuclear power plants.
Unfortunately, I have no faith in an idiot electorate to follow through and demand all of this from Congress. They forget so soon. Gas goes to $2.99 a gallon and suddenly all is right.
Drill now, damn it!
Put a floor under the price of crude.
Get working on shale oil now, damn it!
Get working on alternative energy.
Build those new nuclear plants now, damn it!
Sorry, I wasn’t thinking. We need to get through this recession first before we support artificially high oil prices. Cheap oil will help stimulate the economy. Then again, higher oil will create some jobs in energy. I still think I was wrong and we need to get through the current recession first, THEN do everything I said. Although there is no reason to wait on constructing nuclear powerplants and drilling new oil wells. Those should be done immediately.
We are down to $3.30 here in Wilmington. Come on down and buy some gas and eat some shrimp and grits! Oh yea, and watch the Red Sox!
Unfortunately Gold & Silver are dropping right along with oil. Blech!
But, I’m still OK. I’m in this for the long haul.
What planet are you on? It's still in the $3.39/gal where I'm at although I have have seen it at $3.29/gal here and there. Don't know anything about diesel or home heating oil. I will say though that the prices are dropping, but no where near as fast as they rose. The oil companies are still trying to hang onto that $3 + /gal as long as possible IMO.
That's the wholesale price, not retail. Add jobber cost, transportation, retailer cost, profit....
$3.79 a gallon in No. Cal.
GASOLINE RBOB FUT (USd/gal.) 180.700cents/gal @ 17:05hrts. 10/10/2008
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.