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OIL FUTURES: Nymex Crude Hits 2010 Low On Demand Concerns
Wall Street Journal ^ | May 17,2010

Posted on 05/17/2010 10:55:33 AM PDT by SeekAndFind

NEW YORK (Dow Jones)--Crude futures dropped Wednesday as doubts about future oil demand sent prices to a 2010 low.

Light, sweet crude for June delivery traded $1.83, or 2.6%, lower at $69.78 a barrel on the New York Mercantile Exchange after dropping to $69.27 a barrel, the cheapest the front-month contract has traded since December. Brent crude on the ICE futures exchange traded $2.54, or 3.3%, lower at $75.39 a barrel.

(Excerpt) Read more at online.wsj.com ...


TOPICS: Business/Economy; Culture/Society; News/Current Events
KEYWORDS: crude; energy; low; oil

1 posted on 05/17/2010 10:55:33 AM PDT by SeekAndFind
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To: SeekAndFind

But...but...the economy is recovering, demand has to go higher. ;-)


2 posted on 05/17/2010 11:03:09 AM PDT by rhombus
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To: SeekAndFind

Even with all that oil pouring into the gulf for 3 weeks, it’s down by $20/bbl.


3 posted on 05/17/2010 11:08:00 AM PDT by Uncle Chip (TRUTH : Ignore it. Deride it. Allegorize it. Interpret it. But you can't ESCAPE it.)
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To: Uncle Chip
Even with all that oil pouring into the gulf for 3 weeks, it’s down by $20/bbl.

This is an indicator of the market's feeling about industrial production, transportation, air and land travel, tourism and other industries. They DON'T expect these industries to pick up anytime soon.
4 posted on 05/17/2010 11:12:21 AM PDT by SeekAndFind
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To: SeekAndFind

Here’s me holding my breath for gas PRICES to start dropping...


5 posted on 05/17/2010 11:16:36 AM PDT by Fedupwithit ("The welfare of humanity is always the alibi of tyrants" -Albert Camus)
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To: rhombus
The liars that keep saying things are improving will not be able to keep up their charade much longer... hunger and being broke is something even a stupid fricking dim understands.

LLS

6 posted on 05/17/2010 11:25:48 AM PDT by LibLieSlayer ( WOLVERINES!)
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To: SeekAndFind

Wow, a WHOLE LOT of people must be boycotting Arizona for their summer vacations! /sarc


7 posted on 05/17/2010 11:28:42 AM PDT by Buckeye McFrog
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To: SeekAndFind

Crude prices started slipping at the beginning of May. Any one have an answer as to why?


8 posted on 05/17/2010 11:33:19 AM PDT by Jack Hydrazine (DOH!!!!)
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To: Jack Hydrazine
Crude prices started slipping at the beginning of May. Any one have an answer as to why?

There was great speculation that, with an improving world economy, oil usage would increase dramatically. That hasn't happened.

9 posted on 05/17/2010 12:19:35 PM PDT by BfloGuy (It is not from the benevolence of the butcher, the brewer, or the baker, that we can expect . . .)
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To: Fedupwithit
3 year chart of pump/crude prices here
10 posted on 05/17/2010 12:40:12 PM PDT by Proud_texan (Scare people enough and they'll do anything.)
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To: Jack Hydrazine

There isn’t any more place to hide the global overproduction. Tanks and tankers are full of oil and distillate and all the hopes and hype for “booming Asian demand” are pure fallacy. You can’t hedge and there’s no more room to hold supply for better days. The market is imploding due to oversupply.


11 posted on 05/17/2010 1:47:19 PM PDT by sbMKE
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To: sbMKE

You think crude prices will drop back down to $40 or $50 per barrel because of the oversupply and the lack of demand?


12 posted on 05/17/2010 2:06:04 PM PDT by Jack Hydrazine (DOH!!!!)
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To: sbMKE

if oil prices went back to 30-40@ barrel—it would work out to be a tremendous world wide tax cut — which would be enormously stimulative to the world economy.


13 posted on 05/17/2010 3:30:54 PM PDT by ckilmer (Phi)
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To: Jack Hydrazine

It really seems like there is significant political will to push oil to $140 rather than allow a slide to $40.

That said, can you name any other time in recent memory when an event like the Gulf of Mexico spill didn’t cause an immediate surge in gas and oil prices?


14 posted on 05/18/2010 1:34:50 PM PDT by sbMKE
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To: sbMKE

That’s the question I’ve had. Usually any tremor in the oil markets like this one is a quick excuse to jump the prices a bit. Reality has started to creep in. There’s no recovery, Europe is going down the drain with major volcanic eruptions on the way from Iceland, and China’s economy is slowing down. As a result, the demand curve is being overshot by the supply curve.


15 posted on 05/18/2010 2:57:37 PM PDT by Jack Hydrazine (DOH!!!!)
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