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WTH is going on with oil?
Me ^ | 5/20/2010 | Me

Posted on 05/20/2010 11:02:24 AM PDT by mikelets456

WTH is going on with oil... Down another $5 today. Also, it is down $25 over the last three weeks but no change at the pump... why? Memorial day weekend?

Is this due to our strnger dollar?


TOPICS: Business/Economy; Chit/Chat
KEYWORDS: down; energy; gas; oil; up
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1 posted on 05/20/2010 11:02:24 AM PDT by mikelets456
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To: mikelets456

All I know is IM LOVIN’ IT!


2 posted on 05/20/2010 11:03:13 AM PDT by Grunthor (Faster than the speed of smell.)
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To: mikelets456

No manufacturing, use is down, supply is up, prices are lower...This is NOT a good thing...


3 posted on 05/20/2010 11:04:10 AM PDT by jessduntno (Kagan...Filly-bust-her. Bork her. Bork her hard. She needs it.)
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To: mikelets456

“but no change at the pump”

We’ve dropped 10 cents per gal in the past 10 days. Oil prices today actually reflect gas prices weeks to a month out.


4 posted on 05/20/2010 11:04:19 AM PDT by Grunthor (Faster than the speed of smell.)
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To: mikelets456

Go to a different gas station. The price at the pump has been going down for the last two weeks.....


5 posted on 05/20/2010 11:04:45 AM PDT by ButThreeLeftsDo
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To: mikelets456

There is an approximate 2-3 week delay from the impact of the price per barrel.

As they say....

The price change takes a while to work it’s way through the pipleline.


6 posted on 05/20/2010 11:05:04 AM PDT by JBR34
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To: mikelets456
Is this due to our strnger dollar?<>Yes. It is.
7 posted on 05/20/2010 11:05:19 AM PDT by NeoCaveman (we now live in a post-Obamapacolyptic world)
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To: mikelets456
Strong dollar. Our pump prices are down eight cents this week.

8 posted on 05/20/2010 11:05:45 AM PDT by Genoa (Luke 12:2)
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To: mikelets456

Several factors at work: reduced average seasonal US gasoline demand (due to weak economic growth), higher-than-expected gasoline inventories as well as US crude oil reserves, and a stronger US dollar.


9 posted on 05/20/2010 11:05:55 AM PDT by andy58-in-nh (America does not need to be organized: it needs to be liberated.)
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To: mikelets456

Obama and his Ebonomic Plan.


10 posted on 05/20/2010 11:06:23 AM PDT by screaminsunshine
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To: mikelets456
"Also, it is down $25 over the last three weeks but no change at the pump."

May is the month where refineries switch over to summer blends. This temporarily reduces gasoline inventories, even though oil inventories are plentiful and relatively cheap. This accounts for at least some of the increased cost of gasoline relative to the cost of crude.

11 posted on 05/20/2010 11:07:28 AM PDT by OldDeckHand
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To: jessduntno
"No manufacturing, use is down, supply is up, prices are lower...This is NOT a good thing..."

You got some 'splainin' to do. Yeah, the no manufacturing part sucks, but the rest is definitely good news.

Scouts Out! Cavalry Ho!

12 posted on 05/20/2010 11:08:08 AM PDT by wku man (Who says conservatives don't rock? Go to www.myspace.com/rockfromtheright)
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To: mikelets456

As a manufacturer who serves many industries I can tell you, without hesitation, that THE ECONOMY IS SLOWING DOWN AGAIN.

Oil demand is dropping, and some of the speculators are getting squeezed into liquidating long positions.


13 posted on 05/20/2010 11:08:52 AM PDT by darth
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To: mikelets456

Personally I think it is a reflection of a massive reduction in demand in the coming months to years. We are enterting a depression...


14 posted on 05/20/2010 11:09:10 AM PDT by surfer (To err is human, to really foul things up takes a Democrat, don't expect the GOP to have the answer!)
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To: mikelets456

Prices have been going down at the pumps around here.


15 posted on 05/20/2010 11:09:41 AM PDT by HungarianGypsy
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To: ButThreeLeftsDo

Yup. I left the job site Tuesday to go get drinks for my guys and passed the RaceTrac on the way. Regular unleaded was $2.719. By the time I got the drinks and headed back, the RaceTrac sign said $2.689.


16 posted on 05/20/2010 11:09:59 AM PDT by MIlle
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To: mikelets456

Maybe demand is cratering as the Obama depression widens?


17 posted on 05/20/2010 11:10:14 AM PDT by JLS (Democrats: People who wont even let you enjoy an unseasonably warm winter day)
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To: Grunthor
Me too. If gas drops to around the $2.50-2.60 range, I might actually be able to afford to take some time off and go somewhere this summer.

Scouts Out! Cavalry Ho!

18 posted on 05/20/2010 11:10:57 AM PDT by wku man (Who says conservatives don't rock? Go to www.myspace.com/rockfromtheright)
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To: mikelets456

Depression.

In fact, the economy is currently being ARTIFICIALLY STIMULATED by the approaching tax-rate increases on January 1st. Watch for crash on or before January 1st, as businesses and individuals cease economic activity that will no longer pay in 2011.


