Originally posted by: JD50
Originally posted by: Engineer
Originally posted by: JD50
So what made the price of oil drop?
The fundamentals, as I've pointed out in this thread several times. Oil inventories came in at a 6 million barrel upside suprise and gasoline came in at 2.5 million barrels to the upside. Useage is down to a 5 year low with 3.5% less useage than last year (and has been less each month of this year than the same month last year, first time since 1991). The dollar has somewhat flatlined but still teetering either way.
Oil was already starting down on the above information about a week (or so) before. Iran tested the missles and it started back up, but once the missles firing stopped and there was talk of an embassy/negotiations with Iran, it started falling again. The talk of negotiations with Iran had far more effect on oil prices than the symbolic cancelling of a executive order on offshore drilling, that did nothing.
Iran testing missles, did nothing, talks of an embassy/negotions with Iran, did nothing. Yet you admit that it DID effect the price of oil. Plenty of people here have argued that Bush canceling the executive order on offshore drilling did nothing, therefore it couldn't have effected oil prices.
Obviously, just because something doesn't directly effect supply or demand, doesn't mean that it won't effect the price of oil.
His own speculation is exempt from his own rules.
