Posted on 09/16/2006 5:56:55 PM PDT by Chi-townChief
WASHINGTON The recent sharp drop in the global price of crude oil could mark the start of a massive sell-off that returns gasoline prices to lows not seen since the late 1990s perhaps as low as $1.15 a gallon.
"All the hurricane flags are flying" in oil markets, said Philip Verleger, a noted energy consultant who was a lone voice several years ago in warning that oil prices would soar. Now, he says, they appear to be poised for a dramatic plunge.
Crude-oil prices have fallen about $14, or roughly 17 percent, from their July 14 peak of $78.40. After falling seven straight days, they rose slightly Wednesday in trading on the New York Mercantile Exchange, to $63.97, partly in reaction to a government report showing fuel inventories a bit lower than expected. But the overall price drop is expected to continue, and prices could fall much more in the weeks and months ahead.
(Excerpt) Read more at seattletimes.nwsource.com ...
I'm surprised this hasn't become a huge issue. The futures market is complicated and the Dem simps seem to have digested the "Bush and Big Oil" lie quite well. The Repubs need to get cracking on this and frying the Dems for blocking drilling. It's becoming inexcusable.
The only condition that has changed over the past month is the announcement that a few traders from BP were under investigation for manipulating the market. That's when the price slide started....I'm just sayin.
The article is from the beginning of August and Oil went to $78 after it was published. Greed Premium!
Hilliard-Rome Rd?
Well, that machine that Bush and Rove have in the White House is a marvelous contraption. Spin a dial here and prices go up and down. Flip this lever and the economy tanks; flip it the other way and the economy hums.
Back in 2000, O'Bannon suspended Indiana's gas tax as a political gimmick. Gas was close to $2 a gallon, and people were screaming. He won the election, of course--and bankrupted the state even more that he already had.
I can see the NY TImes Headline in October:
"Oil Company Profits Plunge"
Business at worst in years.
Yes comrade! Shall we sing the Internationale as well or just fly the red flag?
I believe all the contracts require delivery, and are delivered on.
They don't just settle up the difference in cash. Oil changes hands at the specified price on the specified date.
So, you're against capitalism, when you're not profiting? Just asking.
Still $3.60 and up in Maui!!!!
Each contract may be delivered, but a speculator can buy a contract low, and sell it to another entity before being delivered on.
1.93 gal Regular Gainesville, VA
I hear you, bro. I work at Trabue and Wilson. I get my gas over at Hilliard-Rome quite a bit. It's nuts.
futures contracts are settled daily, on paper. Not like stocks have a settlement date a few days later. I think futures can be settled with cash but it's gotta be expensive?
Bush's fault.
$1.98 at an Indy Wal-Mart! Now that will tick of the dimmy's! Thanks Karl Rove!
Sorry, I don't know the words. But if you could hum a few bars ... And while you're at it, take a hum on this ...
Just not by the parties that originally bought or sold them. That would actually mean doing some work. Far better to buy and sell pieces of paper that are backed by rumor, illusion, lies, and fear.
Did you compete in the Logical Olympics? With a leap like that, you'd be sure to bring home gold.
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