Oil drops to 17 month low

[Whoozyerdaddy]

Everyone said it would go back UP after the elections. What gives?

LONDON (Reuters) - Oil fell toward $55 on Friday, hitting its lowest level since mid-2005 driven by fund selling across commodity markets on concern of an economic slowdown in the world's largest energy consumer the United States.

Oil drew further downward momentum from high U.S. oil inventories and ahead of the expiry of the front-month U.S. crude contract at the close of trade on Friday.

U.S. crude was down $1.01 at $55.25 a barrel at 1327 GMT after hitting its lowest level since June 14 last year at $54.86. The price has fallen over 29 percent from the record of $78.40 in July.

I guess that "drive for five" is on hold for now. Actually, this article seems to indicate that the price of oil is a market driven factor and not arbitrarily set by the Bush administration or evil oil companies. Who knew? Ya learn something new every day.

Good news though. (Especially for those of us who heat our homes with oil) $40-45/barrel would be just about perfect.

 

[Aimster]

my "truck" gets 17mpg average. This has saved me 20-30 a week. I love it.

 

[Craig234]

If you were a liberal, you would understand that there can be a combination of factors, it's not entirely either/or.

It's common sense that if gas prices affect votes, then the White House, whoever is president, would have an interest in trying to push them where it helps them, if they can, for elections.

The difference is that this White House has a uniquely pro-oil president and vice president. It would be a long post to get into the long history there. It doesn't prove the facts about what has happened with gas prices and elections, but your attempt to 'prove' that there is no political influence on gas prices is utterly lacking.

The huge energy gift bill (tens of billions in taxpayer money as subsidies for the oil industry) from Bush was a problem regardless, and certainly created some incentive for the oil industry to owe Bush a favor. How much he got one requires something you may not be familiar with, analysis of the facts.

 

[Arkaign]

Originally posted by: Whoozyerdaddy
Everyone said it would go back UP after the elections. What gives?

LONDON (Reuters) - Oil fell toward $55 on Friday, hitting its lowest level since mid-2005 driven by fund selling across commodity markets on concern of an economic slowdown in the world's largest energy consumer the United States.

Oil drew further downward momentum from high U.S. oil inventories and ahead of the expiry of the front-month U.S. crude contract at the close of trade on Friday.

U.S. crude was down $1.01 at $55.25 a barrel at 1327 GMT after hitting its lowest level since June 14 last year at $54.86. The price has fallen over 29 percent from the record of $78.40 in July.

I guess that "drive for five" is on hold for now. Actually, this article seems to indicate that the price of oil is a market driven factor and not arbitrarily set by the Bush administration or evil oil companies. Who knew? Ya learn something new every day.

Good news though. (Especially for those of us who heat our homes with oil) $40-45/barrel would be just about perfect.

Heh, well admittedly, it's hard to overcome the multitude of other factors in terms of fixing the prices. The oil companies are still ludicrously happy even with $45/barrel oil.

But look at the text in bold. The over-respected and much referenced traders are betting that the economy is going to continue it's slide. Housing has already taken a beating, the job market is dominated by low-income service work (not to mention federal employment figures count incarcerated individuals as 'employed', which is a cheap scam to skew the figures, if you ask me), the auto industry and domestic manufacturing presence in the US is on thin ice, etc. And now that the Democrats have congress, I'm sure corporate crooks are shaking in their crocodile boots all over the country, wondering if they can throw enough money at them to buy them off just like the Republicans. Put together, it doesn't bode well for the future of the US economy, so the traders may actually be on to something here.

In the end, no single factor decides 100% economically, it's a maze of overwhelming complexity. The traders cannot control anything outside of what they are willing to risk. If supply suddenly drops, or demand suddenly increases, then many futures traders will lose their asses on this hedging. Wait and see as always.

 

[Strk]

Originally posted by: Whoozyerdaddy
Everyone said it would go back UP after the elections. What gives?

LONDON (Reuters) - Oil fell toward $55 on Friday, hitting its lowest level since mid-2005 driven by fund selling across commodity markets on concern of an economic slowdown in the world's largest energy consumer the United States.

Oil drew further downward momentum from high U.S. oil inventories and ahead of the expiry of the front-month U.S. crude contract at the close of trade on Friday.

U.S. crude was down $1.01 at $55.25 a barrel at 1327 GMT after hitting its lowest level since June 14 last year at $54.86. The price has fallen over 29 percent from the record of $78.40 in July.

I guess that "drive for five" is on hold for now. Actually, this article seems to indicate that the price of oil is a market driven factor and not arbitrarily set by the Bush administration or evil oil companies. Who knew? Ya learn something new every day.

