Posted on 12/01/2008 7:53:58 PM PST by NormsRevenge
SINGAPORE (Reuters) – Oil extended its sharp drop to below $49 a barrel on Tuesday, nearing a 3-and-a-half year low after OPEC's decision to leave output unchanged sent it tumbling a day ago and as gloom about the global economy grew.
Japan's Nikkei average slid 5 percent on Tuesday, with exporters hit by a stronger yen after signs the U.S. economy has been in a recession for a year heightened risk aversion.
U.S. light crude for January delivery fell 53 cents to $48.75 a barrel by 0056 GMT, following Monday's over 9 percent dive to the lowest settlement since May 2005. Oil now hovers near the $48.25 a barrel intra-day low it touched on November 21.
London Brent crude dropped 47 cents to $47.50.
Surging demand from emerging countries sent oil on a six-year rally from 2002, but prices have tumbled since July's all-time high above $147 a barrel as economic turmoil erodes demand in top consumer the United States and other big developed nations.
Producer group OPEC on the weekend put off a decision on whether to deepen production curbs until later this month as Saudi Arabia and other Gulf members called for greater compliance, a delay that sent oil prices tumbling on Monday.
More bearish news could be in store on Wednesday, with U.S. crude oil inventories likely having risen by 1.8 million barrels last week, a third consecutive build, as imports continued to increase, a preliminary Reuters poll of analysts showed.
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Soak up the cheap gas prices while you can, this time next year we’ll be wishing for the Carter administration.
$48.75 I like.
We can’t let the Saudis down in funding world Wahhabism, Chavez and Socialism and heaven forbid....taking the money away from Islamic Jihad in general...
“...We can’t let the Saudis down in funding world Wahhabism, Chavez and Socialism and heaven forbid....taking the money away from Islamic Jihad in general...”
I am more concerned that this temporary drop in price will give the dems cover to stop any new drilling in the USA. In the long term that will be yet another disaster.
I’ve heard from friends that some of the US drillers are putting new wells on hold, waiting to see what the market and congress does over the next quarter.
Three Dog Night
Celebrate, celebrate, dance to the music
Celebrate, celebrate, dance to the music
Celebrate, celebrate, dance to the music
I hope George Soros is losing Money big time.
Well, if oil fell again today, someone better tell the gas stations around here in Southern NH. All the gas prices and diesel prices just jumped by 5 cents last night.
I am seeing gas at $1.72/gal. here in the Tampa area. Never thought I would see it below $2 again in my lifetime!
I saw $1.499 at a couple stations in W. KY earlier today. Anyone know of cheaper areas? (S.E. MO is usually cheaper than W. KY, but I haven’t been that direction recently.)
Mark
The interesting thing about seeing $1.75 here in Tampa is that it’s at stations near the Interstate and Busch Gardens. Normally you expect to see gas a few cents higher in those areas frequented by tourists.
I guess it’s true that every cloud has a silver lining. The bad economic situation around the world really seems to have dampened the demand for energy.
$1.35 in Sullivan Mo.
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