Analyst predicts plunge in gas prices

Seattle Times ^ | September 14, 2006 | Kevin G. Hall

[Chi-townChief]

WASHINGTON — The recent sharp drop in the global price of crude oil could mark the start of a massive sell-off that returns gasoline prices to lows not seen since the late 1990s — perhaps as low as $1.15 a gallon.

"All the hurricane flags are flying" in oil markets, said Philip Verleger, a noted energy consultant who was a lone voice several years ago in warning that oil prices would soar. Now, he says, they appear to be poised for a dramatic plunge.

Crude-oil prices have fallen about $14, or roughly 17 percent, from their July 14 peak of $78.40. After falling seven straight days, they rose slightly Wednesday in trading on the New York Mercantile Exchange, to $63.97, partly in reaction to a government report showing fuel inventories a bit lower than expected. But the overall price drop is expected to continue, and prices could fall much more in the weeks and months ahead.

[Chi-townChief]

Sounds good to me!

[olderwiser]

Let me guess--

this would somehow be bad--and Bush's fault!

[Man50D]

This thread was posted two days ago. I suggest you do a title search prior to posting.

[gaijin]

Carl Rove, you beautiful bastard...! ;)

Mwaaaahahahahahah.....!

[IronJack]

Perfect! Now if we could just see a few oil speculators hanging from lampposts as a warning not to let this happen again ...

[tobyhill]

$2.19, paid $2.16 with grocery card, Carrollton Texas.

[goldstategop]

LIBERALS ARE DOOMED! (good economic news sucks. Film at 11.)

(No more Olmert! No more Kadima! No more Oslo! )

[operation clinton cleanup]

This thread was posted two days ago. I suggest you do a title search prior to posting.

Some of us were not here two days ago...

[Cedar]

I'm happy, but my oil stocks are sad.

[proxy_user]

There is no need for that.

Presumably, if they are long, they will lose lots of money. Surely that will discourage speculators, won't it?

[Samwise]

I saw it for $2.10 in Indianapolis. It was $2.19 at most places; some as high as $2.29.

[claudiustg]

What was the price there before?

[TheLion]

It is still $2.55 where I live in Virginia. The guy must be gouging.

[sgtbono2002]

I hope the speculators lose their asses. That having been said. Dont get used to it. If it goes down it wont be long before it goes back up again.

[operation clinton cleanup]

To bad those speculators are going to lose their shirts!

[pointsal]

Oh goodness sakes...that evil schemer Rove has been planning this for months....

[garyb]

My liberal associates are of the opinion that it is no coincidence that gas prices are dropping just before the election.

[PA Engineer]

Perfect! Now if we could just see a few oil speculators hanging from lampposts as a warning not to let this happen again ...

I think many speculators will be hanging themselves from lampposts by the time this bottoms out.

[IronJack]

If you read the article, this entire spate of gouging was built on fear. It is nothing more than a latter day "run on the bank," a panic in oil.

It was a bleak day for capitalism, and further proof that supply and demand were not the only, or even the primary, forces driving the price of fuel.

[tobyhill]

It got as high as $3.02.