Good news though. (Especially for those of us who heat our homes with oil) $40-45/barrel would be just about perfect.

It was really just Dave saying that, especially that "drive for five" nonsense. So everyone? Not really.

 

[EagleKeeper]

Are the oil companies now going to keep the prices low to embaress the Dems for accusing them of lowering prices to favor the Repub?

Spin doctors to the walls.

They are already gearing up to buy the WH in 08.

 

[jlbenedict]

Prices have been rising at the pump for the past two weeks here.

 

[Whoozyerdaddy]

Originally posted by: Strk

Originally posted by: Whoozyerdaddy
Everyone said it would go back UP after the elections. What gives?

LONDON (Reuters) - Oil fell toward $55 on Friday, hitting its lowest level since mid-2005 driven by fund selling across commodity markets on concern of an economic slowdown in the world's largest energy consumer the United States.

Oil drew further downward momentum from high U.S. oil inventories and ahead of the expiry of the front-month U.S. crude contract at the close of trade on Friday.

U.S. crude was down $1.01 at $55.25 a barrel at 1327 GMT after hitting its lowest level since June 14 last year at $54.86. The price has fallen over 29 percent from the record of $78.40 in July.

I guess that "drive for five" is on hold for now. Actually, this article seems to indicate that the price of oil is a market driven factor and not arbitrarily set by the Bush administration or evil oil companies. Who knew? Ya learn something new every day.

Good news though. (Especially for those of us who heat our homes with oil) $40-45/barrel would be just about perfect.

It was really just Dave saying that, especially that "drive for five" nonsense. So everyone? Not really.

LMFAO... If I had the drive and energy I would go back and dig through all those pre-election threads and quote everyone who is NOT Dave that said Bush/Republicans were engaged in some sort of conspiracy to lower oil prices to swing the election. (The other part of my comment that you are apparently ignoring)

 

[catnap1972]

Originally posted by: Whoozyerdaddy
Everyone said it would go back UP after the elections. What gives?

And yet the price at the pump continues to creep back up daily (at least around here)--hmmm.....

Good news though. (Especially for those of us who heat our homes with oil) $40-45/barrel would be just about perfect.

What makes you think they're necessarily going to pass the decrease along to you?

 

[Arkaign]

Originally posted by: catnap1972

Originally posted by: Whoozyerdaddy
Everyone said it would go back UP after the elections. What gives?

And yet the price at the pump continues to creep back up daily (at least around here)--hmmm.....

Good news though. (Especially for those of us who heat our homes with oil) $40-45/barrel would be just about perfect.

What makes you think they're necessarily going to pass the decrease along to you?

QFT!

Let me know when you see $1.60 gas to go along with that $40 oil

 

[Whoozyerdaddy]

Originally posted by: catnap1972

Originally posted by: Whoozyerdaddy
Everyone said it would go back UP after the elections. What gives?

And yet the price at the pump continues to creep back up daily (at least around here)--hmmm.....

Good news though. (Especially for those of us who heat our homes with oil) $40-45/barrel would be just about perfect.

What makes you think they're necessarily going to pass the decrease along to you?

They are. My oil bill has reflected a lower cost per gallon in each of my three fill ups so far this winter.

And I don't know where you live but the price of gas is trending DOWN here.

According to gasbuddy.com, average price for gas in Alaska was 2.65 a month ago... $2.54 today with some outlets in the ~2.30 range.

 

[Chadder007]

Hmmmm and yet its getting higher at the pumps around my area. (10 cents this week) I bet they release another all time high in revenues at freaking Exxon.

 

[Sheik Yerbouti]

Gas went up 6 cents a gallon last week, and just went up 6 more cents during lunch today. But that's probably my over active liberal imagination.. :disgust:

 

[1EZduzit]

Originally posted by: Whoozyerdaddy

Originally posted by: Strk

Originally posted by: Whoozyerdaddy
Everyone said it would go back UP after the elections. What gives?

LONDON (Reuters) - Oil fell toward $55 on Friday, hitting its lowest level since mid-2005 driven by fund selling across commodity markets on concern of an economic slowdown in the world's largest energy consumer the United States.

Oil drew further downward momentum from high U.S. oil inventories and ahead of the expiry of the front-month U.S. crude contract at the close of trade on Friday.

U.S. crude was down $1.01 at $55.25 a barrel at 1327 GMT after hitting its lowest level since June 14 last year at $54.86. The price has fallen over 29 percent from the record of $78.40 in July.

