Did Anyone Ever Come Up With A Reason For The Oil Price Drops

[lligrd]

during the Wall Street downfall, that doesn't involve Cheney?

[Cessna Invesco Palin]

1. Busted economy = less oil consumption. n/t

[lligrd]

2. Can't Be That Since Oil Is Already Heading Back Up

and the economy is still busted. Besides, it went up while the economy was supposedly robust.

[Cessna Invesco Palin]

5. Well...

>Can't Be That Since Oil Is Already Heading Back Up

Nobody ever said futures markets react rationally. There's a huge amount of panic/fear associated with what's going on in the markets right now, but the underlying assumption is that if the economy really tanks, oil consumption will go down.

>Besides, it went up while the economy was supposedly robust.

Yes. Oil will trend upwards when the economy is doing well. Of course this isn't the only factor.

[ProdigalJunkMail]

12. the dollar tanks

people move to commodities...in big numbers...the cost of oil if examined in oz GOLD instead of dollars really hasn't changed all that much.

people move to commodities...in big numbers...when there is market instability and god knows we have had that over the last couple of years

people move to commodities...in big numbers...when the markets TANK as they have in the last couple of days...they are looking for safe havens for money and thus driving the prices up...of just about everything...

and then there is some profit taking...

it sucks, but that is the way it is

sP

[and-justice-for-all]

3. It might have a little to do with Wall Street...

but from what I saw, it was price gauging. The prices here in Indiana, were everywhere.

[lligrd]

4. The GAS Price Rises Before An Emergency Are an Entirely

different question and easily answered with one word. greed. I was asking about why oil prices declined.

[specialed]

6. Seasonal lull.

Historically oil goes down in September and starts climbing early to mid October depending on the initial weather snap in the North East. A lot of folks in NE this winter will be living in the 62 - 68 degree range this winter on purpose. I wasn't expecting the bl price to go below $100. but the shift in the Euro/Dollar value from 1.57 to 1.41 per 1.00 dollar us accounts for the dip in price below $100. per bl.

See?

[curious one]

7. It's getting close to election day!!

[RC]

8. National elections are coming.

Oil prices always go down 2-3 months before the election nd back up with in 2 weeks after the election. Prices don't drop nearly as much in non election years.

[pampango]

15. The biggest drop in the price of gas since 2000 was in a non-election year.

Gas prices always peak in the summer, drop in the fall, bottom out in the winter and rise in the spring whether there is an election or not.

The biggest drops from the summer peak to the first week of November were from $1.66 to $1.17 (29.5%) in 2001 and from $3.04 to $2.37 (22%) in 2005. In 2002 the drop was just 1%, , 2% in 2004, then there was a big drop in 2006 from $3.00 to $2.19 (27%) and $1.66 to $1.50 (10%) in 2000.

On average gas prices have dropped more in non-election years since 2000.

[LeftHander]

9. Google Ol Futures Volume 2008

YOu will find that there was a 80% increase in money flowing into the oil futures market starting last Nov. and peaking in July...when money was pulled (profit taking)

It was pure manipulation of the market.

Very surprised that MSM did not report on that.

[Turbineguy]

10. $150 per barrel

priced in an attack on Iran.

After Bush leaves and if Obama wins, the price will drop more as "geo-political risk" will drop.

[fla nocount]

11. Speculators had been identified as the perps and the gig was up?

I'm just guessing but it does seem that some big boys fell when oil started falling. Investment banks, commercial banks and the futures market. Isn't there some kind of legislation to prevent these entities from pinching each others ass?

Again, I'm just guessing, this isn't something that I'm knowledgeable about.

[KharmaTrain]

13. World Economic Slowdown

We're seeing in this country the "pain threshold" on oil is about $4 a gallon. People are not traveling and not buying. This is rippling across not just our economy but others as well. The high prices in Europe also has slowed down a lot of growth going on there and our dropping demand is affecting the Asian markets.

Yes, there was a lot of speculation that drove up the prices...and it's interesting to see how the rise in oil prices held the housing bust in check...those losing in one game were winning in the other. Now the energy market has slowed down (it's sure to pick up again)...demand is down thus the price drops.

Many areas in this country are seeing a price spike thanks to Ike...i haven't seen a report in the past several days, but I had heard that many were still cleaning up and wouldn't be back online for another month...thus the prices will remain high...even if the barrel price drops.

I wouldn't be surprised to see the prices drop in the weeks before the election, but too little too late. The speculation game is running out of places to speculate. During the dot com days, that ponzi went for nearly a decade and as that bubble burst, the big money moved into housing...until that bubble began to blow up in the middle of '07...and then into oil and commodity futures. As I've always been told, the smart money never loses.

[H2O Man]

14. The strong foundation

of our economy.

[moondust]

16. Yeah. Gustav and Ike destroyed a lot of oil rigs.

Isn't that how it works? :sarcasm:

[Red State Rebel]

17. UAE Walked out of OPEC Mtg Refusing To Decrease Production

OPEC voted to reduce production to keep prices up, UAE said "no" we are not going to do that and walked out of the meetings. Since the UAE is the largest producer of oil, that left OPEC hanging out to dry. Since production will remain up to meet demands the prices have gone down.