Oil Down More Than $2 as Supplies Swell

[SoCalDem]

http://www.reuters.com/financeNewsArticle.jhtml?type=businessNews&storyID=6720965

Thu 4 Nov 2004 | 7:20 PM ET Get your weather forecast



Oil Down More Than $2 as Supplies Swell
Thu Nov 4, 2004 05:19 PM ET

NEW YORK (Reuters) - Oil fell more than $2 on Thursday, resuming a downturn that has slashed 12 percent from record highs as growing stockpiles ease worries of a crunch ahead of the Northern Hemisphere winter.
The slide ended a brief rally following the re-election of President Bush, who traders said could bring stronger prices by bolstering demand and underscoring anxiety over security of Middle East shipments.

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[MidwestTransplant]

1. The economy must be slowing.

[fedsron2us]

2. Oil down, Dollar down, Gold up

Normally when the dollar drops there is an up tick in the oil price in response. This did not happen today. Gold was also sharply higher. I think that some people in Wall Street do not have much long term confidence in the economy. They may be bailing out of some commodities because they are expecting a recession to cause a sharp drop in demand.