Oil falls 5.4 percent in biggest drop since 2004

Oil falls 5.4 percent in biggest drop since 2004

www.reuters.com

Crude oil prices fell more than 5.4 percent on Friday in the biggest one-day slide since 2004 as dealers turned their focus to rising supply levels and weakening global demand.

A rebound in the U.S. dollar encouraged the sell-off, applying downward pressure across the commodities markets by weakening the purchasing power of buyers using other currencies, dealers said.

The slide adds to a more than 20 percent fall in the price of crude since mid-July...

(visit the link for the full news article)

Very good news and interesting too.

The largest slide in prices since 2004, and yet I am willing to bet we will see little difference at the pump. As the last line of my quote above reads: "The slide adds to a more than 20 percent fall in the price of crude since mid-July"

A 20% drop for someone other than me I guess because gas is still pretty dam expensive where I live and have been in the last month.

Also good to note is the pressures that caused the drop, 'decreased demand', 'rising supply', and 'a rebounding US dollar'.

Of course not mentioned is McCain Bush and the GOP's call for offshore drilling. Something many have been touting ass a cause for dropping prices.

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

And just think, this is only the tip of the iceburg. As more and more people jump on the "save the environment" bandwagon, demand will continue to decrease. Meanwhile oil production may eventually be increased by offshore drilling, and the speculators are getting their crap shoveled back on them by the whole thing.

And this price drop comes in spite of the recent Georgia conflict, which threatened a good portion of Europe's oil supply. It's refreshing to hear a bit of good news!

The 5.4 percent drop pretty much put oil right back where it was on Wednesday. Thursday oil prices climbed and closed around $120.

While the drop is good it really won't do anything for gas prices this time since we are really starting out where we were at the start of the week.

So much of the price of oil is due to the speculation in the market. I've read that if you eliminated the speculators that the price of oil would fall to $60/barrel or less.

Couple this with the fact that many people here in the US have changed their driving habit due to the high price of gas and you have another market that could collapse.

If the price of oil does fall to $40-$60 per barrel, I think that you'll see a world wide boost in everyone's economy.

I'd love to see gas once again in the affordable zone.

This kind of stuff pisses me off. No one should be paying more than $2.75 at the pump....period end of discussion. Im tired of hearing folks in America say europe pays 20 dollar per gallon..the east coast pays $4.50 yadda yadda. It doesnt make me feel greatful that I pay $3.55 for reg unleaded

[edit on 22-8-2008 by fastwalker23]

2 things:

Oil does not equal gas. Although it is the main ingredient, there are a TON of other resources and costs associated with the process of refining oil. Natural gas prices, increased labour costs, increased taxation, and increased cost of transportation to name but a few. Although I should point it that it is true that the price of gas should fall more with oil, just not to the levels people demand when oil falls. And yeah the speculators market does not help the situation.

Secondly, what happened to all of the 200 dollar a barrel end of the world sayers? It appears as if the market fundamentals will triumph over doom saying once again. Gotta love those markets!

reply to post by WuTang

Secondly, what happened to all of the 200 dollar a barrel end of the world sayers? It appears as if the market fundamentals will triumph over doom saying once again

Give it a little time...there is still a disturbance in the force that im surprised you cannot feel