Oil at $126. What on Earth is going on?

Just heard this on CNBC searching for link nobody has it up yer. Somebody please explain what is happening to oil prices.

Not at all complaining, but just want to understand why the gigantic slump all of a sudden.

ap.google.com...


Hopefully the bubble has now burst for the speculators in the futures market who were largely responsible for inflating prices. Problems with refining capacity still exist though.

Yes, the speculators need to be removed or gagged.

I find it rather strange that when oil goes up so does gas prices but when oil drops gas prices do not drop as fast as they go up....

This seems very convenient on the heels of Freddie Mac, Fannie Mae and IndyMac (who names these damn things!!!?!?!).

If oil prices had stayed the same - the markets would be tanking right now. Any growth you have seen is due to the decrease in oil - nearly $20!

It has been announced today in the UK that some supermarkets are dropping the price of petrol by up to 5p a litre. Going from £119.9p a litre to £114.9p.

Great for us UK folk!

How did it end up in the UFO forum? I am new here, so I guess I posted it in the wrong place.


Is there any way I can move it?

It's Better yes, but hardly GREAT!! Lets not forget that only seven years ago it was only $20 a barrel, and the uk was paying 80-85p a litre at the pump. I will call it great when i see THOSE figures again. No disrespect Gregandgemma, but i think your too easily pleased.

Doing what I thought they would do. Make it go very high, then drop some and everyone is relieved even though they are still paying up the a**

Thats what makes more easier for people to take it without lube.

Me and my friend have been talking about this since a tad after 9/11 when gas was going up constantly..

They raise a lot lower a tad, raise some more lower a bit, raise, lower, raise, lower.. you get the point..

in a press release issued by the CFTC today, the CFTC report that they found little evidence that the recent price rise in oil was attributable to speculation.

Here is a link to the press release which says:



Speculation? Yeah right. It's called supply and demand. Look it up.

i have said this so many times that it is not something that i am considering saving as a copy/paste....

....gas will go down eventually. but things have to stabilize first. Consider:

- over the past year oil has gone from around 75 bucks a barrel to the recent high of around 144 bucks. That means that in a year the price of a barell of oil DOUBLED.

- over the same time gas has increased by about 38%. It went from 2.50 to 3.45, on average.

so, oil doubles but gas doesn't...who do you think is taking it the rear, here? You??? Most certainly not. Sure, you are paying more. But you are still paying less than you should, given the sudden increase in valuation of oil.

Recently Exxon announced that it was getting out of the gas pump business. You see why now, right?

And, to my earlier question, it is the refineries and distributors that are getting creamed on the difference in the oil increase. They have narrowed their profit margins considerably in order to keep gas at a more reasonable level. They are the oines who are suffering for the concept of "it is worth what people will pay".

And this is the problem with speculators. They say it "will" be worth 145, or double its value of a year ago. But the consumer doesn't agree, so the people who actually sell and refine the gas take it in the rump.

You can keep thinking that while they rake in record profits in the billions..

And this is after all the money they use for what they do.. profit as in actual bank money u can spend type profit..

Right after Katrina they raised the gas and soon after came out with a 40 bil profit..
SO them losing money is bs show me proof they are, I can show u news articles to prove they aren't.

I dont know why its dropping, but I was out earlier todat and was surprised to see that our gas prices on my side of town(always higher than across town where my parents live), have dropped. It was over 4.20 last week, today it was 3.96.

Gas $3.50 by labor day? or calm before the storm?

cbs2chicago.com...

Oil went to $140 because a hedge fund, which went bankrupt today, was a major shorter, and when things went the wrong way for them they were forced to buy back in driving the price to $140.

As for being happy about the price drop - I won't be happy until it retreats to the $60-$70 mark. There are huge tankers full of oil in the worlds oceans with no place to deliver their oil. We have an oil glut folks and it won't be long before all Wall Street realizes it and sends the price down to the $60-70's. The end result will be the end of inflation and very bullish world markets.

I think it's a combination of factors. One, the Congress is introducing regulations on speculation (again), so some of the more antsy speculators are staying quiet. Two, consumption has dropped in the US.

I don't expect to see much in the way of a gasoline drop, maybe a small one to make people stop complaining (as much). Diesel has already dropped a reasonable amount, I think in response to the fact that so many trucks are sitting still. The oil companies make their money from the economy, so they obviously don't want it to collapse completely.

BFFT is right about the relative costs of gasoline, but he's wrong about who's taking it in the rump. Diesel was about $1.00 a gallon back in 2001-2003, when oil was $30 a barrel. It's now running close to $5.00. Diesel is a by-product of gasoline, but it has increased by 500%, compared to just over a 400% increase in the oil price. Diesel has been subsidizing the gasoline costs, as I suppose heating oil and natural gas has been. Trust you me, while I don't think Exxon-Mobil or Shell or Chevron or BP are making a killing, they are certainly not going to 'take it in the rump' for us.

Pinktip: Only if Congress gets serious about speculation regulation. Don't hold your breath.

TheRedneck

Pinktip: Only if Congress gets serious about speculation regulation. Don't hold your breath.

TheRedneck

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Oh, I not...I'm in the $150/b before $120/b camp.......I just wanted to bump the thread and get some input....

Thanks!