We Voted!
You Get to Donate
Monthly and End FReepathons
Sponsoring FReepers leapfrog0202 and another person will contribute $10
Each time a new monthly donor signs up!
Get more bang for your buck
Sign up today
Save Our Precious Lazamataz
Posted on 05/05/2011 8:40:46 AM PDT by OrangeHoof
The price of crude oil has dropped sharply this morning with both Brent Crude and West Texas Intermediate Crude dropping over $4/barrel.
As of 11:10 EDT, Brent Crude has sunk $4.34/bl to $116.41 while WTI Crude has dropped $4.67 to $104.57/bl.
Oil was too high relative to supply, anyway.
The three “B”’s
A bit of a bubble bursting.
My opinion is that the US economy reflexively contracted (to the price run-up) and the demand shrank enough to pull back on the prices a bit. The dollar is still epically weak, so there’s no short term relief in sight. Just my opinion, worth every cent that was paid for it.
I think Bin Laden’s capture has much to do with it. Now he’s dead, his organization has just been fractured and this will lead to a lot less terrorism from them. They are all likely scrambling for power and they will be disorganized for some time.
quite possible
I tend to agree. The change isn’t significant enough to see any difference either at the pump or in the price of goods.
Silver dropped last Friday so this is not completely unexpected (lol!). Will we see gold drop in price, too?
Have interest rates gone up a little? Have they slowed down the printing presses on all of that monopoly money they are producing?
I don’t know, all I can see is serious instability. Just as one crisis passes another one pops up. Birth pangs.
The traders have read the writing on the wall. Obama was about to put a pin to their bubble in order to save his political arse, and they are getting out ahead of it. Look for Eric Holder investigations into “manipulative” trades and tough new rules requiring traders to take physical custody of the oil. The savvy ones will cash out on top before all that starts happening.
Is this because Obama just won the war on terrorism by bringing down the Islamic wall?
Seriously : oil and silver they went up too high too fast and need a correction but will be increasing again.
Or, the Saudis just realized that we can snuff them at any time.
But, but...why arent’t the evil speculators keeping it going higher? I thought they controlled the price!
Seriously, this is a reaction to the employment report. A forecast of lower economic activity indicates lower demand for oil going forward.
Markets adjust to the news they receive. For today, the big news is the above. We’ll see what tomorrow brings.
Dropped 6¢ here in SE NM overnight. Of course, the price will go up after Obama's F&WS shortly declares a small lizard endangered which will put 20% of America's O&G off limits for drilling.
the post-it protest and anti-Obama campaign put too much pressure on them
Do you honestly believe that Wal Mart buys only for immediate delivery and never secures orders for future delivery?
Stock market...down. Commodities...down. It sounds like there won’t be a QE3. If thats true then you can count on interest rates to go up because if the Fed does not print money then the Treasury will have a hard time selling bonds. This will put pressure on Congress and the White House to reduce the deficit.
In other words, get ready for big tax hikes!!!!!!
I seem to recall that in 2008, when gas prices hit $4 per gallon, the bbl price of oil was as high as $135 per. Seeing pump prices above the 2008 previous highs, with $115/bbl prices (before this downward move) should tell you there’s more to it than simple market futures that dictate the pump price. That’s where I figure the decreasing value of the dollar plays a big role.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.