Oil Prices Plunge

[roadwarrior]

Oil is currently down $4.10 on the day.

http://www.foxbusiness.com/story/markets/industries/energy/oil-sinks-ahead-inventory-report/

8-)

 

[Live.2.Fish]

I think the "Oil Bubble" burst!

Oil is in complete freefall! I can practically see $2 gas.

:

Anyways, its nice to see oil pull back a bit. Now that it's "on-sale" I'm sure that the price will get run up again this afternoon. :'(

[grimlin]

I think the "Oil Bubble" burst!

Now that it's "on-sale" I'm sure that the price will get run up again this afternoon.  :'(

That on-sale quote cracked me up.....That's so sad we got to start saying it's on-sale nowadays.

[KYbass1276]

It won't last long watch and see.

[BadKarma42]

A news update on the radio today had a guy saying that while the price of gas may rise a few more cents, he belives it will fall 15-25 cents over the next month or so as a result of fewer miles driven and more fuel conservation.

[roadwarrior]

Oil closed today down $4.63 @ $126.40

;D ;D ;D ;D

[Live.2.Fish]

Hurray!!! Party Time!

I hope this is the start of something!

[Siebert Outdoors]

whoo hoo.  good thing I filled up the other day. :

[Wildbillb]

AWESOME.....so that means the $4.14 I paid today will be a bargin until at least Monday.

[Low_Budget_Hooker]

AWESOME.....so that means the $4.14 I paid today will be a bargin until at least Monday.

well put Bill

[Micro]

Boy, on that news I went out and bought a brand new V-16 Chrysler Behemoth SUV.  3 MPG.  

Seriously, I these super high oil prices can't be sustainable.  Gasoline demand HAS to fall (or increase at a much lower rate) given the super high prices.   I'm interested to see if gas prices fall with the oil prices.  I'm not confident about that.

[bassdocktor]

Micro I can say that they will still go up. I went to pick my mom up from work at 3:30 and they raised the price at the station right by me. Went from $4.25 to 4.29 in a matter of less than 30mins.

[roadwarrior]

People are so silly. "The sky is NOT falling!"

Oil is just another commodity and prices fluctuate. Gasoline will fall

below $2.00 a gallon by year end. There is no "shortage", just panic.

BTW, Rice is still available at my store, but the media hyped it a few

weeks ago as if we were at "The End Of Time". Stay calm, be rationale,

we ain't "just about out" of anything except smarts.

8-)

[Low_Budget_Hooker]

$2 by end of year, awesome, I'll be able to go fishing in '09

Seriously, I have the time, I just can't afford the gas bill to go back and forth as much as I want to.  

[Micro]

It may be $2.00 a gallon next November, but it's $4.00 a gallon now, and I have to drive to work tomorrow.  

This isn't about a gas shortage, or even an oil shortage.   It's about a weak dollar, oil producers lowering inventory, and demand that exceeds refining capacity.  All this crap is happening all at once to a greater degree than it's happened in the past.  Sooner or later the dollar will strenghten, inventories will stabilize and increase, and demand for gas will lower due to price and refining will catch back up. Then prices will drop.  

Until then, it sucks.

[=Matt 5.0=]

People are so silly. "The sky is NOT falling!"

Maybe not in T.N. .....

[quant PT]

I long for the good old days when gas was only 2.25 per gallon.  I think that may have been back in 2006 but I 'm not sure. It was a long time ago.  Since I drive a chevy 2500HD I guess I am part of the demand problem.

[Dan:]

someone should seriously make an "OIL DISCUSSION THREAD" sticky...

[fish-fighting-illini]

Oil is just another commodity and prices fluctuate. Gasoline will fall

below $2.00 a gallon by year end. There is no "shortage", just panic.

8-)

RW this is one time I hope you are right but I don't see it.

Tell you what I'll put up a FFI - AKA Matt Crum's custom homemade 1/4oz spinnerbait delivered to your door vs 4 senkos or a smallmouth lure of your choice or something. The winner gets to post his pic with the losers's ( in this case your) picture (lol). Gas must be down to $2.00 / gal or less by Dec 15th

Are we on?  

[5bass]

Oil is just another commodity and prices fluctuate. Gasoline will fall

below $2.00 a gallon by year end. There is no "shortage", just panic.

RW, I had to laugh when I read that.....but you forgot to say "thank you, I'll be here all week....and please tip your waitresses"

Seriously though, I hope you are right. I can't take the blatant price-gouging much longer.

[key chain bass guy]

What annoys me about the whole thing is that it seems like everything makes the price of oil go up, but not down.  Stock market loses, price goes up, storm forecast in the gulf, price goes up, political unrest in some third world country, price goes up.  How come the price doesn't go down when the stock market gains, or the weather is nice in the gulf?

[Live.2.Fish]

People are so silly. "The sky is NOT falling!"

Oil is just another commodity and prices fluctuate. Gasoline will fall

below $2.00 a gallon by year end. There is no "shortage", just panic.

8-)

I totally agree with that.  All we hear about is how there is such an oil shortage.  Until I go to the pump and there is a sign that says "sorry we are out of gas", I won't be sweating a "shortage".  Its all Hype IMO

[roadwarrior]

What annoys me about the whole thing is that it seems like everything makes the price of oil go up, but not down. Stock market loses, price goes up, storm forecast in the gulf, price goes up, political unrest in some third world country, price goes up. How come the price doesn't go down when the stock market gains, or the weather is nice in the gulf?

Commodity prices are all very volatile and oil is no different. When prices go up, the media scrambles for a reason, something or someone to blame. When prices fall, it's usually not big news.

8-)

[Wildbillb]

I have been saying that people are loosing lots of money in the housing market and credit market. Look at these investment banks loosing are rear ends left and right. So where is a safe bet to put your money? Oil people will always need oil. And with only 5% down you can buy oil on the commodity market too. Read this article and when you are done tell me spectualtion isn't driving the market.

http://emac.blogs.foxbusiness.com/2008/05/30/farm-bills-bid-to-stop-oil-speculation/

Estimates that speculators have more oil tide up than China?  

[senile1]

It may be $2.00 a gallon next November, but it's $4.00 a gallon now, and I have to drive to work tomorrow.  

This isn't about a gas shortage, or even an oil shortage.   It's about a weak dollar, oil producers lowering inventory, and demand that exceeds refining capacity.  All this crap is happening all at once to a greater degree than it's happened in the past.  Sooner or later the dollar will strenghten, inventories will stabilize and increase, and demand for gas will lower due to price and refining will catch back up. Then prices will drop.  

Until then, it sucks.

Exactly.   There are a number of variables that affect oil prices and I believe the weaker dollar has been the biggest culprit in the rising oil prices.  When the dollar's value goes down, what do investors do?  They leave the dollar and put their money into commodities.  And there have been no new refineries built here in over 30 years.  That's a heck of a way to artificially keep gasoline supplies lower than they could be.  Just remember what happened to housing.  Any market can experience a bubble.  The bubble for the oil market will eventually burst as well.