Oil price over $147 for the first time-now above $80

[DanKellFla]

I really hope that I am wrong. So, I will say that it is a coincedence that the election is about 1 quater away and that the gas prices are dropping. If there is a spike in gas prices 2 weeks after the election, then it might be a bit blatant.

Care to explain further without getting political? I want to be sure I am understanding what you are saying here.

It is hard to without getting political. But, there is a possiblity of collusion to attempt to make people feel better and try to keep the current party in control. The lower the gas prices, the better we all feel. Yes, it is kind of out there. But, I had somebody tell me that just before the election that gas prices would drop and I thought it was crazy too. But, here it is.

[Stephanie]

The REAL question is how they are spending their record profits, or where is the cash going?

Just read their financial statements, if you're honestly curious. It's all public record.

I did and that's what I was talking about.

[george_r_1961]

Anyone that thinks the "bubble" has burst is sadly wrong. The horrible, and worsening economy has forced Americans to severely curtail driving, reducing the demand for oil. But guess what??? Summer is almost over. A lot of people, including myself, heat with oil and when winter gets here demand will go back up and so will the price. Granted there will be a lot of thermostats set low this winter though.

[gtalum]

Anyone that thinks the "bubble" has burst is sadly wrong. The horrible, and worsening economy has forced Americans to severely curtail driving, reducing the demand for oil. But guess what??? Summer is almost over. A lot of people, including myself, heat with oil and when winter gets here demand will go back up and so will the price. Granted there will be a lot of thermostats set low this winter though.

Heating oil accounts for only a small percentage of oil usage. Consequently, the peak months for oil consumption are the summer months, when people drive the most. The cost of diesel fuel goes up in winter because it's the same thing as heating oil, but the cost of crude oil generally drops in winter.

Further, while demand has dropped in the US, it continues to rise in China and India.

I really think the bubble is ending. Even threatened sanctions against Iran have only caused prices to rise ~$1 so far today.

[Agua]

The fact that oil dropped $4 / barrel with a TS headed towards Gal/Hou should tell anyone what role big $ speculators such as hedge funds have played in this ridiculous price run up.

US consumption dropped about 2% - that in no way accounts for the 20% drop in prices over the past 3 weeks or so. It's largely speculators, along with devalued US $. The only supply and demand working here is speculators' demand for futures contracts.

[gtalum]

Yesterday's small increase (blamed on new Iran tensions) is already more than erased this morning. Yep, the bubble is popping.

In other good news, the dollar is surging against world currencies today. The Euro is down below $1.51.

[fwbbreeze]

oil down to around $116 this morning....dare we say $100 by Labor day. From $147 to $116 in what 3 weeks??? I would say the bubble has sprung more than one leak!

fwbbreeze

[gtalum]

I don't know about Labor Day, but I certainly wouldn't be surprised to see sub-$100 oil by October or sub-$80 oil by the end of the year.

[Cyclenall]

It's dropping fast now, down to $115.21 ($4.81 down!).

EDIT: Down to $114.84 (- $5.18!)

[Stephanie]

There will be a spike for Labor Day, I'm sure. I don't think that we will see the gas prices spike to the highest level we did see this past year.

Regular $3.57.

[gtalum]

Stephanie I think you're right that there will eb a spike before Labor Day. There always is. I suspect the downward trend will continue and even accelerate after that, though.

[senorpepr]

Shoot... war going on in the Caucasus and oil is still dropping.

(Down $1.77 at this time for $113.43/barrel)

[gtalum]

It's going to "test" the $110 barrier. I think it'll fall right through, settle near $100, then bump back up for a bit around Labor Day. Ultimately I really still think it will settle at or below $80 for the winter.

[Hybridstorm_November2001]

It's going to "test" the $110 barrier. I think it'll fall right through, settle near $100, then bump back up for a bit around Labor Day. Ultimately I really still think it will settle at or below $80 for the winter.

Indeed, happy I sold my oil (barrels, not stocks) while it was at $147. I don’t see it going above $110 (at least not for longer than a short term spike) again for awhile. Barring of course any unforseen crises.

[Ed Mahmoud]

This thread's title updated each day oil prices went up, but haven't changed since they started down.

[Cryomaniac]

Oil is now down to about $113, although it could rise today given Hurricane Gustav.

[cpdaman]

oil follows the dollar trends

when dollar trend is down the slightest gasp of anything rockets prices higher (and people scream ya i told you it was supply/demand)


when the dollar trend is up a moderate event will do very little to change the price of oil (and people scream ya i told you it was nothing do do with supply/demand

the truth is the financial media would not like for people to know that 4$ gas is more a function of First and foremost ; a weak dollar and the ability for financial wagers to hedge their bets on either side of trend( which heavily impact prices, so they play up the supply/demand card, i would not cheapen this and call it a conspiracy, just manipulation i.e "corporate marketing " along with the general infrastructure of the "markets" which allows these things to occur.

[Stephanie]

Stephanie I think you're right that there will eb a spike before Labor Day. There always is. I suspect the downward trend will continue and even accelerate after that, though.

No "spike" yet. I hope I'm not jinxing it either.

$3.25 for regular.

[JonathanBelles]

I saw it for 3.55 today Still thanking god that it isnt $4 anymore.

[Cryomaniac]

Oil is up nearly $3 on the day, presumably due to Gustav related issues.

Now at about $119.