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Can Anybody Explain Why Oil Continues to Decrease?

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posted on Oct, 16 2008 @ 11:10 AM
I'm not assuming this is linked to a conspiracy...but I am unsure why all of a sudden amidst an economic crisis, the price of oil continues to trade down.

posted on Oct, 16 2008 @ 11:13 AM
Easy. The global economy is grinding to a halt. Less demand. The same reason casinos, restaurants, home improvement and vacation destimations are taking it up the shorts.

posted on Oct, 16 2008 @ 11:29 AM
For some reason, I just assumed the price of oil would increase as some commodities do.

Either way, I enjoy the lower gas prices!

posted on Oct, 16 2008 @ 11:30 AM
I saw an ad on a website I visit yesterday that was for a vacation to Iceland $299.00 for five days four nights round trip airfare plus hotel. Now that's some cheap vacation. Expect to see a lot of this sort of thing. Vacation hot spots and restaraunts, and other frivolous things becoming extremely cheap to get people to buy. People are worried about their jobs and putting food on the table, not road tripping to the hamptons to see the fall foliage. People aren't driving around cruising "Noland Road" (my neck of the woods, teen hot spot) anymore.

This does give some creadence to the supply and demand theory though. Demand is low, supply is high, prices drop. I filled my tank for the first time in months and it didn't cost me an arm and a leg.

posted on Oct, 16 2008 @ 11:32 AM
I would think it is dropping because it was artificially manipulated into reaching the ridiculous highs that it was at. It is still in the 70's, so that is still quite a bit higher than it was just a few years ago.

posted on Oct, 16 2008 @ 11:35 AM
In Windsor, Ontario (in the shadows of Detroit) despite the price of oil hitting a thirteen month low, gas prices shot up today about eight cents per litre . . . in US terms, that's about 30 cents a gallon.

What the hell is THAT?

posted on Oct, 16 2008 @ 11:37 AM
reply to post by MOFreemason

well there have been lots of people who have said lots of things the best one for this is a man called Lindsey Williams and his book "Energy non_crisis". there you can find whats realy going on he saw the trend months ago and called it by saying "when the price of oil reached $50 a barel we will be dancing in the street but in 3-5 weeks its going to crash out economy ", mainly it meens prices are going down because the oil barrons are pulling out there monies out of the market buying gold and land buy cashing in all there t-bonds so they have phyisical welth and not useless t-bonds.......

but i suck at explanations but you can find his book by doing a torrent search for Lindsey Williams good man very smart........

or go here its on line freebook

[edit on 10/16/2008 by ramble]

posted on Oct, 16 2008 @ 11:41 AM
reply to post by Karlhungis

Yes it was manipulated for some time, now the global crisis is causing less demand like another poster said and the markets are getting inundated with oil that can not be sold.

That is why the OPEC is going to start cutting the production to even out the demand, this may cause the prices to raise again as the winter time is coming in America and demand is always higher.

But this will be after the elections.

posted on Oct, 16 2008 @ 11:43 AM
the price of oil is decreasing because the fed is proping up the money suppy .
Right at the minute it's in a state of deflation.All to soon it will be in a state of inflation then oil will go up.If the fed does not catch it in time it will go into hyper inflation,which a lot of people are predicting.If it goes into hyper inflation the price of everything will go out of sight.That is why you see so many people saying buy caned goods and ammunition.In the weimar republic before the second world war billion dollar bills were not uncommon.In fact it took a wheelbarrow full of them to buy a loaf of bread.This is why the federal reserve bank must go.

posted on Oct, 16 2008 @ 11:47 AM

Originally posted by Karlhungis
I would think it is dropping because it was artificially manipulated into reaching the ridiculous highs that it was at. It is still in the 70's, so that is still quite a bit higher than it was just a few years ago.

It was this mainly. The 'speculation' since there was no cap on what the speculators would say the price of oil would go to. Then, there started to be some SERIOUS bit.....ummm, complaining from the people. Okay, the PTB ignored that as long as they could while they and their sponsors ground out as much as possible and then the demand figures came out.

Hmmm, wow, the funny thing about those demand numbers was that they showed a DECREASE in demand since mid to late last year which is surprising since they pushed for the $3 mark at the end of the year and then shot us near and above the $4 mark for a while. All on LESS demand than when the prices were much less 18 months ago.

Their excuse? Oh, it's all about demand. Yet they didn't want everyone to find out about the lowered demand here in the states. And once again, nothing will come of it because these oil barons know full well that every time they get called to speak before congress that it is simply a show and they can be their usual arrogant selfs and walk away scott free.

Well, too much attention has come to the 'less demand' issue and they are forced to allow the prices to come back to where they should be.

Personally I think that they are actually allowing the relief because they are realizing that they may have tried to squeeze just a bit too much out of the people and the timing with the mortgage and financial industry crisis was just really bad. They have been told that they must allow for the relief or the elites may lose their slaves for a while.

posted on Oct, 16 2008 @ 12:02 PM
Well, it is a bit of a conspiracy.

The constant threat to attack Iran, coupled with the Iraq War has caused speculators to continually ramp up the price of oil. Demand has increased in the last 10 years, but not at the rate that the speculators ramped up the price.

Think about it, Hurricane Katrina caused the price to go up because of closures that once reopened, the prices did not retreat back because of the next 'Iran issue' that was being hyped.

