Why is the price of oil dropping all of a sudden?

[novadem]

Is this the Bush/Saudi connection finally at work? Now the Dow is up over 10K again.


http://biz.yahoo.com/cbsm-top/041027/0a7d4d64abde0e839622dcbf77e9b434_1.html

[Q3JR4]

1. Um....

An election is coming up, $2.00 a gallon for oil looks baaaaad for the current pres.

[ramapo]

2. Pump price just went up in NJ

The die is cast

[PROGRESSIVE1]

3. Damn!!! Down DOW Down!!!!!

Let Kerry get elected first, then go up!!!

[Nashyra]

8. Down! price of oil down

You have got to be fucking kidding. Prices "tumble" below $54 a barrel. I remeber just a few weeks back when it was a tragedy for oil to be up over $30 a barrel. This is pure evil fucking bullshit, let the folks think that $50 a barrel is great because it is going down instead of up. There is no reason for oil to be higher than $24-27 a barrel except that the admin and their cronies know they can pysch the public out and they can, that's it. They can jack up prices and they are.

[PROGRESSIVE1]

10. I want the Dow DOWN and Oil UP at least until this election is over.

I want people to see and feel the horrors of Bush & Co!

They will vote him out for sure!

[Bonhomme Richard]

4. Dropping? I just paid $2.07 a gallon n/t

[AlCzervik]

5. $2.40 regular, up 5 cents from last week.

northern california

[novadem]

6. Hopefully most voters

will feel the pinch at the pump and not watch the DOW

[MADem]

7. BANDAR does not understand the market, apparently

Lower prices per barrel do not translate into immediate reductions at the pump. You've got the whole delivery and refinery cycle to contend with, plus the sale of existing material in the pipeline at the higher rate. And then, there's the greedy oil company profit margin....

Too little, too late.

[snowbear]

9. LOL.. I just asked this (3 pages ago)

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=132x1187523

Yup.. I think something is up too..

[priapis]

11. Oil Futures Fell on Inventory numbers this AM

every weds there is an economic statistic released (crude oil & distillate inventory numbers)that drives speculation in the oil futures market.

there was a build in crude inventory, so speculators figure supply/demand will force prices lower down the road and they sold off the futures contrax.

[Almost_there]

12. Actually, this one's pretty simple..

The reason oil prices are dropping all of a sudden is because the Gulf of Mexico rigs are all back online and their deliveries have hit, Saudi Arabia, Venezuela and Russia (I think it was those three) announced that their inventories this cycle are higher than anticipated (crude already pumped out of ground, sitting in storage) and US supply-on-hand is at a high point because of winter coming up. Driving season is over, home heating deliveries have yet to begin aside from "pre season top offs", so, there is simply a glut of oil in the system, top to bottom. The price is honestly too high right now, it was simply the market performing a historical swing. Oil has a tendency (per my broker) to go on 'runs', where it will rise higher than the market can bear, or, fall lower than the market can sustain. Its a commodity that is traded more than any other, and being a "future", and NOT an actual commodity (unlike Gold, you don't actual buy oil, you buy the future contract, typically 30 days out) for oil. So, teh market sees a glut of oil, the see a short term softness for oil, and the price goes down. Nothing to do with Bushy, if it had, he fully understands that this would have needed to happen 30 - 45 days ago to really affect the pumps. Notice how when gas prices rise they rise like a rocket and fall like a snowflake?

~Almost

[novadem]

13. I just don't want anything going

his way this week.