Oil bubble shows sign of bursting

NECN ^ | 6/3/2008

[B Knotts]

This may or may not be the pop, but it's looking more and more like maybe it is.

[Eric in the Ozarks]

Yeah. Back to the good old days of $100 crude.

[B Knotts]

If...and that’s a big “if”...the speculators conclude that the game is over...it will go far below $100.

[Jet Jaguar]

BTTT

[RightWhale]

The 136 is looking like a spike. Go back a month and find 115, which was exciting at the time. Halfway back from breathless to understandable.

[Bloody Sam Roberts]

Gasoline prices at the pumps, which often lag behind oil prices,

On the down slope, yes.

There is no appreciable lag when the price is rising. Price rises are nearly instantaneous. Price decreases at the pumps take weeks.
Wonder why that is.

[RayChuang88]

I think we will see a "bubble burst" because at its current price, oil becomes an increasingly elastic (price sensitive to consumers) commodity. Don't be surprised if the price of oil drops under US$100/barrel by the end of this summer--and could crash even further this fall.

[Brilliant]

I don’t think it’s going to “burst.” It will probably stop growing so fast for a while.

[shineon]

I think it’s the same reason that I have to go over and over a wrinkle after I’ve ironed one into my shirt.

[Yo-Yo]

There is no appreciable lag when the price is rising. Price rises are nearly instantaneous. Price decreases at the pumps take weeks.
Wonder why that is.

"Well, it's because we purchased that crude oil weeks ago at those prices, and it takes time for it to get through the refining 'pipeline' so to speak, so the price of gasoline you pay today reflects what we had to pay for crude when it entered the system."

</Evil Oil Apologist>

[Proud_texan]

"Price decreases at the pumps take weeks."

I used to think that but then I looked at the historic price of crude vs. gas at GasBuddy.com. Unless they're cooking the books the price at the pump is very, very close to the price of oil with the exception of May, 2006. My guess is that during that time period there was a refinery problem (something blew up, etc.).

Worth checking out.

[Bloody Sam Roberts]

...what we had to pay for crude when it entered the system.

I got something crude (right here) I'd like to enter into their 'system'.

[shineon]

lol

[elizabetty]

Has anybody done research to see if George Soros is involved in this?

He made himself rich speculating AGAINST the US dollar so why would he not help drive up oil prices in an effort to get Obama in the White House?

[B Knotts]

Well, now he’s trying to get Congress to pop the bubble, so my guess is he already made his money in oil, and is now out of the market, or is shorting oil.

[vpintheak]

When was that, about 6 months ago? :o)

[snoringbear]

“If...and that’s a big “if”...the speculators conclude that the game is over...it will go far below $100.”

And, rightfully it should. However, what may be different than the run down following the oil embargo of the 70’s and early 80’s is our government, you know the one, the one that's here to help us? It's my hunch that this time when prices eventually do drop, there will be tax adder attached so to artificially keep prices high. After-all, the Dem's don't want “gun totting bible thumping” great unwashed to start driving those SUV’s and pickups again...

[BlazingArizona]

There's one way to pop the bubble immediately: remove the barriers on offshore drilling and nuclear construction. The fact that "it would take ten years to build anything new" would not prevent the speculative bubble from popping at tomorrow morning's market open.

[B Knotts]

I agree.

[Former Dodger]

I’m pretty sure Soros is behind this, but as rich as he is, I’m sure that he has covered his tracks well.

He’s a commie and wants nothing more than to embarrass our government, if the dims win in November (GOD FORBID!) the prices will tumble and the dollar will strengthen because of his influence, he doesn’t care about losing money (see “move0n.org”), only about his left wing agenda.

I’m not sure who is more evil: Soros or Putin.