19 posted on 05/20/2010 11:11:40 AM PDT by Arthur McGowan (In Edward Kennedy's America, federal funding of brothels is a right, not a privilege.)
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To: mikelets456

Mostly it is because the Euro is falling. The dirty secret is that even though the dollar is supposedly the official unit of price, it has been pegged to the Euro for awhile in reality.


20 posted on 05/20/2010 11:12:05 AM PDT by Ingtar (If Palin were perfect, she could campaign for godhood. Since she is human, Obama's job will do.)
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Comment #21 Removed by Moderator

To: mikelets456
Prices are coming down but not at the “logical?” rate.

From what I have read, including here on FR, refining capacity is at an all time low due to lower demand.

22 posted on 05/20/2010 11:12:59 AM PDT by OldMissileer (Atlas, Titan, Minuteman, PK. Winners of the Cold War)
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To: mikelets456

Gulf Seawater burns so much funkier but at a lower cost!


23 posted on 05/20/2010 11:13:09 AM PDT by theDentist (fybo; qwerty ergo typo : i type, therefore i misspelll)
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To: mikelets456

Oil and all other commodities are down. Someone posted an article yesterday that the commodities index 50 day moving average had fallen below the 200 day moving average.
That is extremely bearish for commodities in general. Therefore, commodity hedge funds are selling across the board whether it is oil , coppper , lumber or anything else.
Why the price at the pump is not down. They are ALWAYS slow to lower prices because they already paid for the product in the tank at the station. Their price on that is fixed. They are quicker to raise it because they only need to be the same price or slighhtly cheaper than their competion down the street. You are not going to drive 40 miles out of your way to save $.05/gallon.


24 posted on 05/20/2010 11:13:22 AM PDT by woodbutcher1963
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To: mikelets456

Yes, obviously the dollar is one factor, because the weak dollar was propping up the price of oil. It was artificially inflated, anyway.


25 posted on 05/20/2010 11:14:28 AM PDT by nickcarraway
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To: mikelets456

It’s due to the the problems in Greece etc. It is NOT a good sign.


26 posted on 05/20/2010 11:16:09 AM PDT by PghBaldy (Like the Ft Hood Killer, James Earl Ray was just stressed when he killed MLK Jr.)
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To: mikelets456

Hopefully it will be down more over the summer - borrowing the folks’ motorhome. At 6.5 MPG, any drop in price is a good thing.


27 posted on 05/20/2010 11:16:20 AM PDT by IYAS9YAS (Liberal Logic: Mandatory health insurance is constitutional - enforcing immigration law is not.)
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To: mikelets456

Dang, I just got awarded over $100,000 in manufactured equipment. By the time it ships I’m sure it will go up.

Double face palm!


28 posted on 05/20/2010 11:17:15 AM PDT by poobear
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To: JBR34

Yep.

As they say, oil goes up like a rocket, and down like a feather....


29 posted on 05/20/2010 11:17:32 AM PDT by NOVACPA
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To: JBR34
As they say....

The price change takes a while to work it’s way through the pipleline.

That's when prices go down. When they go up, the price at the pump jumps immediately. The excuse is that they have to pay for the upcoming increase. Yeah, whatever...

30 posted on 05/20/2010 11:21:15 AM PDT by IYAS9YAS (Liberal Logic: Mandatory health insurance is constitutional - enforcing immigration law is not.)
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To: mikelets456

Also, it is due to a stronger US dollar.
People are selling EURO’S and buying US treasury bonds.
Investors also fear(fear and greed drive ALL markets) that there is not another TRILLION dollars to throw at the market to support it again.
Basically, the $HiT is hitting the fan.


31 posted on 05/20/2010 11:21:24 AM PDT by woodbutcher1963
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To: wku man

“You got some ‘splainin’ to do. Yeah, the no manufacturing part sucks, but the rest is definitely good news.”

Since so much of the oil market is involved in production, transportation, supply, energy and distribution of goods...if that ain’t happening, it is NOT a good thing. I understand what you mean, that it seems contradictory, but it really isn’t. I would rather see lower prices based on competition. And this is so not.


32 posted on 05/20/2010 11:21:39 AM PDT by jessduntno (Kagan...Filly-bust-her. Bork her. Bork her hard. She needs it.)
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To: Arthur McGowan
"Watch for crash on or before January 1st, as businesses and individuals cease economic activity that will no longer pay in 2011."

It won't even have to be a conscious decision, although I'm sure it will be partly. But, the fact of the matter is the people who are primarily responsible for capital formation in a free market - higher income earners and producers - will have less to invest and spend as the fedgov begins to take a bigger chunk.

This might account for some increase revenue to the Treasury, but that will be short-lived as the economy begins to slow, again (assuming it ever really began to pick up. Eventually, what is happening in California with respect to disappearing tax receipts will happen federally, which will spur the liberals to call for even higher taxes - it's a death spiral which we probably won't get out of until Obama is beaten, hopefully.

