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.
http://www.freerepublic.com/focus/news/2715380/posts?page=7#7
They have thousands of large storage and distribution warehouse and a highway of ships coming and going to china, but they still have it on their shelves when they sell it. Unless you special order it from the warehouse a few miles away. Which still belongs to them and they have physical control of when they sell it. Hell they even have real insurable interest.
It's sign we're headed into a double dip recession.
We can expect oil prices and inflation to take off again when economic growth starts picking up again.
The demand was higher in 2008:
Or it is a sign investors are herd animals mindlessly stampeding one way when news is good then mindlessly stampeding the other when news is bad.
The current slow down has more to do with the earthquake/tsunami in Japan then anything else.
The parts from Japan there were in the supply chain prior to the earthquake have been used up and the new parts supplies have been disrupted by the events in Japan after the earthquake.
The result has been a lot of big manufacturing firms in the USA, who get at least some parts from Japan, have slowed or temporarily stopped production until the kinks in the supply chain out of Japan finish working themselves out.
Because of this slow down, US unemployment figures have been worse then expected and so the Market is in stampede mode.
You are talking about the way gasoline is sold to the consumer.
But Wal-Mart buys the products they sell in similar methods to the way a refinery buys oil.
My thoughts exactly.
The unemployment rate is 2 or 3 times higher than it was is 2008. That’s a lot of people not driving to and from work everyday.
No jobs also = less heating and cooling of homes.
Demand is down, just based on these two factors.
Has there been a lot of terrorism from them during the gas price run-up?
I doubt the death of OBL has anything to do with it.
Or, the Saudis just realized that we can snuff them at any time.Let's make sure they can read that, good point refermech!
Thats ridiculous!!! It would take the Saudis at least a year to increase their oil production enough to alter oil prices. This is all about the Federal Reserve and QE2. It looks like there won't be another round of quantitative easing.
Damnit. The day after I doubled down on my shares of COP. Figures. My timing always sucks.
Metals are getting hammered today. Sliver has dropped 20% in the last week. Dollar still falling, interest rates still falling, long term bonds falling. Very weird.
Glen Beck said that people who have not yet invested in gold or silver should watch the market. He said that there would be a sharp drop before the collapse of the dollar and that was the time to jump into the market, because after that, the dollar would collapse and the gold and silver would start moving back up.
I hope it stays high to be honest. It shows Obama’s economic plans in action in simplest terms even for a liberal to understand.
It's actually even weirder, long term bonds have been rising sharply with the dollar falling. We don't want your currency but we really want your bonds backed by that same currency?
Make them pay and take physical delivery,
LOL - Sure, what could go wrong with that law?
Seriously guy, you need to stop printing such nonsense until you spend some serious time in real life market study. - you sound like Nancy Pelosi.
With your idea the prices would lift like a balloon and the market pricing would be MORE unstable. - Its been tried with other commodities, but you,like most others, don’t really know that.
Also, try to remember that for every speculator (whatever that is) that wins on a futures delivery or option thereon, there is exactly one who lost that same amount on that same option.
I would never buy crude oil. You couldn’t take it anywhere. It’s always belching and making fart noises with its armpit. And it’s never even seen a linen napkin. Give me cultured oil every time.
Did you know that shoe sales go up during hard recession?
Yep, people begin walking and using public transportation.
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