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Oil drops below $70

Discussion in 'Political Discussion' started by Real World, Oct 16, 2008.

  1. Real World

    Real World Moderator Staff Member

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    It's roughly $70 right now. I just wanted to share the good news. Gas is still too expensive though. I saw $2.85 yesterday at the HESS in Saugus, and $2.76 at Citgo in Peabody.

    10/16/2008 12:04:08 EST

    Oil down on big jumps in US crude, gas supplies

    By STEVENSON JACOBS
    AP Business Writer

    NEW YORK - Oil plunged below $70 a barrel Thursday, bringing its price to less than half its July record high after the government reported massive increases in U.S. crude and gasoline supplies.
    Investors took the news as more evidence that a global credit crisis and a shaky economy are curbing demand for oil, which hasn't been this cheap in nearly 14 months.

    The selloff came despite an announcement by OPEC on Thursday that it was moving up by almost a month an emergency meeting to discuss oil's rapid drop in value. The Organization of the Petroleum Exporting Countries will now meet Oct. 24 in Vienna, Austria, instead of Nov. 18, the cartel said in a statement.

    Light, sweet crude for November delivery dropped as low as $69.15 a barrel on the New York Mercantile Exchange before gaining slightly to trade down $3.81 to $70.73. It was crude's lowest trading level since Aug. 22, 2007.
  2. PressCoverage

    PressCoverage Banned

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    well, it ballooned to completely unreasonable levels the past 18 months... this is about where it should be... especially considering the West's economic horizon...

    but it's still double what it was when Boy King and Co. acknowledged Peak Oil...
  3. scout

    scout Rookie

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    #15 Jersey

    I was going to post this article the other day concerning a whistleblower who states that the oil watchdog group were taking gifts and sex from oil executives as the oil companies raked over the taxpayers. All of this started shortly after George Bush took office.

    Whistleblower: Oil watchdog agency 'cult of corruption' - CNN.com
  4. MrBigglesWorth

    MrBigglesWorth Rookie

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    somebody made a TON of money
  5. reflexblue

    reflexblue PatsFans.com Supporter PatsFans.com Supporter

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    #91 Jersey

    HMM RW lets see how fast gas and fuel oil drop. It seems tha while crude has been dropping rapidly gas prices haven't kept pace.
  6. ELOrocks17

    ELOrocks17 Guest

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    Its still $3.15 a gallon here in Phoenix
  7. Real World

    Real World Moderator Staff Member

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    I've been noticing the same thing flex. One thing I do realize, is that oil prices, and gas prices, aren't always one and same, or haven't been reflective of each other hsitorically. Obviously so goes oil, goes gas, but I mean that oil doubling does mean gas exactly will too. When oil was $10 per say, gas was $1, so it hitting $100, doesn't mean gas goes to $10. Still though, it's halved, and gas has only come down 33% or so. I'm gonna see where gas was a year ago, when oil was around what it is now. I bet it was $2, and not near $3.
  8. reflexblue

    reflexblue PatsFans.com Supporter PatsFans.com Supporter

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    #91 Jersey

    I think it was around 2.40 for premium around here at this time last year.
    My point is because of speculation(that something is going to interupt the supply,i.e. a moose running into a pipe line :D) gas goes up almost instantaniously but drops very slowly. Maximizing profit on both ends. When crude goes up and when crude goes down.
    Last edited: Oct 16, 2008
  9. MrSparkle

    MrSparkle Rookie

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    Gas prices always go up fast and come down slow. It's how they roll.

    I wonder when the Airlines are going to jump back in and buy their hedges again. I'm shocked how fast and how low they have dropped.

    I'm also waiting for the other shoe to drop. I remember reading here that Iraq needs to have oil over $110 and Iran needs it to be over $90. If it stays ~$70ish I'm almost positive something is going to happen.
  10. Patsfanin Philly

    Patsfanin Philly Rookie

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    #95 Jersey

    And Venezuela is tied into below market deals for most of their oil contracts. They make their money on the oil sold to the US. If the price comes down precipitously it really hurts their economy. couldn't happen to a nicer guy...........
  11. Leave No Doubt

    Leave No Doubt PatsFans.com Supporter PatsFans.com Supporter

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    Sometimes it's so hard to wrap your mind around just how greedy and corrupt this govt really is on so many levels.
  12. Patters

    Patters Moderator Staff Member PatsFans.com Supporter

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    With oil now below $70, it probably means that there was price collusion when oil was high and that the world economy is slowing down so much that oil demand has dropped considerably. That said, it's certainly good news for people in cold climates who have to heat their homes, though the price is still on average about $3.40 for home heating oil.
  13. MrSparkle

    MrSparkle Rookie

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    Lets hope it falls more.

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