Oil Falls $8 as Bernanke Says Risks to U.S. Growth Have Risen

Oil Falls $8 as Bernanke Says Risks to U.S. Growth Have Risen

www.bloomberg.com

July 15 (Bloomberg) -- Crude oil fell more than $8 a barrel, its first decline in a week, on concern that a slower U.S. economy will curtail demand for oil and gasoline.

Oil futures fell below $141 a barrel as Federal Reserve Chairman Ben S. Bernanke said risks to U.S. growth and inflation have increased, in testimony to the Senate Banking Committee. U.S. stocks tumbled, and the Standard & Poor's 500 Index reached its lowest since 2005. Earlier, oil touched $146.73 a barrel.

(visit the link for the full news article)

www.cnbc.com...


[edit on 15-7-2008 by yellowcard]

This is not really the entire story, but it's the only article I could find right now. According to CNBC on the television just moments ago, a large bank has started to liquidate it's oil position...it is now almost down $8. Bernanke has also been talking about a stronger dollar during this said testimony...which I'm glad to see. Let's hope this gives us some relief at the pump

www.cnbc.com
(visit the link for the full news article)

[edit on 15-7-2008 by yellowcard]

Well I would have to say that the price of fuel will NOT come down any time soon if at all Some thing will happen in the world to push the price back up

Actually it's currently at $143.69 a barrel and it nearly hit $150 just a few hrs. ago. Stand by for record breaking prices any day every day now.

Interesting that last week's record prices are this week's shocking new lows. I guess we just grow accustomed to the change.


[edit on 15-7-2008 by dbates]

Originally posted by dbates
Interesting that last week's record prices are this week's shocking new lows. I guess we just grow accustomed to the change.

Have you seen my avatar?
.

I guess it's time for Iran to do some more missile tests or for Israel to say something stupid.

Wouldn't that be nice? Provide 40% of the world's oil and all you have to do is shoot off a missile to make your profits soar?

Originally posted by dbates
Actually it's currently at $143.69 a barrel and it nearly hit $150 just a few hrs. ago. Stand by for record breaking prices any day every day now.

Interesting that last week's record prices are this week's shocking new lows. I guess we just grow accustomed to the change.


[edit on 15-7-2008 by dbates]

Actually, it's at ~$139 right now....I don't know why Yahoo's is off, maybe because it's not going off of ICE and electronic trading. www.bloomberg.com...

I don't think anyone has grown accustomed to high oil prices, if you are like many people who believe that oil has become very...bubbly, it is nice to see violent moves to the downside that may signal some relief ahead.

Crude oil for August delivery fell $8.33, or 5.7 percent, to $136.85 a barrel at 11:24 a.m. on the New York Mercantile Exchange. Oil fell as much as $9.26 to $135.92. Futures reached a record $147.27 a barrel on July 11 and have risen 85 percent in the past year.

[edit on 15-7-2008 by yellowcard]

The oil bubble is due to burst. Until there is some sort of sign the government is going to work on a strong dollar I dont see oil going down dramatically any time soon. Im sure some people will take some profits sure thats how this works but in the long run high oil is here to stay until helicopter Ben and our mafia leaders I mean our government decides they want to spend money that we have and not what we can print or borrow. I will admit though it does stink of a bubble.

reply to post by yellowcard


This is probably an intra-day trading price. I guess this is a big deal if you're a day-trader, but those of use who can't afford to buy 42,000 gallons of crude at a time (1 unit = 1000 barrels of crude) just worry about the closing price each day. Personally I'm more interested in the futures chain prices. Each futures contract has a closing date where the owner must take delivery of the product. If you look out into the future the price isn't going down.

finance.yahoo.com...

I am not sure about much in the market, but I do knew that they had to do something to keep from collapsing completely. We are in a world of hurt. Maybe they are doing al they can just to save their butts.

respectfully

reluctantpawn

Originally posted by dbates
reply to post by yellowcard

 

This is probably an intra-day trading price. I guess this is a big deal if you're a day-trader, but those of use who can't afford to buy 42,000 gallons of crude at a time (1 unit = 1000 barrels of crude) just worry about the closing price each day. Personally I'm more interested in the futures chain prices. Each futures contract has a closing date where the owner must take delivery of the product. If you look out into the future the price isn't going down.

finance.yahoo.com...

The back months are not supposed to go down much, the oil market is supposed to be in backwardation, not contango. The CLQ8 that you are quoting is the large contracts of oil, and if you'll notice the last trading time was 10:13:55 ET...which was two hours ago at the quoted price, which probably explains the divergence.

www.cnbc.com...

[edit on 15-7-2008 by yellowcard]

I think it was a good move. At 12:41 market was only down one point. What a save. I don,t like it but it worked.

respectfully

reluctantpawn

Its funny

Barrel prices went down

and the gas station right across the street from my store JUST changed its price from 4.09 to 4.19


amazing.

reply to post by mybigunit


It is due to bust, yes, but as banks are the leading speculators at the moment it would for one be incredibly stupid to unload even a good sized portion of their holdings ..

If one bank is trying to screw over another bank by unloading first -- which could happen -- I think the economic woes will be even greater as who ever bough expensive oil and now having to sell cheap will be forced to write down their books. Again.

At 145/b volatility will increase in dramatic numbers..

That is to say, when oil was $20/b a 5 cent increase was considered volatile. At 145/b 5 cents is unnoticed now.. instead 3-8 dollars is noticed...

Just as the DOW at 14,000 a 120 point drop was normal volatility in some cases as it only meant a fraction of a percentage lost...

At 10,999 130 points can be 1.6%+ .. a much bigger drop because the drop is a bigger percentage of the index as a whole.

Anyways .. oil prices will raise the index's .. some good news to grab onto on a day of bad reports...

Major banks give their profit reports later this week and next week.. Expect big write downs.