Oil Prices Drop Below $70 a Barrel

Yanoo ^ | 29 August 2006 | staff

[greasepaint]

winter gasoline blends, are easier to make,
so usually cost less.

related, but not discussed here,
is that the price of fuel ethanol
has dropped a bunch,
from five bucks, to 2.28 September future

[RightWhale]

But, incomes are up for the first time in six years.

What does it mean?

[Smile-n-Win]

It's silent on FR when it goes up

Is it?

[ButThreeLeftsDo]

Watch that Natural Gas, as well....

http://www2.barchart.com/mktcom.asp

[mysterio]

The air is finally leaking out of the oil bubble.

Don't bet on it.

[ErnBatavia]

$3.199 yesterday in the Coachella Valley...down from 3.299 around 3 weeks ago.

[B Knotts]

We'll see about that. There is no fundamental reason for oil to be $70+ a barrel, and the only surprise is that such prices were sustained as long as they were.

[Perdogg]

:)

[Gvl_M3]

the price of fuel ethanol
has dropped a bunch,
from five bucks, to 2.28 September future

Now that Ethanol is the mandated additive to get away from MTBE, this has a large impact on the price of gasoline. If a gallon of gas uses 10% ethanol, that is a $0.27 drop right there.

[Redcloak]

It's Bush's fault!

[rockinonritalin]

I have a question: Oil prices are rising on tighter supply versus a rising demand, but also on a speculative fear of even further threats to the supply (e.g. hurricaines, terrorism, pipelines, etc.). Meanwhile, consumers are somewhat quietly reducing their own gas consumption in response to the higher price at the pumps. (Or are they?) What is the possibility that there will be a convergence of the high speculative price and the sudden realization that demand has tailed off considerably resulting in a "correction" in the oil market? How much of a potential correction is there in the current price?

I realize that this question considers only the demand coming from the US consumer and does not consider demand from emerging markets, like China, which may still increase despite the rising prices. Thoughts?

[Beagle8U]

You sound upset over oil prices, was your heating subsidy cut?

How about food stamps? Oil prices drive up the cost of food too, especially if you have to pay full price like everyone else.

[Peach]

Using my Kroger card I can get gas for $249. Not that the media will ever admit that prices have come down.

[Grampa Dave]

That is one heck of a drop.

A younger relative who does a lot business with gasoline refineries said that there should be another significant drop after Labor Day.

[Grampa Dave]

Have you been checking the prices that other Freepers have been posting in other states.

We are still paying for the MTBE and botique gas blends as well as paying California sales tax on each gallon, which may include federal taxes.

[Coop]

Welcome. I don't think you're going to be particularly happy on this forum. We don't like nanny states.

[Grampa Dave]

The price variance is incredible. We have all types of State taxes for road work which never gets done.

Then we have a Ca sales tax 7.5%+, and that may be based on the gas plus state and other taxes.

[RightWhale]

Oil is down again today. The topical question should be whether this price drop will eventually cause a recession in the oil industry.

[VeniVidiVici]

Off topic but has anyone noticed that Mobil has started to change their price spread on regular to super? My local station was charging a .32/gal difference today.

Twenty a gallon is a rip. Thirty-two cents is thrust the blade in a turn.

[Coop]

The topical question should be whether this price drop will eventually cause a recession in the oil industry.

... exacerbated by evil George W. Bush's draconian economic policies, thereby further punishing minority children and senior citizens!!

How's that? I'm auditioning for a position with the DNC writing press releases.