Price of crude is down again today! Hmmm...I wonder if all the talk of

[napi21]

investigating the speculators is actually having an impact?



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[phantom power]

1. Demand has dropped.

[napoleon_in_rags]

4. Are you sure?

I mean investigating speculators does nothing to adress the reason for their speculation, peak oil. But increased demand is great news, that could almost foretell a smooth transition to alternatives...

[phantom power]

10. I think we're definitely seeing some localized demand destruction...

mostly via poorer people being priced out of the market. e.g. Americans drove fewer miles year-on-year. Now, that gets factored against continued strong demand in Asia and India.

In the big picture, I think it is going to be a seller's market from here on out. Fundamentals will favor expensive oil from now until we either replace it, or end up living like Amish, or meet somewhere in between. I don't personally think that's going to happen any time soon.

[napoleon_in_rags]

12. I agree. I always saw the long term peak above $180-$200

with no magic bullet in site for replacements.

[depakid]

8. and fears of supply disruptions have eased a bit

...for now.

[DJ13]

11. Demand has dropped. Not enough to offset China and India

At least that was the spin on the way up.

[Zynx]

19. A 2% demand drop in the U.S. is equivilant to an 8% move in China.

[Zynx]

18. Indeed it has which made oil's runup just that puzzling.

[Crazy Dave]

2. Or declining poll numbers for Bush III

[Bonhomme Richard]

3. Investigating the speculators

No doubt in my mind.

[Speck Tater]

5. Again the financial media

focuses on the daily ripples and ignores the rising tide.

Meanwhile oil prices go right on taking three steps forward followed by two steps backward. But in the long run, the forward steps always outnumber the backward steps, and oil prices will continue higher from now until forever.

[PVnRT]

6. The simplest conclusion

is that (1) demand is dropping and (2) the speculators are getting a little nervous about possible investigations and/or legislation.

The more cynical part of me wonders if Bush is getting his oil buddies to drive down the price some ahead of elections to make his party look good.

[napoleon_in_rags]

7. What could the speculators be doing?

I mean, correct me if I'm wrong, but it seems like they are speculating that peak oil will increase future oil prices, so they are buying now to resell at a profit later. Where could the criminal aspect lie?

[Captain Angry]

9. Could be bargain buying in the stock market.

Sell high (oil)

Buy low (stocks in financial companies, tech companies, etc)

With winter coming and the expected rate increases on heating costs, potential of hurricane damage to drilling operations, it could spike again. But then again, in my opinion, it's still at least $50 overpriced.

[orleans]

13. yes. speculators backing off. dickheads! all should be investigated! n/t

[orleans]

14. david schuster just mentioned this. said something passed 94-0 in senate

regarding the oil speculators. to investigate them? not sure.

[elehhhhna]

15. Obama's out of the country, so he can' t jakcup the oil prices...

as he has been for lo these past 30 years, per MCcain

[spanone]

16. there's an election coming....same thing happened in 2004

[napi21]

17. I'd buy that except that the election is over 3 months away! I don't see

the election having an impact on oil prices this soon.