Hmmm....what's happening to crude is interesting!

[napi21]

Light Sweet Crude Oil Futures,Nov-2008,RTH (-CL)
-CL quote
91.02 -4.67 -4.88%
Previous Close 95.69 Day's High 93.60
Day's Low 91.00


Opec announced a few days ago that they were reducing production to keep the price of oil up. Doesn't look like it resonated much huh?

[NightWatcher]

1. interesting is that oil is falling, yet gas is holding

here in Florida they are even looking at gouging charges against people who jacked up the costs last week because Ike was in the Gulf. We were paying above 4.29 a gal when we get ours from MS and AL (who were not affected by Ike)

[RB TexLa]

2. If the demand is enough to sustain a price why would it fall?

[napi21]

5. I think what you're seeing at the pump is the rear of damage to the

refineries in Houston and the rest of the Gulf. The price I posted was raw crude.

[ben_meyers]

7. These are future prices

we are paying for gas that was in inventory already, plus the disruption in production due to the storms. Look at the future wholesale price of gas and heating oil. Both have dropped with crude.

http://www.bloomberg.com/markets/commodities/energyprices.html

[PVnRT]

12. Doesn't matter

Gas is a funny commodity - even though you may normally get it from MS and AL refineries, and those refineries were fine, the overall supply is down because all of the Houston refineries are offline. Even if they were at full output, those places that depend on Houston will be screaming for gas, and the refineries will be happy to sell it to them at the price they're willing to pay.

[DJ13]

3. Were entering a deflationary spiral

While I think oil needs to be lower (around $40), this price decrease is actually in reaction to the economy deteriorating rapidly, and is dangerous.

[Tandalayo_Scheisskopf]

4. Actually...

CLV08.NYM Crude Oil Oct 08 90.80 2:58pm ET Down 4.91 (5.13%)
HOV08.NYM Heating Oil Oct 08 2.7493 2:41pm ET Down 0.0419 (1.50%)
NGV08.NYM Natural Gas Oct 08 7.238 2:41pm ET Down 0.136 (1.84%)
PNV08.NYM Propane Gas Oct 08 1.565 2:03pm ET 0.00 (0.00%)
RBV08.NYM RBOB Gasoline Oct 08 2.4271 2:42pm ET Down 0.1343 (5.24%)

It could break 90 today, but tomorrow? Definitely. The market is shedding speculators who have ruined themselves financially.

Gas will continue downward. What is propping up HO/Diesel is anybody's guess.

[Javaman]

10. I'm curious as to how far down it will go, because...

once it goes below 80 bucks, those companies investing in the tar sands and shale oil will start losing money on their investments.

strange times ahead.

[Tandalayo_Scheisskopf]

11. Wherever it is going, it is because...

The big institutional investors and the nose-hair-on-fire speculators are taking a bath and retreating to whatever cash they can salvage. Where it will end up will be where its true value is.

And do, please, watch this video of the last honest man, to see what has been in play with all of the panic:

http://www.youtube.com/watch?v=_DY8pUTTNuk

Not to minimize the need to start NOW with all the alternatives available to us, instead of Dinosaur Wine, but I firmly believe that Peak Oil was used as a lever, to create cover and induce panic, by those who could profit from it the most.

I happen to be very suspicious of some of the loudest Peak Oil proponents out there. I would greatly like to know more about them and their finances. I suspect that at least some of them are not as altruistic as they would have you believe.

[ThomWV]

6. Its got a lot farther to drop before its done - as I said 6 months ago

It will keep on dropping until it hits something around $60 and it will stay there for a while.

[ben_meyers]

8. I keep telling people to look back to the late 80's

The stock market dropped a hell of a lot further and the entire Savings and Loan system went bust. The oil price spike went from the mid 40's a barrel to bottom out at 7 bucks. I still remember them capping wells because they were losing money on every barrel pumped.

[Oregone]

9. USD is on a rally too. World currencies are in decline.

Being abroad I watch this daily. I figured the minute oil broke 100, the USD would rally like so.

[ljm2002]

13. Didn't I read just a few days ago...

...that the Saudis walked out of the OPEC summit before the announcement of limited production, stating unequivocally that they would supply enough oil to meet customer demands? Might that not have something to do with the price drop?

[Trekologer]

14. Commodoties accross the board are down

Folks are cashing out...and that's not good.