Skip to comments.WTH is going on with oil?
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?
All I know is IM LOVIN’ IT!
No manufacturing, use is down, supply is up, prices are lower...This is NOT a good thing...
“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.
Go to a different gas station. The price at the pump has been going down for the last two weeks.....
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.
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.
Obama and his Ebonomic Plan.
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.
You got some 'splainin' to do. Yeah, the no manufacturing part sucks, but the rest is definitely good news.
Scouts Out! Cavalry Ho!
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.
Personally I think it is a reflection of a massive reduction in demand in the coming months to years. We are enterting a depression...
Prices have been going down at the pumps around here.
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.
Maybe demand is cratering as the Obama depression widens?
Scouts Out! Cavalry Ho!
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.
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.
From what I have read, including here on FR, refining capacity is at an all time low due to lower demand.
Gulf Seawater burns so much funkier but at a lower cost!
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.
Yes, obviously the dollar is one factor, because the weak dollar was propping up the price of oil. It was artificially inflated, anyway.
It’s due to the the problems in Greece etc. It is NOT a good sign.
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.
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!
As they say, oil goes up like a rocket, and down like a feather....
The price change takes a while to work its 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...
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.
“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.
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.
High oil prices are typically a sign of economic growth.
Ain’t much of that lately.
Gold, Silver, Platinum, Palladium, and grain prices are all down today. Platinum and Palladium have dropped 10% in the last couple days.
Errrr... crude oil is bought on a futures market. Gas prices don't go up and down with crude prices at the same time.
World-wide depression... India and china are not using it as much as they were.
The price change only takes awhile if it’s going down - if it needs to go up at the pump, it’s done immediately.
Lumber futures have come off 27 % in the last 5 weeks.
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
Keep going lower.
I have to purchase 600 gallons of home heating oil for the winter.
Awwwww, I wanna see some of 'em take delivery.
Oil is a GLOBAL market. The Global economy is in worse shape than the US, so oil usage is down.
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!
It’s due to low demand and large supplies.
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.
Where I live (Seattle area) gas has dropped 20 cents in the last week or three.
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