Oil Prices Dip Below $60 a Barrel

MSN Money ^ | October 21, 2005 | Associated Press

[Semper Paratus]

VIENNA, Austria (AP) - Crude-oil futures traded below $60 a barrel Friday, as supply concerns eased on signs of adequate fuel stocks in the United States, the world's largest consumer.

Prices for related products -- gasoline, heating oil and natural gas -- also fell, further indicating that worries about short-term shortfalls were easing.

Related newsDow Closes Down 133 on Economic Concerns High Prices Bolster Energy Cos. Profits Market Report -- In Play (DVN, VLO, XTO, BP, SLB, SU, SUN, PPP, KWK, XOM, APC, TLM, RIG, OXY, MRO, GRP) N.Y. Crude Oil Prices Fall to 3-Month Low Key Economic Indicator Declines Sharply Light, sweet crude for December delivery fell 45 cents to $59.57 a barrel by afternoon in Europe in electronic trading on the New York Mercantile Exchange.

The November contract settled $1.38 lower Thursday to expire at $61.03 a barrel -- the lowest closing price for a front-month contract since Aug. 3.

December Brent crude futures on London's International Petroleum Exchange fell 61 cents to $57.30 a barrel.

[ATCNavyRetiree]

Back here in my hometown of East Liverpool, Ohio gas is down to $2.39 from $2.80 just two weeks ago.

[Cobra64]

The demand side from India and Chine will only continue to grow.

Very few people on this planet do not understand Supply & Demand = Economics 101.

[ATCNavyRetiree]

Oklahoma has lowest gas prices:

http://flyingj.com/fuel/gasoline_CF.cfm

[KevinDavis]

You should take Econ 101 course.....

[uglybiker]

If it started raining oile futures speculators in NY would that be such a bad thing?

As long as it happens in NY and not wherever I'm at.

I ain't cleanin' up that mess.

[trubluolyguy]

As long as it happens in NY and not wherever I'm at.

I ain't cleanin' up that mess.

---

LOL

[JackDanielsOldNo7]

I have taken Econ 101. I am also a CPA. What some Freepers around assume that if someone is a capitalist that he is honest and no gouging goes on. How come gas sells for 2.80 a gallon in Fayetteville and 2.50 in Raleigh. Econ 101 does not explain that.

[Sam Gamgee]

Most people don’t understand that it doesn’t matter one or another to the gas retailer what the price of gas is. If it’s 50 cents one likely bought it for 40 cents and makes 10 cents. If its $2.00 the station likely bought it for $1.90 and again makes 10 cents. In fact as the price of gas increases the retailer probably loses money, because drivers feel “poor” and likely forgo that chocolate bar or bottled water in the station’s store – where they hope to make the real money.

[jec41]

Is that that sound of a speculation bubble popping?


Yep, it just poped back over 60.

[HamiltonJay]

Fundamentals are oil is 30-40 a bbl tops... Hedge fund speculators are the only reasons its been over that in the past few years... "Irrational Exhuberism" strikes again.

[Sam Gamgee]

It’s the socialist conundrum. On one hand the people are anti-industry and yet want to save money in their budgets. They think water should be conserved as environmentalists, but don’t want to pay the market price for water – which would encourage conservation. They don’t want refineries in their backyard, but bitch about the gas prices. They want rent control and then complain about low vacancy rates.

The good thing about domestic oil supply is that it will also enrich American companies and investors and be a net benefit to the overall US economy – and then maybe Americans will stop bitching about their gas prices – the cheapest in the Western world.

[Chode]

if the station owner pays $1.00 and charges $1.10 and tomorrow the futures-quote says the next tank will cost him $1.25, he will immediately raise his price to $1.35 so he can pay the $1.25 the new gas costs(he is paying for the NEXT tank remember) and still keep his $0.10 profit... but if he charges more, say $1.45, then i'd say he's gouging.

i'm pinging speed addiction on this for you, maybe he can explain it better since he owns one...

speed see my post #55 too.

[Tolerance Sucks Rocks]

Still 2.80 for gasoline in Silver Spring, Maryland.

[Sam Gamgee]

What is really funny is the response from the nation I come from – Canada. If anything we should be jumping for joy over oil prices. We are still a resource nation. Forestry and mining is dead. So finally our nation is making a killing off a resource. Instead a poll shows 50% of the nation wants the entire industry to be nationalized. How that will bring lower gas prices I am not sure. There is a market price for oil. So the government would have to borrow billions of dollars to purchase the entire Canadian oil industry. That billions of dollars will cost us millions of dollars of interest each year. If Canada then decides to sell it to its own people at say half the world market price, it is in effect subsidizing the gas price thanks to the Canadian tax payers. So in the end all that happens is instead of paying high prices at the pump, the consumer will pay higher taxes in April. Even if the government argued that the removal of the profit margin will money for consumers I could argue that government mismanagement will make up for that and then some. Fairly elementary economic reasoning, yet my compatriots can’t think quite that far …

[Sam Gamgee]

Yeah, so what? Is paying $2.00 for a bottle of “spring” water in a vending machine gouging? I don’t get this current idea that there is some acceptable level of profit for business. I thought America was a free nation that believed a producer can ask for his wares whatever the market will bear?

[Sam Gamgee]

How come if you go to Yellowstone Park it costs you 50% more for a Big Mac than say in Renton, Washington? I went to the McDonalds website to find out. Each McDonald’s franchise is independently owned and each owner has the freedom to charge whatever it is they like? Is McDonald’s gouging because it knows once in Yellowstone Park, consumers have less choice to go somewhere else?

[Tolerance Sucks Rocks]

Fundamentals are oil is 30-40 a bbl tops... Hedge fund speculators are the only reasons its been over that in the past few years... "Irrational Exhuberism" strikes again.

Judging by what I've read, at least 10 dollars of this price is a "fear factor" from things such as terrorists sabotaging oil facilities, natural disasters, etc.

[Tolerance Sucks Rocks]

this price = the current price d-oh!

[Tolerance Sucks Rocks]

Let's hope Canada doesn't nationalize their oil companies, considering how they've done with health care.

[billhilly]

Now there's an old name. How are you?