I guess that "drive for five" is on hold for now. Actually, this article seems to indicate that the price of oil is a market driven factor and not arbitrarily set by the Bush administration or evil oil companies. Who knew? Ya learn something new every day.

Good news though. (Especially for those of us who heat our homes with oil) $40-45/barrel would be just about perfect.

It was really just Dave saying that, especially that "drive for five" nonsense. So everyone? Not really.

LMFAO... If I had the drive and energy I would go back and dig through all those pre-election threads and quote everyone who is NOT Dave that said Bush/Republicans were engaged in some sort of conspiracy to lower oil prices to swing the election. (The other part of my comment that you are apparently ignoring)

As usual, Bush and Co. were too late with too little and have lost enough power that they can't control the market as easily as before. How's that for spin??

Originally posted by: EagleKeeper
Are the oil companies now going to keep the prices low to embaress the Dems for accusing them of lowering prices to favor the Repub?

Spin doctors to the walls.

They are already gearing up to buy the WH in 08.

LOL, good one. If they want my vote, prices will have to go back down to the $1.50 level.

 

[catnap1972]

Originally posted by: Sheik Yerbouti
Gas went up 6 cents a gallon last week, and just went up 6 more cents during lunch today. But that's probably my over active liberal imagination.. :disgust:

Wow...we must all have vivid imaginations!

For WYD, we had a couple of stations that looked like they might go below $2.00 before the election, now nobody is under the 2.10-2.15 range, and many have gone back above 2.20 (s/central PA)

 

[Sheik Yerbouti]

Originally posted by: catnap1972

Originally posted by: Sheik Yerbouti
Gas went up 6 cents a gallon last week, and just went up 6 more cents during lunch today. But that's probably my over active liberal imagination.. :disgust:

Wow...we must all have vivid imaginations!

For WYD, we had a couple of stations that looked like they might go below $2.00 before the election, now nobody is under the 2.10-2.15 range, and many have gone back above 2.20 (s/central PA)

amazing that this happens the same time oil prices drop. Well the execs at big oil probably have HUGE shopping lists for the holiday..

 

[Arkaign]

Yep, here we are in Dallas area where I live .. relatively stable but undeniably climbing

http://www.dallasgasprices.com/retail_price_chart.aspx

 

[Sheik Yerbouti]

Oh I get it. It's a profit thing.. (a shiny penny for whoever gets the reference).

 

[jlbenedict]

Originally posted by: catnap1972

Originally posted by: Sheik Yerbouti
Gas went up 6 cents a gallon last week, and just went up 6 more cents during lunch today. But that's probably my over active liberal imagination.. :disgust:

Wow...we must all have vivid imaginations!

For WYD, we had a couple of stations that looked like they might go below $2.00 before the election, now nobody is under the 2.10-2.15 range, and many have gone back above 2.20 (s/central PA)

Same here... in far part of northern Maryland.... I thought for sure it would hit $1.99
fvck no.. back up to $2.19 and climbing

 

[catnap1972]

We were gonna pay no matter which way it went:

R's win: "Thanks for the votes, suckers! Enjoy!"
D's win: "F U! Now yer gonna pay for that mistake!"

 

[dullard]

Conspiracy theories (on either side) almost always makes people look like idiots.

Oil prices vary seasonally. Historically oil prices rise steadilly from Jan to Aug, soar up in Aug, stay relatively steady in Sept, and fall from Oct through Dec.

That means, prices almost always drop around this time of year. Elections or not. Republicans or Democrats. It doesn't matter. Prices fall around now. This time last year was the bottom of late 2005 oil prices. It may or may not be the bottom of this year's oil prices.

One thing to remember though is that today's price of oil isn't a good indicator of the price of oil. Unless something big changes soon, Monday's oil price will be almost $3 higher than it is today. The OP's post mentioned why. Investors today have a choice (a) accept delivery of 10,000 barrels of oil including transportation and storage costs or (b) sell off their investment. Not many investors have the desire nor the ability to handle all of that oil. So, they instead sell. Lots of people selling = price goes down.

So don't get overly excited with $55/barrel when we know on the next trading day it'll be $58/barrel.

 

[BoomerD]

We're back up to about $2.40 here...I know, Kahleeforneeya is always higher than the rest of the nation...but the spike in prices is blatantly obvious...
http://www.modestogasprices.com/retail_price_chart.aspx

 

[Vic]

Originally posted by: Craig234
If you were a liberal, you would understand that there can be a combination of factors, it's not entirely either/or.

It's common sense that if gas prices affect votes, then the White House, whoever is president, would have an interest in trying to push them where it helps them, if they can, for elections.