33 posted on 05/20/2010 11:21:55 AM PDT by OldDeckHand
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To: mikelets456

High oil prices are typically a sign of economic growth.

Ain’t much of that lately.


34 posted on 05/20/2010 11:22:23 AM PDT by Retired Greyhound
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To: mikelets456

Gold, Silver, Platinum, Palladium, and grain prices are all down today. Platinum and Palladium have dropped 10% in the last couple days.


35 posted on 05/20/2010 11:22:25 AM PDT by faq
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To: mikelets456
"... but no change at the pump"

Errrr... crude oil is bought on a futures market. Gas prices don't go up and down with crude prices at the same time.

36 posted on 05/20/2010 11:23:41 AM PDT by avacado
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To: mikelets456

World-wide depression... India and china are not using it as much as they were.

LLS


37 posted on 05/20/2010 11:36:18 AM PDT by LibLieSlayer ( WOLVERINES!)
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To: JBR34

The price change only takes awhile if it’s going down - if it needs to go up at the pump, it’s done immediately.


38 posted on 05/20/2010 11:39:15 AM PDT by Ro_Thunder ("Other than ending SLAVERY, FASCISM, NAZISM and COMMUNISM, war has never solved anything")
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To: faq

Lumber futures have come off 27 % in the last 5 weeks.


39 posted on 05/20/2010 11:42:37 AM PDT by woodbutcher1963
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To: mikelets456

most of it is the stronger dollar yes
keep in mind the Euro lost nearly 20 cents in the past two months that is significant
also there is a worry about overall demand in Europe for oil and i think our supplies are higher thany they thought
as for the price at the pump most likely the long weekend coming up, a bit of gouging and the fact that a lot of these guys probably bought the gas a month or two ago and havent used those up to order more yet


40 posted on 05/20/2010 11:43:31 AM PDT by DM1
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To: mikelets456

Good.

Keep going lower.

I have to purchase 600 gallons of home heating oil for the winter.


41 posted on 05/20/2010 11:51:04 AM PDT by GOP_Lady
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To: darth
Oil demand is dropping, and some of the speculators are getting squeezed into liquidating long positions.

Awwwww, I wanna see some of 'em take delivery.

42 posted on 05/20/2010 11:57:30 AM PDT by Roccus (......and then there were none.)
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To: wku man
You got some 'splainin' to do. Yeah, the no manufacturing part sucks, but the rest is definitely good news.

This is not really about manufacturing...it's about global economic activity--healthy growing economies have steadily increasing demand for oil. This time of year, in the Northern Hemisphere, economic activity should be increasing and demand for oil should be doing the same...that is obviously not the case.

The steady drop in oil prices at this time of the year means only one thing--economic downturn--The global economy, including the massive US economy, are headed back into recession (if we ever really got out of the last one). The canary is dead in the cage...
43 posted on 05/20/2010 11:58:32 AM PDT by rottndog (WOOF!!!! Be prepared for what's coming AFTER America......)
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To: mikelets456

44 posted on 05/20/2010 12:09:20 PM PDT by Jack Hydrazine (It's the end of the world as we know it and I feel fine!)
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To: mikelets456

Oil is a GLOBAL market. The Global economy is in worse shape than the US, so oil usage is down.


45 posted on 05/20/2010 12:29:44 PM PDT by Eva
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To: rottndog
"The canary is dead in the cage."

Of course, it was really never alive, just nailed to the perch like the Norwegian Blue in the Monty Python sketch.

From what this layman can see, there never was a recovery, just a leveling out of the free fall. What was passed off as a "recovery" was nothing more than an attempt to pull the wool over our eyes by the government-media complex. Of course, many of us have always been able to see that the Emperor has no clothes.

That said, I'll be happy to see gas prices drop here in Idaho. The money I'll save will go into my preparations.

Scouts Out! Cavalry Ho!

46 posted on 05/20/2010 1:33:08 PM PDT by wku man (Who says conservatives don't rock? Go to www.myspace.com/rockfromtheright)
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To: mikelets456

It’s due to low demand and large supplies.


47 posted on 05/20/2010 1:35:29 PM PDT by r9etb
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To: rottndog
The steady drop in oil prices at this time of the year means only one thing--economic downturn--The global economy, including the massive US economy, are headed back into recession (if we ever really got out of the last one). The canary is dead in the cage...

Agreed. But perhaps there's more, too.

One of the major drivers for increasing oil prices over the past year has been increasing Chinese oil consumption.

It'd be interesting to see the Chinese oil numbers, as a proxy for the overall Chinese economy.

If they're fairly level, that means no economic growth... and that means problems for them.

48 posted on 05/20/2010 1:39:15 PM PDT by r9etb
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To: darth
Curious. Is your product retail chain stuff or industrial chain items?
49 posted on 05/20/2010 1:41:36 PM PDT by mad_as_he$$ (If you can read this you are the resistance. (Oh and the GOP can bite me for $$$))
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To: Grunthor

Where I live (Seattle area) gas has dropped 20 cents in the last week or three.


50 posted on 05/20/2010 1:47:01 PM PDT by RobRoy (The US Today: Revelation 18:4)
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