Posted on 07/06/2009 5:29:34 AM PDT by Red in Blue PA
Oil fell below $64 a barrel on Monday and touched a five-week low, pressured by doubts over the prospects for a global economic recovery.
The U.S. jobless rate reached a 26-year high and Euro zone unemployment is at the highest in a decade, reports showed last week.
Oil fell even after militants attacked oil installations in major African exporter Nigeria.
"It's a definite break to the downside, probably sparked by the poor economic data and stalling stock markets," said Christopher Bellew, a broker at Bache Commodities in London.
(Excerpt) Read more at cnbc.com ...
Unemployment is near record highs, the economy is in the toilet, and oil rallies. SOmething is definitely wrong with that picture.
And someone sneezing in Nigeria does not justify a price increase.....what % of the world's oil come from Nigeria?
As long as oil supplies are tight, then someone sneezing in Nigeria could be used to justify a price hike. The only way to stop this kind of BS is to increase our domestic supply of oil and cause a glut so that the price drops. Reagan did this and by 1986 we were paying $8 a barrel for oil.
I haven’t put gasoline in my gas guzzler since April 2nd. Take that, economy!
Compare teh supplies now to what they were in 2000, along with economic growth, output etc.
The price of oil should be in the 30’s.
Reagan got these results because OPEC was adamant that they would emasculate US oil production capability, even if it meant selling their own oil at a sacrifice price. Not because US production threatened to add enough oil to the market to produce a true glut.
That is also another form of speculation. If it worked then, it will work now. Of course, we have a government that is literally hell bent on marching us back to being a fourth world country.
Yet another sign that we are in a deflationary spiral and not an inflationary one.
Crude is in the middle of a 15% pullback right this minute, and, bar exogenous events, looks to be headed for $60 shortly. Which is about right, if you believe (for example) Brenner's economic value study of crude vs the derivative of the GDP curve.
we got cheap oil in the low 80’s because the saudis jacked up production in order to kill the nascent alternative fuels industry.
they succeeded that time.
I don’t think they will succeed this time because there is not enough spare capacity.
however, current & future demand doesn’t warrent these oil prices,
opec efforts to hike prices merely cut off the economic rebound of the industrialized countries. the result is lower prices as economies falter
Good, it is about damn time!!!!
Hope you added fuel stabilizer.
what if they threw a summer driving season and nobody came?
In western NY the prices have scarcely budged. They go up fast enough...
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