Posted on 09/06/2006 12:04:02 PM PDT by kellynla
LONDON (Reuters) -- Oil prices tumbled more than a dollar Wednesday, falling below $68 a barrel and breaking a key support level.
U.S. light crude for October delivery fell $1.15 to $67.45 a barrel on the New York Mercantile Exchange.
For U.S. crude, the 200-day moving average, considered a funds buy/sell trigger, was effective around $67.50.
Prices have fallen by more than $11 from a record of $78.65 hit on Aug. 8 when concerns of supply disruption ran high.
Since then, diplomatic efforts to try to resolve Iran's dispute with the West have eased worries of possible disruption of the OPEC producer's exports.
Iran failed to meet an Aug. 31 decline to halt uranium enrichment or face the threat of sanctions.
Analysts had feared Iran might halt oil exports in response to any sanctions, but traders view the fact diplomacy is still under way as an indication disruption is unlikely for now.
(Excerpt) Read more at money.cnn.com ...
The one consistent characteristic of energy mkts over time.
You wouldn't be taking it anywhere that cost less, so where is the benefit?
I agree. The Bush thing was a joke about how every event on earth from hurricanes to the price of oil is controlled by one Texan who temporarily occupies a political office.
Not to mention Mr. Rove and his weather-control-cum-energy-price manipulator, heh heh heh...
Right, but that will not lower the price of energy.
Dang! Guess if I want cheap gas I'd better move back there???? $2.62 here in Tampa area.
I wonder if anyone could even try to corner the oil market. Maybe there is a way to leverage into it, but it is huge and would eat anybody if they guessed wrong and not even burp.
I think the traders realized they could leverage bad news to the hilt. But now the hurricanes ain't a-hitting and the Iranians are still stonewalling and the UN is still being the UN, so the fear factor is deflating.
Yep. The climate has changed. For the time being maybe we are going to see a gradual easing in commodities. Something could come along at any time to get the squirrels barking again, of course. That Iranian squirrel for instance.
Amen. Until it returns to about $.99 per gallon, the price of gas is UP.
I'm no investment adviser, but breaking a price-support barrier, like the 200-day moving average, just might trigger a sell-off by speculators. I think that the expectations of speculators is one of the components of the recent price volatility. Take that away & the price might fall by a significant margin.
No transportation costs! You probably pump direct from the tanker!
Too big, and too much national politics involved. OPEC tries to regulate using production quotas -- "Try" being the key word here.
Consider yourself fortunate-- here in Bethel, Alaska it's $4.45 and will stay that way till the oil barge comes in the end of next May- sheesh!
Yep, not even OPEC can do it anymore.
Good, most spectulators raised the price for no good reason, most of the early guys are already out so they made money, now, the guys that sold short will and the stupid investor that waited too long will lose making the market properly corect itself and work.
We made a lot of money delivering it to the pumps for $1.00 only to have Al Gore and Clinton then want to put a 50 cent tax "for the children" on it. When you make a lot of something, the piece price should reduce since the cost of making reduces - like how china is running.
Clinto sent Richarsons to the UN noting Russia could not pay off its debts at $20.00 a barrel and asked OPEC to increase the price to 35.00 barrel. It went nuts along with the looney left and enviro-wacko's and here we are.
Now the adults need to take back over.
You have a vivid imagination.
No, I heard Richersons interviewed on meet the press.
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