Posted on 10/03/2006 8:46:23 AM PDT by Ernest_at_the_Beach
SAN FRANCISCO (MarketWatch) -- Crude-oil futures dropped as much as 3% to fall below $59 a barrel Tuesday, pulling the benchmark contract to its lowest level in 10 months, with pressure coming from swelling U.S. inventories, a lack of risks to output and doubts that key oil producers will take formal action to reduce supplies and stem the drop in prices.
Crude for November delivery was trading down $1.93 at $59.10 a barrel on the New York Mercantile Exchange, after reaching a low of $58.90 -- a level the contract hasn't seen since November 2005. The contract fell 3% Monday amid speculation that even if Venezuela and Nigeria cut production as they have said they will, it would do little to dent hefty supplies of crude and its products.
(Excerpt) Read more at marketwatch.com ...
Cmon baby!! I want my 1.50 gas again. My SUV is dying for a long roadtrip!!
Let me be the first:
Bush's fault...
I'll still gripe until its a 1.50. Then I'll gripe becase 40 cents of that is state and federal taxes.
And China has reduced oil demand by 9.2%. The hurricane season is finished. Chavez is has reduced production by 50,000 bbl/day perhaps partially because loss of demand from 7-11 stores (?).
Let me be the first:
Bush's fault...
Beat me to it
re: It's Bush's fault
Yes it is, but it's nothing so simple as him having the wondrous power to raise and lower oil prices to suit his political needs. Nope, it's much more impressive than that. It's his ability to cause hurricanes when he needs them, like Katrina and Rita last year. One of the main reasons oil prices are down is that it's been a particularly quiet hurricane season so far as mainland US is concerned. Obviously Mr. Bush knows that another disastrous storm season would not be good in an election year, so he let this one slip by.
</sarcasm>
Shows just how wrong I was the other day thinking it would keep going up.
Good, isn't it? Weeks ago Common Tator predicted the price of oil would drop below $30/bbl. He was quite certain. (It you didn't see the thread, Common Tator is now in the hospital.)
It'll bounce up and down. But the inventories along with newly discovered fields should trend it down.
OPEC never learns, especially the moronic Venenzuelans...the cure for high prices is ...high prices.
If Opec cut production, it would temporairly increase the price of oil. But it would also decrease OPEC's global share. As high prices remained, more Non-OPEC oil would come online. OPECS response would be to cut back to maintain high prices....etc etc..
OPEC is caught in a downward spiral. The more they try to keep oil price high, the more they eventually seal their own doom.
Most OPEC nations are horribly managed. The long period og high oil prices has resulted in bloated government spending. If govts in OPEC have assumed high oil prices, then as oil falls their societies will be plunged into chaos. Countries like Iran, Saudi and Venezuela will no longer be able to fund terror or placate their citizens with lavish goodies.
it was coincidence that oil prices fell from $30 to $10 in 1985-86 and then the USSR fell.
I drive by a Citgo station everyday on my way to work. It is filthy and the gas price is anywhere from 10 to 15 cents higher than the next closest station. I know it is scheduled for a shut down soon. The best part is that for the last few weeks I haven't seen many cars there. Hugo is getting Dixie Chicked.
I think another reason for the price drop is the manipulation the Saudi's tried last week with their warnings of production cuts only caused a temporary bump of a few dollars. Also a quiet hurricane season, the North Slope fields due to come back online 100% and the rhetoric coming out of Venezuela and Iran is getting a little old. Most oil experts see the price of oil at 40-50 bucks a barrel. I think we settle at $55 a barrel which will keep unleaded regular at somewhere between 1.80 and 2.00 bucks depending on where you live. So much for the predictions of $100. Next up the Real Estate crash that never was.....
Well put.
Is it pro or anti ethanol. Myself, I think grains should only be used for making spirits. ;o)
Very pro on growing our own fuel....author is a venture capitalist who has his money involved....but he makes a good case....especially on the cost of producing the ethanol...is doing it using no other fuel than what comes from the feed lot and the grain.....
Unfortuantely, it will wither in interest. Seeing how we have about 3 centuries of known oil deposits to exploit.
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