Oil has dropped $16/bl in three days -- have gas prices followed suit yet?

[Deja Q]

They've gone down a dime, so far...

What's it like in your area?

[redqueen]

1. No drop at all. (nt)

[Chan790]

2. .15/gal. drop here...

$4.36 to $4.21. You'll see more drops too...oil closed below $130 a barrel today to $129. It's expected to hard bear for a while...even OPECs analysts said the proper price was just over $80/bl less than a month ago. Knowing they inflate their projection numbers...the price of a barrel of oil, if it corrects down to its' actual value might go into the $70s. That would erase all 2008 gains and probably start bankrupting oil companies.

Meanwhile the peak-oil people look like loonies...again. Hopefully, people are smart and the market remains in small efficient cars. I'm a realist however and expect Hummer sales to be popping come September.

The speculators are jumping ship and the people taking the hit are the investors, particularly those who have pensions and 401Ks invested heavily in energy markets and commodities.

Once again...I think we should ban petroleum from the NYMEX. Speculation and speculators should not be allowed to cripple the economy. Fuckwads. Going up...we got fucked. Coming down...we'll get fucked. And President Oil-man gets rich in both directions.

[Initech]

3. .20/gal drop in the La La Land area.

Went from $4.59 to $4.33. Not bad but it's a start. I still demand an explanation though.

[Chan790]

4. Explanation of what?

why it's free-falling? Banks and investment houses are profit-taking and cashing out their holdings. This is driving the speculators from the market.

You have to realize what was the cause of the boom in the first place...was that these institutions usually invest their on-hand capital in real estate...that became a poor investment during the mortgage crisis...so they diverted their capital into the next-best-thing in terms of stability and growth...energy futures and commodities. They saw great growth so they bought more...the price rose (and so did their investment) but now they've got a problem...demand is falling due to higher prices and they're sitting on options and commodity holdings they paid more for than they're going to be worth if demand continues to fall.

[Initech]

6. I want an explanation of why we're paying $4.50 a gallon.

It's not necessary. It's all speculation.

[Chan790]

7. That...I have no idea...

because some asswipes determined they've got us by the short-and-curlies and even if it was $20/gal. we'd still need $their gas. Petroleum is a drug on a large scale and the nation is addicted.

They're just emulating the best business practices of your unfriendly local drug-dealer.

[crimsonblue]

5. I knew the bubble was close to bursting

I don't get how the talking heads can say we are in peak demand... Ummm... nope. That would be 2005. Every year since has seen less domestic consumption. Plus, s&d isn't to blame anyway. It's the war in Iraq and rampant speculation.

[trof]

8. No, gas reniged. Trumped a led club trick.

Still had 6 of clubs in hand.
It's hard to keep those black suits straight.
;-)