Skip to comments.OIL FUTURES: Nymex Crude Hits 2010 Low On Demand Concerns
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.
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But...but...the economy is recovering, demand has to go higher. ;-)
Even with all that oil pouring into the gulf for 3 weeks, it’s down by $20/bbl.
Here’s me holding my breath for gas PRICES to start dropping...
Wow, a WHOLE LOT of people must be boycotting Arizona for their summer vacations! /sarc
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.
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.
You think crude prices will drop back down to $40 or $50 per barrel because of the oversupply and the lack of demand?
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.
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?
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.