Free Republic
Browse · Search
General/Chat
Topics · Post Article

Skip to comments.

Oil sinks below $100 (because of slowdown in US economy)
CNNMoney ^ | 5/5/2011 | Charles Riley

Posted on 05/05/2011 4:00:19 PM PDT by Signalman

NEW YORK (CNNMoney) -- Oil prices plunged more than 8% Thursday as weak economic data and a strengthening dollar drove crude to its biggest one-day drop since April 2009.

The main U.S. oil contract for June delivery settled down $9.44, or 8.6%, to $99.80 a barrel. That's its lowest level since mid-March and marks its biggest one-day percentage drop in two years. Brent crude, the European benchmark, fell $10.73 to $110.46 a barrel.

The broad underlying fear is that the U.S. economy is slowing down, and traders have a slew of data to back that theory.

On Thursday, a government report showed the number of people filing first-time unemployment claims surged to 474,000 in the latest week -- its highest total in 8 months. That means less demand for oil products because if you don't have a job, chances are you're trying conserve on gas and other energy costs.

(Excerpt) Read more at money.cnn.com ...


TOPICS: Business/Economy
KEYWORDS: economy; oil; sinks

1 posted on 05/05/2011 4:00:24 PM PDT by Signalman
[ Post Reply | Private Reply | View Replies]

To: Signalman

But don’t count on gas prices going down.


2 posted on 05/05/2011 4:06:53 PM PDT by beethovenfan (If Islam is the solution, the "problem" must be freedom.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: beethovenfan
The refined gasoline price always lags behind the crude oil price.

The reasons are so absurdly simply that people who don't understand them probably can't learn them.

One of the more interesting possibilities here is that the uptick in manufacturing probably reflects yet another productivity improvement driven spell of deflation.

Now that's even more complex so I don't imagine most of the folks on most discussion boards to have the slightest idea of that kind of linkage.

3 posted on 05/05/2011 4:13:43 PM PDT by muawiyah
[ Post Reply | Private Reply | To 2 | View Replies]

To: Signalman
Its amazing to me how people keep ignoring the law of supply and demand. Every time oil or other commodities get well ahead of the price of production there are a bunch of talking heads (usually peddling gold) telling everyone this time its different but it never is..
4 posted on 05/05/2011 4:13:50 PM PDT by montanajoe
[ Post Reply | Private Reply | To 1 | View Replies]

To: Signalman

Hey, its the perfect time for 474,000 layoffs, cheaper oil and a higher dollar: summer! Go ahead! Fill up those tanks, and start your get-away-from-it-all engines!

Worry about saving for TEOTWAWKI later! It’s only nearly half a million layoffs a week for several years now. Spending that money is only like putting another round in and spinning the cylinder before another try. [Little simile there.] ‘Sides, if the inevitable happens, those beans and rice will feed you for years! And don’t worry about the neighbors. Theyzz cool.


5 posted on 05/05/2011 4:20:20 PM PDT by familyop ("Wanna cigarette? You're never too young to start." --Deacon, "Waterworld")
[ Post Reply | Private Reply | To 1 | View Replies]

To: Signalman

I didn’t know the economy had done anything but slump for over two years. It will continue to slump until we get rid of the Keynesian crackpots running the show.


6 posted on 05/05/2011 4:33:09 PM PDT by pallis
[ Post Reply | Private Reply | To 1 | View Replies]

To: pallis
The 99er's as they are called will not or better not get anymore checks.

Any responsible person wants to know where are the on Mcdonald's jobs.

I don't really care about Wall Street talk about a bubble getting ready to bust.

You were part of the housing bubble and now your young HOPE and Change young Voters are about to create another default problem with unpaid student loans, wonder what they will tell the bill collectors I voted for Obama.

I guess if they work for Mc Donalds the IRS will not allow them any Earned Income Tax because of past due students.

7 posted on 05/05/2011 4:40:55 PM PDT by scooby321
[ Post Reply | Private Reply | To 6 | View Replies]

To: Signalman

Recovery summer ...er... fall ...er... winter ...er... spring ...er... nevermind.


8 posted on 05/05/2011 4:46:28 PM PDT by GnL
[ Post Reply | Private Reply | To 1 | View Replies]

To: montanajoe

Actually oil started dropping hard today for the same reason silver has been dropping. I heard today that starting tomorrow they are raising the margins.


9 posted on 05/05/2011 4:57:22 PM PDT by sheana
[ Post Reply | Private Reply | To 4 | View Replies]

To: sheana

I heard the same thing but the price of oil is still way above the cost of production


10 posted on 05/05/2011 5:03:25 PM PDT by montanajoe
[ Post Reply | Private Reply | To 9 | View Replies]

To: Signalman

As always, the best answer to high oil prices is a high oil price. A “high” oil price is deflationary over time as it inhibits economic activity. This leads to a lower oil price and more economic activity.

duh


11 posted on 05/05/2011 5:15:30 PM PDT by SaxxonWoods (Throw away your papers, blow up your TV...and set yourself free.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: muawiyah

“The refined gasoline price always lags behind the crude oil price.”

Yes, by about six months.

On the other hand, someone poots in the Middle East and gas goes up 20 cents.


12 posted on 05/05/2011 5:23:13 PM PDT by The Antiyuppie ("When small men cast long shadows, then it is very late in the day.")
[ Post Reply | Private Reply | To 3 | View Replies]

To: The Antiyuppie

Poots? How about “SHOOTS” ~ Gaddafi is using heavy artillery. NATO is using cruise missiles and bombing runs.


13 posted on 05/05/2011 5:28:59 PM PDT by muawiyah
[ Post Reply | Private Reply | To 12 | View Replies]

To: Signalman

Funny thing about ideologically free economics. They tend to represent reality. In a perverse way, to be sure, I think it’s a hoot that Onada’s baldfaced attempt to drive gas prices at least to $5/gal is being blunted by his equally baldfaced attempt to kill the American economy.

But then Marxist ideology trumps fact, logic and reality every time.


14 posted on 05/05/2011 6:31:33 PM PDT by dools0007world
[ Post Reply | Private Reply | To 1 | View Replies]

To: muawiyah
The refined gasoline price always lags behind the crude oil price.

Only when the price of crude is dropping. When it goes up gas price goes up the same day even though the gas in the station's tank was purchased at the lesser price. Not really a complaint, gas station owners gotta eat too, but it's still a shady practice. I try to stick with Murphy's or Sam's - they seem to keep it relatively honest.

15 posted on 05/05/2011 7:04:08 PM PDT by Some Fat Guy in L.A. (Wanna learn humility? Become a Pittsburgh Pirates fan!)
[ Post Reply | Private Reply | To 3 | View Replies]

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.

Free Republic
Browse · Search
General/Chat
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson