The price of oil drops 9%

Chris

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May 30, 2008
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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
 
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.
Crude oil for June delivery lost 0.47%, falling 46 cents to $96.91 a barrel, while gold dropped 0.71%, or $10.60, to $1,480.00 an ounce. Silver declined 64 cents to $33.49 an ounce, a loss of 1.88%. Optimism was in short supply after the government released a housing report that showed the number of new homes being built fell 10.6% in April. Meanwhile, a strengthening dollar put downward pressure on oil prices. A stronger dollar tends to drive down crude prices because oil and other commodities are priced in the U.S. currency, making them less appealing as the dollar rises.

The stronger dollar and weak economic numbers are the primary factors driving commodity markets at the moment, according to Daniel Flynn, an energy trader at PFG Best. But traders are also keeping an eye on the flooding Mississippi River and oil refineries in Louisiana. Any disruption in the refinery process could potentially reverse crude's slide, Flynn said. Barring that development, traders have a few outstanding worries.

The broad underlying fear is that the U.S. economy is slowing down, and traders have a slew of data to back that theory. And Flynn specifically pointed to the end of the Federal Reserve's second round of bond buying, eurozone debt worries and the political battle over the debt ceiling as destabilization factors. "We're in a correction mood on crude and gasoline ... and it's kind of wait and see on these other issues," Flynn said.

Source

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.
Billionaire hedge fund manager George Soros sold nearly $800 million of gold during the first quarter, as the precious metal surged to record highs. The investments in gold and mining companies made up about 10% of Soros Fund Management's $8.4 billion portfolio.

Gold prices have risen sharply this year amid a broad rally in the commodities market. But the metal has come under pressure after earlier this month rising to $1,557.40 an ounce, its highest level ever in non-inflation adjusted terms.

george-soros.gi.top.jpg


Soros Fund Management now owns only about 49,400 shares of SPDR Gold Trust (GLD), worth $6.9 million, according to a filing with the Securities and Exchange Commission.

The SPDR Gold Trust is one of the most widely held gold-backed exchange traded funds. Soros's position in December was worth $655 million, when the fund owned 4.7 million shares of the ETF.

MORE
 
HOUSTON — Oil prices closed below $100 a barrel on Thursday during a session in which most commodity prices fell sharply... ...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...

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.
 
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.
 
China is going to add 170 million cars in the next five years.
 
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.
 
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
And just like that it's back up again. Where are you now Chris?
 
9% drop? Time to go back to 99 cents per gallon. I wanna go back up to Yellowstone Park and camp at Jenny Lake. And spend some serious money on quilt stash fabric on the square in Jackson Hole. :)
 
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
And just like that it's back up again. Where are you now Chris?

$2.30/bbl jump just today.
 
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

Now I ask ya how much more proof than that do the libtards require to convince them that specualtion has nothing to do with the price of oil?
 
So why doesn't Big Oil use their muscle, influence, and manipulation to get the price right back up there? ;)

I think they did.

Why stop there? It was $140 + back in 2007.

How about $200? Do I hear $200?

Here's an idea: Why doesn't the U.S. sell "SPR Futures"?
Think about it - they've got over 700 million barrels sitting in caverns doing... nothing.

"Proven reserves". No drilling. No fuss, no muss. Just turn on the pumps and BINGO.

So- why doesn't Obamarama sell contracts on this oil that are due, let's say.... never.
Just dump 700 million paper barrels onto the market at $10 per barrel.

No Expiration Contracts! Yeah- that's the ticket.
 

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