Oil falls to six-month low of $60 in Asian trading

AP via Houston Chronicle ^ | Nov. 11, 2008, 5:53AM | Associated Press

[thackney]

Oil prices fell to near an 18-month low of $60 a barrel today as hopes waned that a huge Chinese spending plan will do much to avert a prolonged slowdown in the global economy.

Light, sweet crude for December delivery was down $2.27 to $60.14 a barrel in electronic trading on the New York Mercantile Exchange by midday in Europe. The contract overnight rose $1.37 to settle at $62.41.

In London, December Brent crude fell $2.13 to $56.95 a barrel on the ICE Futures exchange.

Oil closed at $60.77 on Nov. 6, the lowest closing price since March 2007, and has fallen about 59 percent since reaching a record $147.27 in mid-July.

Analyst Olivier Jakob of Petromatrix in Switzerland noted the high volatility accompanying falling prices.

While the Nymex contract is now trading near first-half 2007 prices, the difference then between daily highs and lows was around $1.50 a barrel, while now the average daily range is around $5.50 a barrel with recent daily peaks at $9.50, Jakob said.

Oil prices and stock markets jumped Monday after China said it planned to spend $586 billion in a bid to spur economic growth. But pessimism soon returned as investors focused again on a swooning U.S. economy, which faces its worst recession in decades.

Most Asian and European stock markets fell today, following the lead of the Dow Jones industrials average, which dropped 0.8 percent Monday. Japan’s benchmark Nikkei 225 index slid 3 percent today, Hong Kong’s Hang Seng index dropped 2.9 percent, while London’s FTSE and Germany’s DAX indexes were both down around 2 percent.

"The market is realizing that package can’t prevent us from sliding into the mess we’re heading toward," said Toby Hassall, an analyst with Commodity Warrants Australia in Sydney. "The economic outlook is pretty bleak."

[NetSurfer]

title should read 18 month low?

[thackney]

Seems like it should, but that is the title they used.

[Red Badger]

Obama’s fault!......no, wait..........

[THX 1138]

Bail out for the oil companies...

[LeoOshkosh]

In July of this summer, when oil was at $147 per barrel, I knew that price was not sustainable. Everyone was calling for the end of the SUV and many bought the Toyota Prius at outrageously high prices.

I opted to buy an SUV at a huge discount....betting that oil prices were artificially inflated. The SUV that I bought was almost the same price as the Prius.

Amazing.

[KarlInOhio]

Bail out for the oil companies...

Bail out Saudi Arabia and Iran.

[New Perspective]

Now we need to see the gas prices drop as fast as they went up when oil went up. But I am not holding my breath.

[conservativeinferno]

Gas in my area is $1.99. Last time oil was $60 PB the price was much lower than $1.99. Why?

Is it b/c there is plenty of oil but not plenty of gasoline?

[THX 1138]

Bail out Saudi Arabia and Iran.

...and Venezuela and Russia.

Then the world will love us...

[jwparkerjr]

It's going to be interesting to watch the Obama supporters revel in the declining gas prices, not realizing they are not dropping because of anything Obama has done or is doing, but rather because the world's economy is on the skids. Other prices will fall too as the economy declines and sellers try to get the attention of buyers with less and less money to spend. On the surface, it will look to most Obama voters that their man is working a miracle, little realizing what price the economy overall is paying for the apparent respite.

And the truth is, I don't think McCain could have done any better with the economy. We've simply come too near the edge to pull back and the only course now is over the edge and directly into whatever lies below. Pretty scary.

[thackney]

Last time crude oil was down to $60, gasoline was much higher.

[Coldwater Creek]

The minute Obama’s pen hits the Drill, baby Drill executive order, you'll see 4$ plus at the pump.

[ikka]

Where are the “peak oil” liars and the “oil at $200” analysts?

[thackney]

Gasoline prices are dropping faster than they climbed earlier this year. See chart in post above.

[HighlyOpinionated]

So why isn’t gasoline about a buck fifty a gallon?

Has to go lower because Obama is supposed to pay to fill my gas tank and I know he’s a cheapskate who doesn’t believe in charity giving.

Don’t TAX me bro’ — it’s gonna start being Obama’s Fault.

And we oughta consider letters to the editor blaming him. Weekly. All of us. Check online at your local newspaper for a link to letters to the editor. And email baby, email.

[LeoOshkosh]

It is too bad that you couldn’t store your own gasoline in large volumes....

[thackney]

So why isn’t gasoline about a buck fifty a gallon?

When gasoline was last near $1.50/gallon, crude oil was in the $30.

[netmilsmom]

I have a question for you.

Can you explain what makes a Summer grade of gas? My hubby asked and I have no clue.

[org.whodat]

Bail out for the oil companies...

You say it as a joke, but it would not surprise me a bit if some of the scum futures traders were not wanting one. Oil will go lower!!