Bloomberg.com: Worldwide
July 16 (Bloomberg) -- Crude oil futures fell more than $4 a barrel in New York after a surprise increase in U.S. inventories and as a slowing U.S. economy sapped demand for energy.

Supplies rose 2.95 million barrels to 296.9 million barrels last week, an Energy Department report showed. Stockpiles were forecast to drop 2.2 million barrels, according to a Bloomberg survey. Fuel demand averaged 20.3 million barrels a day in the past four weeks, down 2 percent from 2007, the department said.

``The inventory numbers are starting to reflect the bad macro-economic news,'' said Michael Lynch, president of Strategic Energy & Economic Research in Winchester, Massachusetts. ``Not only did we get a surprise build in crude-oil stocks, the products were also up nicely.''

Crude oil for August delivery fell $4.14, or 3 percent, to settle at $134.60 a barrel at 3 p.m. on the New York Mercantile Exchange. Prices dropped 7.3 percent since July 14, the biggest two-day decline since January 2007. Futures are up 81 percent from a year ago.

Oil today fell as low as $132 a barrel, more than 10 percent below the record of $147.27 reached on July 11. A drop of that magnitude is commonly referred to as a correction.



I believe right now is the time for Congress to lift the ban on offshore drilling. I think it would send oil prices plummetting.

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Be thankful we're not getting all the government we're paying for.
Will Rogers

Socialism is a philosophy of failure, the creed of ignorance, and the gospel or envy, its inherent virtue is the equal sharing of misery.

Winston Churchill

And so, my fellow Americans: ask not what your country can do for you—ask what you can do for your country.

JFK

No man's life, liberty, or property are safe while the legislature is in session. -- Mark Twain

They are dropping mainly because people are feeling the crunch all around the world and using less.

So much for supply and Demand not effecting the price as some would have us believe.

I agree completely about announcing the lifting of the Congressional Ban on drilling, The mere act of saying so will lower the price we all pay.

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Charles_Main

"Whenever a man has cast a longing eye on offices, a rottenness begins in his conduct."
Thomas Jefferson

"Dependence begets subservience and venality, suffocates the germ of virtue, and prepares fit tools for the designs of ambition."
Thomas Jefferson

I disagree. Since when is Congress' "word" good for anything?

When they break ground for new drilling and refinery construction, the market will respond.

But there's still the issue of the Dollar and inflation. Inflation is going to raise the price of oil, just like it raises the price of gold. Deficit budgets, national debt doubling...all those things are killing the Dollar, and oil is not going to respond favorably until the Dollar is treated the way it should be treated.

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"If you analyze it I believe the very heart and soul of conservatism is libertarianism. The basis of conservatism is a desire for less government interference or less centralized authority or more individual freedom and this is a pretty general description also of what libertarianism is."

-Ronald Reagan

Ayup ...

Now if that could only fit that on a bumper sticker ...

This was the biggest decline in oil prices in 18 years.
Bush's actions did make a difference and now it's up to Democrats to keep it going down.
I wonder if Democrats will do nothing to lift the ban?

You're blaming Bush for the dismal economy and high gasoline prices?

Sweet!

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Even if Democrats lift the ban, environmentalists (Leftist Lawyers) will sue to block the action.
Since Democrats took over Congress, oil prices tripled and gasoline prices doubled.
By the way, why are Democrats blocking nuclear energy and wind farm energy?
France gets 80% of their power from nuclear energy and Italy is now going nuclear.
Democrats are still living in the 60s.
Democrats want to increase oil company profits and then take these profits at the expense of the American people.

Riiiight - that's why all of us outside the US are noticing increased prices. If only you'd kept the Republicans in Congress, none of this would have happened!

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I've seen the wild horses, I've heard the bull roarers

Dems control the world!

Sweet!

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What dismal economy?
I'm seeing huge Corporate profits, oil has fallen $17 a barrel, Dow up 185.

Where is this recession?

Phil Gramm is right. You are an American whiner.

I still think this is more a product of good old supply and Demand. Price goes up, people us less, price goes down. Of course that would kinda mess up the ideas of those who say drilling and increasing domestic supply would not lower prices eh. Or for that matter that building new refineries would not lower the price or Gas(not oil). TO me it does not take much thought to see when your refineries are at near capacity to refine Oil into gas, that building a few more would be wise.

__________________
Charles_Main

"Whenever a man has cast a longing eye on offices, a rottenness begins in his conduct."
Thomas Jefferson

"Dependence begets subservience and venality, suffocates the germ of virtue, and prepares fit tools for the designs of ambition."
Thomas Jefferson

Could this mean that the bubble is leaking?

One can certainly hope so.

Don't hold you breath, until be address the Debt, and thereby the weak dollar, things will not improve much on any front.

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Charles_Main

"Whenever a man has cast a longing eye on offices, a rottenness begins in his conduct."
Thomas Jefferson

"Dependence begets subservience and venality, suffocates the germ of virtue, and prepares fit tools for the designs of ambition."
Thomas Jefferson

The Texas Energy Commission approved $4 Billion of wind farm contracts today!

This will be the largest wind farm in the world.

Environmentalists will fight it by declaring that doves are an endangered species....or some crap like that!

There are forces within the market that could cause the price to drop regardless of the Dollar, but that drop would certainly be short lived so long as the Dollar continues to be treated the way it currently is.

Everyone here thinks all this bullshit about building refineries, drilling here at home, etc, is going to magically make the problem go away. It will definitely bring the prices down, but it most certainly won't KEEP them down.

__________________
"If you analyze it I believe the very heart and soul of conservatism is libertarianism. The basis of conservatism is a desire for less government interference or less centralized authority or more individual freedom and this is a pretty general description also of what libertarianism is."

-Ronald Reagan