Posted on 10/10/2008 5:36:26 AM PDT by thackney
Oil prices plummeted to a one-year low below $83 a barrel today in Asia as investor fears of a severe global economic downturn sparked a panicked sell-off of equities and crude.
Light, sweet crude for November delivery was down $3.85 to $82.74 a barrel in electronic trading on the New York Mercantile Exchange by midmorning in Europe, the lowest since October 2007. The contract fell $1.81 overnight to settle at $86.62.
"The whole market has lost confidence in everything," said Mark Pervan, senior commodity strategist with ANZ Bank in Melbourne. "Everyone is worried about global growth, and oil is the front line commodity for that. There's just a lot of panic and fear in the market."
...
Oil investors even ignored signs that the Organization of Petroleum Exporting Countries may cut production. OPEC said Thursday it will hold an extraordinary meeting Nov. 18 to discuss how the widening global financial crisis is affecting oil prices.
On Thursday, the head of Libya's national oil company, Shukri Ghanem, called on oil producing nations to cut output.
"OPEC is trying to jaw-bone the price up, but they'll have to come into the market because no one is going to be believe just jaw-boning with the market sliding so quickly," Pervan said. "The market is so demand focused, it doesn't even care what happens to supply."
OPEC's decision last month to cut production by 520,000 barrels a day failed to halt the losses, which have accelerated in recent days.
(Excerpt) Read more at chron.com ...
It should be at $25.00
If only we had more refineries to exploit this glut.
This is a bad thing?
I quess Hugo Chavez will have to feed his masses with it, make them think is chocolate or something else maybe mole.
So what should gas prices be? Anybody know where to find historical data of oil prices vs. gas prices. It seems to me like the price should be lower.
Maybe we could fill the basements of all the houses the Feds are going to buy.
Maybe Bushy can print up some more cash and top off the Strategic Reserves while he’s at it too.
Damn speculators. Supply/Demand my arse. Ponzi scheme more like it.
But for some reason, gas is still over $3.60 a gallon here in the southeast. And yet the refineries are supposedly back to capacity.
Why is it taking so long for the price of gas to come down? I know it takes a while, but it’s been falling for a while.
Its not LIFO, its LIFU. Last In, FU!
$25 isn’t what it used to be.
I’ve been saying 50 by Christmas for 6 months. Every oil, and any other energy producer has been pouring it on.
Most of the extraction, energy making projects will be completed. The money is had, the projects half way through.
So look for way more product, of all types, oil, gas, coal, whatever, to increase.
Further, throw in the economic slowdown, coupled with conservation.
Now add massive cheating and the race to get the last high price of oil by the producers. Other than maybe Saudi Arabia, the others and especially broke bank Russia, crazy Hugo, et all have been junkies for fat oil prices. The only way they can keep up their standard of living is to pump more.
50 by Christmas.
undoubtedly some last gasp profiteering
but I expect near $2/gallon by Christmas
gas is dropping as fast as the DJIA here in midwest
We have a far greater shortfall in our Crude Oil Production compared to our refinery capacity. We could triple our domestic oil production before we reached the capacity of our existing refineries. They would just be running on our own oil instead of imported oil.
Gasoline @ $2.45 in Oklahoma City, OK this morning.
http://www.oklahomacitygasprices.com/
Gas prices will go down eventually....the gas your are putting in your cars was bought by the retailer at a higher price....based on the higher oil prices of weeks ago
Also, in the Southeast, you also pay for the costs of repairing the affected refineries...and also the lower supply (supply/demand thingy)
When gas prices start to drop...they may stay low for awhile. There will be less demand as the economy continues to slow
Pretty soon it will be economical to make napalm again.
Not yet, ExxonMobil Beaumont Refinery is still shutdown. Valero's Houston Refinery just went into startup yesterday. Another 7 are still on reduced rates due to damage from the hurricanes.
Hurricane Ike Situation Report # 24
October 9, 2008 (2:00 PM EDT)
http://www.oe.netl.doe.gov/docs/2008_SitRep_24_Ike_100908_2PM.pdf
Last I heard from the local news, refineries were back up.
Thanks.
You don’t make Napalm for economic reasons, you make napalm for fun.
(I don’t know how I managed to to get this old and still keep all my fingers...)
At it’s philosophical core, ‘fixed’ prices or ‘what SHOULD prices’ be is Marxist.
Prices are, what they are because of a constantly changing political, economic, physical and human behaviour. Since, non but Marxist think those factors can be fixed, and thus gas prices, housing, justice can also be ‘fixed’.
But they can not be ‘fixed’. They and everything else is always changing.
As an aside that is why Obambi’s ‘Change’ is so stupid, yet smart. American and the world is always changing. Change is a constant, and owned by no one. Obambi might as well said he’s for sunshine and kittens.
Americans will be able to afford gas again. Thanks to Barney Frank and friends, we can’t afford to go anywhere, but we got gas.
So how come when it goes up, the price of gas goes up overnight? But when it goes down, the price of gas takes 2 weeks to reflect it?
I guess I am just paranoid and distrustful.
Yep. I know that the southeast pipeline was affected by Ike, but I had heard it was up and running to capacity again. Another poster said it wasn’t.
I’m confused. I haven’t been out since yesterday, maybe it dropped overnight.
That was a joke.
Lastly, we need to have the mindset here that the US must domestically produce 60% of its consumables (manufacturing of retail goods).
Love your tagline.....I pray daily for this nation and the hearts of mankind, plus blessings for friends and family, etc.
To start that process, voters need to take those ideas as priorities into the voting both.
$3.59 to $3.77 here in Raleigh, NC as of this morning.
“It should be at $25.00”
No, it should be free. Oil care is a right.
/s
Thanks, I took it from my wife. She keeps it framed on our wall at home.
It is the only one I’ve ever used here.
Keep looking around:
Thanks for keeping us FReepers up on the oil industry....you inputs are well received on this end.
DOW futures down -258 @ 8:47 AM. Bottom hopefully is close...still no regulations for transparency of derivatives, regulation to limit speculation of commodities by non-use entities.
Still no Obammy birth certificate.
$2.69 in Kansas.
Me either, and both eyes. “It’s always fun until someone loses an eye!” /Mom
Oil $78!
change! because I am present!
anyone against the OBAMA CRASH is a racist...
Once as a child, I actually managed to launch the brown paper bag filled with trash that I was supposed to burn out of the 55 gallon drum we used as our burn barrel.
It was a beautiful sight seeing that flaming garbage arch across the sky.
(Okay, it was more of a plop barely over the rim. It had taken me more than a month of trial and error, lots of error, to get right amount of gasoline/fumes and appropriate spacing and finally a lightweight bag of garbage...)
It;s funny that I don’t hear the pols excoriating the evil oil companies ove these price drops.
CNN is goign to cut to Obama who is going to speak about the OBAMA CRASH.
3.69 west of Chattanooga. Down 20 cents from last week.
Are your refinery stats based on all the different blends that Clinton demanded?
They are inclusive of all the different grades of gasolines produced.
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