The drop in the price of oil in the last 2 days proves one thing.

[kentuck]

The price is tied to speculation on the market. It has nothing to do with supply or demand or any new oil wells or refineries. It is pure speculation. So why have the oil prices dropped?

Some may have come to the realization that their greed and speculation is killing the goose that laid the golden egg? Their actions are greatly influencing the inflation and the prices of all products in this country. Yes, they can drive up the price of oil to whatever they want without any reaction from the Congress or the Senate, not even a murmur. They are free to speculate to whatever heights they wish.

But the bad news has hit home. There are runs on banks. We have the highest inflation since 1981. People are being laid off at a rapid rate. Our manufacturing base is disappearing. But the oil speculators are making money hand over fist. Unfortunately, it appears the damage has already been done. We are in for a bad economic period for America.

[HereSince1628]

1. A $6 one day drop against todays price isn't close to the percentage $6 represented

back in the early '90's.

[Ganja Ninja]

13. Yup, It could gain it back in one day. n/t

[Captain Angry]

2. Another possibility.

The stock market dropped quite a bit.

Sell high (the oil) to buy low (the stocks). It's how you make money.

Remove emotion and scheming, and look to the most likely answer. It's money chasing higher returns.

[kentuck]

3. Isn't it still speculation??

??

[Schema Thing]

4. the very definition

[aspergris]

5. correct

I've been a contrarian, and it's how I've built wealth through the market

Buy other's fear and panic, sell their euphoria.

Rinse, lather, repeat

Watch consumer sentiment for extremes, and fade them

Buy value, sell hype

and manage risk

[Speck Tater]

6. You are looking at the sloshing waves and ignoring the rising tide.

Of course speculation is the source of day-to-day small fluctuations in price. But the long-term, overall trend is driven by supply and demand.

To proclaim that you have isolated the "cause" of a long-term trend based on very short term fluctuations is just silly. It's like saying "Well, the last two days have been slightly cooler, so global warming is a myth."

[kentuck]

7. You may be right but....?

when was the last time the price went down even a penny??

[Speck Tater]

8. When did oil last go down?

Mid April, late April, mid May, early June, late June, mid July.

http://futures.tradingcharts.com/old_hist_BC.html

[exothermic]

9. How dare you ruin a perfectly good rant with facts!

:shrug:

[kentuck]

10. Thanks.

I guess it only seems like an eternity...Do you think it will continue to go down?

[Speck Tater]

11. I honestly believe

that there's no way to know.

The only way we will EVER know for sure if the current price of oil is mostly supply and demand (my opinion) or mostly speculative bubble (the opinion of many others) is when we are looking at it in the rear view mirror. So the only rational thing for the average person to do is be patient and wait to see how it all plays out.

Some day we will know. Today, we don't know, we can only state our opinions. Only time will tell.

[kentuck]

12. Should Congress ask questions of the speculators?

If it is mostly speculation, should we know about it??

[Speck Tater]

15. I think congress should investigate ALL possible causes, including speculation. NT

[Ganja Ninja]

14. Look at it this way, even if it does go down it ...

won't go below $100 a barrel.