My take is the price of gas will plummet around the summer of 2012, but it may again rise after November of 2012.
Oil crashes 10 percent in record rout
http://news.yahoo.com/s/nm/20110505/bs_nm/us_markets_oil1
NEW YORK (Reuters) – Oil collapsed into free-fall on Thursday, diving 10 percent and sending U.S. crude back under $100 a barrel as investors staged an unprecedented stampede for the exits.
Weak economic data from Europe and the United States fed concerns that have battered commodities all week. German industrial orders fell unexpectedly in March while U.S. weekly jobless claims hit eight-month highs, sparking a fourth day of profit taking in early trade.
But the onslaught of selling went far beyond any single cause. Brent crude plunged more than $12 at one point — exceeding the sell-off that followed Lehman Brothers’ collapse. U.S. crude broke below $100 for the first time since March as technical triggers set off a cascade of sell-stops.
Shell-shocked traders said the decline that has more than halved this year’s oil price gains might not be over yet, but few were ready to call an end to the long bull run.
“The longer-term bull cycle is still in place, but this correction may have a life span of several months, as weaker economic data is fueling this correction to a large part,” said Sterling Smith, senior analyst for Country Hedging Inc in Minnesota.
...
Brent crude futures for June settled down $10.39 at $110.80 a barrel, before dropping as low as $109.02 in post settlement activity in the fourth straight day of losses that sent prices breaking below the 50-day moving average.
U.S. crude settled down $9.44 at $99.80 a barrel, before hitting $98.25 a barrel in post-settlement trade, marking the second-biggest one day loss in dollar terms on record.
We are still in a voracious deflation and the only money out there is what the Fed gave away for free to the banks, insurance companies and other large institutions. The only place THEY could put it was in commodity and stock markets.
Some folks are going to get burned, big.
If you bough silver at any price above $25...you are going to get hammered.
It’s a sign the recovery is over. Oil prices drop as demand goes down due to economic downturn.
oh, is that the reason it went up here again today?
Speculators are taking profits.
1. The current futures price is WAY too high considering that at least here in the USA, there are no supply issues with both crude oil and gasoline. Also, all the refineries have fully converted to summer blend gasoline, so production bottlenecks are gone. In short, the invisible hand will hit the oil companies soon because there are fewer buyers for such expensive petroleum products, and I don't think the oil companies want to be "holding the bag" on way too much expensive petroleum products!
2. There's also a political angle: the oil companies have to start cutting the price as a favor to President Obama or he will suffer the same fate that befell President Carter in 1980. The DNC saw what happened to Carter and they don't want a perfect repeat of that experience!
It appears that hedge funds are getting out of commodities thus sparking this drop.
Will we hear people complain about speculators and hedge funds now?
Probably not....
You won’t see relief at the pumps for awhile but could this be a sign that the worst of the oil price crisis is over?
Thank goodness. I am glad that it is over. It may take a few weeks to lower the price but that is ok as there is light at the end of the tunnel.
At this point, I honestly cant tell of this is a good thing or a real real bad thing. It seems like something we should feel happy about but it seems like it is a sign of something horrible coming.
Supply and demand didn’t account this latest runup. May it not limit the crash.
the price is being manipulated up and down, and those responsible for the manipulation up are responsible for the manipulation down
Obama is in the pocket of Arab Oil.
And gas (and food) prices will keep on rising.
Now oil is rising sharply again. The “news” (propaganda) on the economy yesterday was all negative and scary. Nearly seizing the western economy and realizing their mistake, the masters of the universe reversed the propaganda today. We’re in a recovery! ;-)
Prices have to drop to make their NWO boy Obama look good.