Oil prices are dropping...

Discussion in 'Economy' started by jreeves, Jul 16, 2008.

  1. jreeves
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    jreeves Senior Member

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    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.
     
    Last edited: Jul 16, 2008
  2. Charles_Main
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    Charles_Main AR15 Owner

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    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.
     
    Last edited: Jul 16, 2008
  3. Paulie
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    Paulie Platinum Member

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    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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  4. Article 15
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    Article 15 Dr. House slayer

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    Ayup ...

    Now if that could only fit that on a bumper sticker ...
     
  5. Wow
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    Wow BANNED

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    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?
     
  6. Ravi
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    Ravi Diamond Member

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

    Sweet!
     
  7. Wow
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    Wow BANNED

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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. :eek:
     
  8. Diuretic
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    Diuretic Permanently confused

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    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! :cranky:
     
  9. Ravi
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    Ravi Diamond Member

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    Dems control the world!

    Sweet!
     
  10. Wow
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    Wow BANNED

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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. :eusa_angel:
     

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