Oil Price Drops on Over supply. Where is the hoopla?

[demosincebirth]

The price of a barrel of oil dropped, today, $1.54 to $87.54. I haven't seen it that low in years. That will equate, here in the E. Bay to prices lower than $3.30 a gal and in some parts of California closer to 3 bucks a gal.

Does Obama get any credit? it's happening on his watch. Republicans, of course, are mum on the subject...so why aren't the Dems reaping some of the good news.

[Warpy]

1. I don't think I've seen it under $90/bbl since about this time last year

I doubt we'll see a big dive at the pump because so many areas switch to gasohol this time of year, using less petroleum in their mixtures. Then again, it's an election season, so who knows? They've done a 2 week price break at the end of October before.

[herding cats]

2. It won't matter that much to us at the pumps really

Oil is fungible, which means we, the US consumer, or any cosumers, don't figure into their equation. We pay global prices for refined products, minus transport costs. This ticks off the drillers due to the 40 year ban on crude exports, but it makes the refiners pleased as punch, since they get the extra monies. They can sell their product on the global market once it's refined. If they get it at a reduced price, all the better for them.

Being as it's an election year, we usually do see a lowered price at the pumps here, but don't expect it to be something sustainable once peak driving times resume. Supply and demand are a myth when it comes to US oil production. A myth which was propagated by the drillers and spread by the GOP. Remember, "drill baby drill?" that was part of the propaganda. Once it's refined, it can go anyplace in the world to be sold, it doesn't have to be sold here even if it was domestic oil.

[FreeJoe]

5. Brent

This argument would make more sense if NYMEX was down and Brent wasn't. The price of crude oil worldwide has dropped recently rather than just the US price.

There are two reasons why I am not excited about it. First, it is dropping because worldwide energy demand appears to be slumping because of economic weakness. We are not better off when the world economy slows. Second, lower fossil fuel prices encourage more fossil fuel consumption at the expense of non-carbon emitting energy sources.

[demosincebirth]

10. I'm glad because it helps the workers at the lower end of the scale who pinch pennies to buy gas to

get to their meager paying jobs. What ever the cause of the drop in price, I'm glad and so should everyone, at least for that reason alone.

[Historic NY]

3. Doesn't matter here in NY 3.43 was the lowest I've seen...

in the morning.

[JayhawkSD]

4. No "hoopla" because it isn't good news.

The price of oil is dropping because the world's economy is slowing down, entering recession. The American media ignores this and hypes the American "recovery" because the thinking is that America will "decouple," meaning that it will be immune to what happens in the world's economy as a whole. Our economy will continue to grow as the rest of the world slows. It will not.

[sendero]

6. Exactly..

... the drop in oil prices is a phyric victory at best. The economies of the world continue to slow down, with a few exceptions. the Central Banks have "stimulated" just about all they can, further stimulus is not doing much.

So overall, not really good news. Not particularly related to Obama either way.

[JayhawkSD]

9. Hahahaha.

Obama is irrelevant? Isn't there a saying that indifference is worse than hatred? I think you might be inviting retribution from his loyalists by saying that he is irrelevant.

His is, in this case, but...

[demosincebirth]

11. What ever the reason I really don't care. Some of us wouldn't care if the the price was 5 bucks a

gallon, but those at the bottom rung of the ladder care a whole lot

[davidpdx]

7. I think we should have a pool on DU in terms of what the closing price will be on Dec 31st

[justiceischeap]

8. I did a little dance at the pump last night

does that count?

[demosincebirth]

12. What ever makes you happy, I'm for it.