Posted on 10/10/2008 2:32:15 PM PDT by vrwc1
NEW YORK - The stunning collapse in oil markets accelerated Friday, sending a barrel of crude plunging below $78 as investors grow more pessimistic about resolving a mushrooming global economic crisis.
Oil hasn't been this cheap in 13 months — a rare silver lining for consumers amid a rapidly imploding financial landscape.
(Excerpt) Read more at news.yahoo.com ...
Be patient. Let the rest of the commodities reach their natural level. And they will.
no credit, no speculation because there’s no leverage
A b s o l u t e l y !
It just makes me sick that the whole world pays the price to make the speculators rich.
That’s one happy side effect of the credit squeeze!
Odd as this may seem in the midst of all the financial chaos here in the U.S., the U.S. dollar has actually gotten considerably STRONGER in the last few months against most world currencies. And THAT is what has driven this decline in oil prices.
It’s the same thing driving stocks and commodities down, fear. Funndy thing is, it was the fear of not being able to get it, that drove the price upwards.
Gasoline looks like it is dropping a couple of cents every single day.
Twice as strong? I don't think so. The stronger dollar may have contributed a little, but the rest of the difference has to be due to speculation.
The dollar is getting stronger b/c European banks are buying dollars like crazy - b/c they know that they are in deeper than we are. Hence, the rise of the dollar, hence the fall in oil.
This is actually not good news, though we all love the relief at the pump.
Light, sweet crude for November delivery ended the day $8.89 lower
That's more than a few cents!
@ the pump, I meant.
If you go back over the last few years you'll see almost identical spikes and declines in the price of oil from May to September.
I drove halfway across the country in the aftermath of Hurrican Katrina a few years ago in September, and it was amazing to see the price of gasoline drop almost by the hour as more and more refineries came back on line after the storm.
And speculation is driving it right back down. Amazin’, ain’t it?
So is gas back to $1.99 per gallon now?
Exactly 2 weeks ago, wholesale RBOB was $2.61. Tonight, it is $1.856. Retail will be under $3.00 (way under, in some cases) nationwide in a week-10 days (except Calbania, of course).
Yeah, and I think this is what makes people the most angry. A mere RUMOR or crude price increases and the pump prices jumps 10 cents in one day. Yet, when the crude price drops like a rock, it takes forever to get the pump price back down.
I don't recall ever seeing the price of crude cut in half over the span of a few months.
I wonder how low oil has to drop to get gas under $2.00 again...
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