Dropping! Dropping! Dropping! Oil keeps falling, page 1

Looks like the $50 per barrel oil as predicted by Lindsey Williams is coming to fruition.

Oil traders made their biggest bet yet that the Organization of Petroleum Exporting Countries will fail to prevent crude prices from plunging below $30 a barrel.

www.bloomberg.com...

Will the Arabs soon get to know their camels better or will the western world beat them to it (getting to know mammalian transport, that is?)

reply to post by djpaec

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I've been wondering if the election might have been one of the reasons the cost of fuel went down?

And I'm like you...I want to know when food costs going to go back down? It's funny how when the price of gas went up, rising food costs seemed to follow shortly thereafter but not vica versa. I keep waiting for the price of food to go down since fuel has been so much cheaper, but it still hasn't happened.

reply to post by cornblossom

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Doubt it will happen, with food and other stuff. The dollar is worth less, therefore it takes more of them to buy stuff, I think. Am I right?

reply to post by cornblossom

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The rate of food prices declining will depend on the amount of suppliers. If you live in an ag based city like myself, you have already seen prices go down, albeit slowly. If the farmer next door is selling more at lower prices you have to compete by lowering your prices as well. If you live in a highly urbanized area, there are probably fewer, larger business that don't have to compete as aggressively so they can maintain high prices longer and milk the profits as long as they can.

I think oil was a bubble just like the housing market and the nasdaq. It was artificially inflated and now it is returning to a balance on the market.

reply to post by djpaec

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good point, they told us that food prices had to increase in direct relation to gas prices because of transporting costs...so where are the savings? should it not go DOWN as a direct result also? excellent point. star!

reply to post by chickenshoes

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Well inflation will definately play a huge factor. But the dollar is doing fairly well again currencies that were stomping us before.
finance.yahoo.com...

Also to what SuperSecretSquirrell said here's a link to back him up. I forgot about this article that I read 3 weeks ago.

consumerist.com...

reply to post by munkey66

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Heh, I didn't know the petrodollar played such a importent role. I mean shoot 10 years ago oil was at $20 a barrell and we were doing fine.

Originally posted by djpaec
reply to post by munkey66

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Heh, I didn't know the petrodollar played such a importent role. I mean shoot 10 years ago oil was at $20 a barrell and we were doing fine.

10 years ago you didn't have a sub prime mortgage problem.
10 years ago economies where booming.
10 years ago China and India started booming as economies and had an insatiable thirst for oil meaning that sales where strong.
10 years ago bread was half the price it is now.

strangley enough it was around 10 years ago that Suddam Hussein started selling oil for Euros rather than the US dollar.
You may want to also find out when Iran swapped from US dollars to euros to sells oil, because you may find that that was the same time Iran became a nuclear threat to the west.

Oil plays a very big role in the US economy, why do you think that oil is brought with US dollars from OPEC and not in other currencies like the Russian ruble or Chinese yuan?

Wall Street has gamed the system to keep oil prices high despite increased domestic production.
  Posted 13 days ago with 8 member flags

Enough World Oil Reserves for the Next Million Years?
  Posted 4 days ago with 5 member flags

Just HOW much does it cost to produce a litre/gallon of petrol/gasoline ?
  Posted 5 days ago with 4 member flags

who needs oil, We need Weapons Grade Hydride
  Posted 9 days ago with 1 member flags

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