Posted on 10/06/2008 4:11:32 PM PDT by DGHoodini
Below $90 at beginning and end of US trading day.
$84.99 ppb...Here we come!
It’s Bush’s fault.
Actually, who cares where "here" is, as long as it's lower here.
This reminds me of George Carlin spoofing on the weather guys reporting the temperature at the airport. Who lives at the airport?
With all that barren and sunny outback, isn’t there any push to build Solar Panel factories, and collector farms?
Looks like the average price at the pump today is $3.48 for regular. The last time oil was at this price range ($88/bbl Feb 2008), the average price at the pump was $3.10 or so. Will we see a quick decline in gas prices or a slow death march? Stay tuned.
QUOTE:
And oil accounts for a big chuck of Russian foreign exchange.
This is what quashed the Soviets in 1988. After their big arms build up to counter Reagan, the petrolium market crashed ($20 to $10) when OPEC dumped massive amounts of oil to counter the US’s synthetic fuel project. The Soviets banked that Oil would always be there to fund their weapon projects and prop up their failing system.
The same concept is applying now, but this time I can see either Iran, Russia or Venezuela trying to start chaos to drive the price back up.
They would hate to see McCain/Palin, especially if they follow through with their energy plans.
$3.89 in Charlotte, still feeling the Ike aftereffects.
In any event, the lowering price of oil is doing a number on the Russian economy. From Pravda back in Sept 9, as the price slump was getting started :
The Russian stock market went lower than 1,400 points due to the reduction of the oil prices and the ongoing of outflow of capital, which investors currently conduct. Finance Minister Aleksei Kudrin added more fuel to the fire when he said that Russia’s oil companies would not be provided with an additional reduction of tax burden.The RTS index dropped by 7.51 percent to 1,395.11 points. This level was previously reported in June 2006. MICEX index dropped by 9.08 percent to 1,158.07.
The price of a barrel of oil reduced to $104.23, having lost $1.25 in comparison with Monday.
Rosneft’s shares slipped by 9.54 percent, Gazprom – by 8.47, Lukoil – by 9.29 and Surgutneftegaz – by 6.16 percent.
Each of the past three days, the Russian central bank injected over $10 billion into the money market, and also moved to prop up the ruble. The Kremlin yesterday lent the country's three largest banks $44.9 billion. Thanks to the oil and gas windfall of the past few years, Russia has built up a $573 billion reserve war chest that can tide the financial system over for a while and avoid a rerun of the 1998 crisis.Not forever, especially if oil prices continue their fall. Russia's economy is hugely dependent on natural resources. In good times, the Kremlin pocketed the billions and didn't worry about pushing economic reforms. The outside investment needed to diversify was discouraged by the Kremlin's backsliding on the rule of law. Now the drop in crude prices is squeezing the country's blue chips and the Kremlin's coffers, even though on the current budget the Russian state will break even with oil at $70 a barrel or above.
Regular was $4.03 in Wasilla, Alaska today, and it figures as always that on my way home the price fell 5 cents just a couple of miles from my house.
I could almost predict the first shots will be fired by Iran just as soon as oil does drop below $70 a barrel.
At that point Iran may find itself in a similar position to Japan in mid-1941. They would need to either go to war, or wither away as their oil revenues were no longer enough to support their economy (or be overthrown in revolution at the point where they could no longer support their welfare state).
I am beginning to think that Iran is becoming the perfect political unrest barometer of the world.
Every time there is something that comes along and scares them they start a rhetoric or do some stupid antic, latest being this US aircraft being detained.
So very predictable Iran, you are as children in a day care center.
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