The difference is that this White House has a uniquely pro-oil president and vice president. It would be a long post to get into the long history there. It doesn't prove the facts about what has happened with gas prices and elections, but your attempt to 'prove' that there is no political influence on gas prices is utterly lacking.

The huge energy gift bill (tens of billions in taxpayer money as subsidies for the oil industry) from Bush was a problem regardless, and certainly created some incentive for the oil industry to owe Bush a favor. How much he got one requires something you may not be familiar with, analysis of the facts.

Backpedaling spin. You're just spinning baseless partisan conspiracy theories out of ignorance.

Anyone actually familar with the facts know that the reality is that the commodities boom that has been going on for the past few years is coming to an end.

There was a "double dip" creep upwards in oil and gas prices right after the election, so yes, many areas of the country (but not all) have seen a slight increase in prices at the pump. That trend will reverse here within the next week. Very likely, all of the country will be below $2/gal. by Christmas.

Anyone who thinks that a market trend precludes any volatility is clueless.

 

[Aj1966]

Originally posted by: Vic

Originally posted by: Craig234
If you were a liberal, you would understand that there can be a combination of factors, it's not entirely either/or.

It's common sense that if gas prices affect votes, then the White House, whoever is president, would have an interest in trying to push them where it helps them, if they can, for elections.

The difference is that this White House has a uniquely pro-oil president and vice president. It would be a long post to get into the long history there. It doesn't prove the facts about what has happened with gas prices and elections, but your attempt to 'prove' that there is no political influence on gas prices is utterly lacking.

The huge energy gift bill (tens of billions in taxpayer money as subsidies for the oil industry) from Bush was a problem regardless, and certainly created some incentive for the oil industry to owe Bush a favor. How much he got one requires something you may not be familiar with, analysis of the facts.

Backpedaling spin. You're just spinning baseless partisan conspiracy theories out of ignorance.

Anyone actually familar with the facts know that the reality is that the commodities boom that has been going on for the past few years is coming to an end.

There was a "double dip" creep upwards in oil and gas prices right after the election, so yes, many areas of the country (but not all) have seen a slight increase in prices at the pump. That trend will reverse here within the next week. Very likely, all of the country will be below $2/gal. by Christmas.

Anyone who thinks that a market trend precludes any volatility is clueless.

Exactly. I don't see how an "administration" can control commodity prices. That would be a great one to explain. I love how he puts the burden of proof on people who do NOT think an administration can change what you pay at the pump. The market determines the price, and any deviation from that has to be explained by people who cry that GWB is behind it all. What's even better is that he prides himself on being "liberal" because he thinks of other factors when considering oil prices other than the commodities market. Thinking of other possibilities doesn't make you enlightened if your only other avenues are conspiracy theories or a derivation from common economic theory/practice.

 

[Vich]

Originally posted by: Aj1966

Originally posted by: Vic

Originally posted by: Craig234
If you were a liberal, you would understand that there can be a combination of factors, it's not entirely either/or.

It's common sense that if gas prices affect votes, then the White House, whoever is president, would have an interest in trying to push them where it helps them, if they can, for elections.

The difference is that this White House has a uniquely pro-oil president and vice president. It would be a long post to get into the long history there. It doesn't prove the facts about what has happened with gas prices and elections, but your attempt to 'prove' that there is no political influence on gas prices is utterly lacking.

The huge energy gift bill (tens of billions in taxpayer money as subsidies for the oil industry) from Bush was a problem regardless, and certainly created some incentive for the oil industry to owe Bush a favor. How much he got one requires something you may not be familiar with, analysis of the facts.

Backpedaling spin. You're just spinning baseless partisan conspiracy theories out of ignorance.

Anyone actually familar with the facts know that the reality is that the commodities boom that has been going on for the past few years is coming to an end.

There was a "double dip" creep upwards in oil and gas prices right after the election, so yes, many areas of the country (but not all) have seen a slight increase in prices at the pump. That trend will reverse here within the next week. Very likely, all of the country will be below $2/gal. by Christmas.

Anyone who thinks that a market trend precludes any volatility is clueless.

Exactly. I don't see how an "administration" can control commodity prices. That would be a great one to explain. I love how he puts the burden of proof on people who do NOT think an administration can change what you pay at the pump. The market determines the price, and any deviation from that has to be explained by people who cry that GWB is behind it all. What's even better is that he prides himself on being "liberal" because he thinks of other factors when considering oil prices other than the commodities market. Thinking of other possibilities doesn't make you enlightened if your only other avenues are conspiracy theories or a derivation from common economic theory/practice.

Couldn't have said it better.