Oil dragged to 5-week low

[Rob-TheStormChaser]

Crude-oil futures fell briefly under $34 to their lowest level in nearly five weeks Friday with President Bush appearing to lean more toward diplomacy than an immediate war with Iraq.

The Bush administration has also indicated a willingness to release oil from the nation's reserves.

Crude for April delivery on the New York Mercantile Exchange traded as low as $33.80 a barrel, a level not seen since Feb. 11. It traded lately at $34.10 a barrel, down $1.91.

"Oil is going down [and] oil will keep going down until a war occurs," said Michael Cavanaugh, an analyst at Peak Trading Group in Chicago.

Most of the rise in oil prices these past months have been an emotional rally based on the fear of a war, but now that the U.N. is "taking a stand, and pushing the U.S. war effort back, the oil market is trading lower, and will continue to do so until the U.S. makes its move," he said. Cavanaugh expects oil prices to drop to the low $30s "soon."

The start of a war will likely trigger a quick rally, he said, but "once the smoke clears, the oil will drop again."

[wannabehippie]

well now that crude prices have dropped how long will it take before we see the results at the pump?
i betcha it will be FAR longer than when the prices went up.

if for crude stay steady i say it will take at least 2 weeks before we see a corresponding drop at the pump.

peace
david

[JQ Public]

Like they say...oil/gas prices go up like a rocket and down like a feather . WE'll see the effects eventually...i'm not expecting instant gratification though

[Rob-TheStormChaser]

Well....right now even though the prices drop for a barrel, the output has increased as well, and they are not waiting for war to start. There will be a drop at the pumps and I think people are just shocked at the 'peak' they currently are at. I gaurantee a drop very soon....if not subtle.