The price of oil drops 9%

Discussion in 'Stock Market' started by Chris, May 5, 2011.

  1. Chris
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    Chris Gold Member

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    HOUSTON — Oil prices closed below $100 a barrel on Thursday during a session in which most commodity prices fell sharply, signaling that a recent run-up in commodities prices may finally be coming to an end.

    After four months of surging higher, oil prices plummeted by almost 9 percent as traders worried that American drivers were beginning to balk at paying nearly $4 a gallon of gasoline.

    Energy specialists had a variety of explanations for the drop, including Thursday’s weak employment data and a strengthening dollar that tends to make all dollar-denominated commodities cheaper in dollars and more expensive for holders of other currencies.

    “Pop goes the bubble,” said Michael Lynch, president of Strategic Energy and Economic Research, a consulting firm. “It seems unlikely you will see any tightening in the market in the coming months. The worst of the political threats have passed us.”

    http://www.nytimes.com/2011/05/06/business/06oil.html
     
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  2. Mr. H.
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    Mr. H. Diamond Member

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    So why doesn't Big Oil use their muscle, influence, and manipulation to get the price right back up there? ;)
     
  3. waltky
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    waltky Wise ol' monkey Supporting Member

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    Bubbles poppin' all over...
    :eek:
    Crunch! Oil, gold and silver all drop
    May 17, 2011: Commodity prices took a tumble Tuesday, as disappointing housing data and a stronger dollar pushed already nervous investors out of the market.
    See also:

    George Soros dumps $800 million gold stake
    May 17, 2011: Hedge fund pioneer George Soros is known for his bold bets in the currency market.
     
  4. iamwhatiseem
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    iamwhatiseem Gold Member

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    Yet the price at the pump is relatively unchanged.
     
  5. expat_panama
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    expat_panama Silver Member

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    We all know the real reason, this is flat out gouging by consumers hitting us hard working oil execs hard. We're not gonna take this anymore and we want investigations into consumer wind fall profits and let's have consumer tax-hikes now!!!

    Sounds stupid doesn't it.


    It is stupid.
     
  6. boedicca
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    boedicca Uppity Water Nymph Supporting Member

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  7. elvis
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    elvis BANNED Supporting Member

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    stronger dollar....
     
  8. JiggsCasey
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    JiggsCasey VIP Member

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    jesus christ... people need to stop going all ADHD over short term fluctuations... the long-term trend is UP... period.

    in fact, up 600% in 12 years. ... It's up because global demand is outstripping global supply. Very simple, really.

    Price volatility is a result of an ever-tightening market. There is no "conspiracy" here.

    Cheap oil wanes amid strong global demand => price rises... subsequent inflation crushes demand growth => prices dip.... growth returns, demand rises again => prices spike... rinse-repeat...

    It's called "the bumpy plateau"... But make no mistake, we ARE at peak. The IMF and IEA have confirmed that just this month.
     
  9. Chris
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    Chris Gold Member

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    China is going to add 170 million cars in the next five years.
     
  10. Oddball
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    Oddball BANNED Supporting Member

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    1) Given the pre-bubble-burst ratio of Crude:RBOB in '08, it's the gasoline price that's bubbled up, not crude.

    2) Count Chocula only sold a small fraction of his total gold holdings, and out of the paper at that....Don't fall for it.

    3) The USD is totally tanked....Have the Fed and Baghdad Ben bring on QE3, and watch commodities go batshit.
     

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