The inflated capital in the home markets was supporting the inflated oil markets as well.

That is only part of it, but it is part of it, and is a conspiracy.

posted on Oct, 16 2008 @ 12:05 PM
I appreciate everybody's comments to my question.

This site has a large number of quite street-smart and book-smart folks! Thank you everybody...

posted on Oct, 16 2008 @ 12:30 PM
It's not just gas of course. Nearly everything we purchase is made from oil, and transported by that same oil...

Clothing Ink
Heart Valves
Transparent tape
Vacuum bottles
Rubbing Alcohol
Epoxy paint
Oil filters
Hearing Aids
Car sound insulation
Motorcycle helmets
Shower doors
Refrigerator linings
Electrical tape
Safety glass
Salad bowl
Rubber cement
Nylon rope
Ice buckets
Hair coloring
Toilet seats
Denture adhesive
Movie film
Fishing boots
Water pipes
Car enamel
Shower curtains
Credit cards
Golf balls
Fishing rods
Plastic wood
Soft contact lenses
Trash bags
Hand lotion
Shaving cream
Paint brushes
Fan belts
Paint Rollers
Model cars
Floor wax
Sports car bodies
Dishwashing liquids
Unbreakable dishes
Hair curlers
Ice cube trays
Electric blankets
Tennis rackets
Drinking cups
House paint
Rollerskates wheels
Guitar strings
Ice chests
Life jackets
TV cabinets
Car battery cases
Insect repellent
Typewriter ribbons
Cold cream
Plywood adhesive
Artificial turf
Artificial Limbs
Beach Umbrellas
Ballpoint pens
Nail polish
Golf bags
Tape recorders
Vitamin capsules
Fishing lures
Shoe polish
Petroleum jelly
Faucet washers
Food preservatives
LP records

That's just a small list. Virtually everything we buy/use is created from, or uses oil...

If you think there is some conspiracy involved, just go do a random survey of 50 people and see how much less people are consuming/purchasing. Look how much less you have been consuming. Just look at all the people who lost their jobs and houses. Look at how many businesses are laying people off, merging, or being forced to shut down.

posted on Oct, 16 2008 @ 12:30 PM

Originally posted by Karlhungis
I would think it is dropping because it was artificially manipulated into reaching the ridiculous highs that it was at. It is still in the 70's, so that is still quite a bit higher than it was just a few years ago.

From what I have seen with the rest of the market, that is exactly the reason. Part of the reason we are in such bad shape right now is because companies bloated their values in the first place. Google should have never been so close to 1000 points and oil should have never broke over 80. The hyper inflation of corporate value wreaked the market just like high value loans given to poor people wreaked the credit industry.

posted on Oct, 16 2008 @ 12:31 PM
Im just curious, how exactly is there less demand for Oil??

I mean I still have to run my car, heat my home no differently to before. Someone please tell me how there is less demand please!

posted on Oct, 16 2008 @ 12:36 PM
easy less money to spend creates less demand , very simple Alot of people are out of work can't aford to buy.......

posted on Oct, 16 2008 @ 01:08 PM

Originally posted by kcfusion
Im just curious, how exactly is there less demand for Oil??

I mean I still have to run my car, heat my home no differently to before. Someone please tell me how there is less demand please!

Read that. It should explain it to you.

posted on Oct, 16 2008 @ 01:33 PM

This economy is really freaking me out.


the thing that is getting to me most is oil crashing.

That will bring the NA economy to its knees.

posted on Oct, 16 2008 @ 01:45 PM
reply to post by ramble

If you're interested, you can find a radio interview with Lindsay Williams on youtube about this.

He said that gas would come back down to about $50/barrel, but it would be the signal of an economic crash. The middle-east would take huge hits to their economies because of it and they would more or less go back to being camel-riding nomads again - just as they were before we built them up. He then said we would find new sources of oil in the Philippines (if i recall) and we would invest heavily into imports from there and Russia instead of the middle-east.

That's the nutshell as I remember it from that interview. Interestingly I heard that several months ago when oil was pushing $150/barrel. So far we're on track to proving him right.

Here's the link if you're interested:

At the time of this post futures are at $70/barrel. lowest it's been in a LOOOONG time.

[edit on 16-10-2008 by an0maly33]

posted on Oct, 16 2008 @ 02:04 PM
Price of oil continues to drop..... Why ???

because the OPEC cartel, desires to squelch the desires of the consuming nations from ramping up their own production.

If the cost of developing new oil fields far exceeds the return on investment....then the oil 'drill-drill-drill' plan will fall into disarray.

without oil at $145+ a barrell, it was worthwhile to drill new fields offshore,

but for $80bbl it just ain't worth drilling, making 1/2Trillion$ platforms, creating helicopter & shipping supply line & infrastructure...for an automatic loss producing venture.

Also the tar-sands & oil shale deposits are no longer profitable to develop by private financing...
geo-thermal and wind, wave turbines or generators are no longer cost effective...

the 'peak oil' suppliers are making self reliance too costly to undertake...
which keeps the cartel in the drivers seat for a few more decades.

besides Dubai and AbuDhabi have already raked in their Trillions & have their grand projects already paid for, even if unstarted as yet..

they have attracted money & persons of position as residents in their Gulf State nations...10 star residences, a future finance hub for the globe, etc etc etc

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