The Price of Oil is dropping rapidly

[Hornius Emeritus]

Down from a high of 135 to 122 a barrel. Down two bucks a barrel today. I wouldn't be surprised to see it drop below 100.

Of course, we're still just one geopolitical crisis away from gas being six dollars a gallon, but that's probably been true for years.

 

[NEWDOC2002]

Six dollars a gallon?

 

[Fightin' Horn II]

Why do you think its dropping?

 

[DigglerontheHoof]

Obama's nomination. Now folks know all will be right w/ the world.

 

[softlynow]

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[fratboy_legend]

going to be interesting to see both sides of the aisle claim influence here.

i think spot prices have been well below forward for weeks now.

 

[Roger]

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[DCA_HORN]

I guess congress finally pressured Exxon into dropping the price of oil.

 

[notreally]

Wow. Tom, that might have been the most partisan post I have read today.... trying to link our presence in Iraq to falling oil prices. I'm speechless.

 

[DeadHorse]

Has supply had a big increase? Has demand had a big decrese? I thought oil was tied to supply and demand.....

Oil has been a bubble for a long time and the money is slowing starting to realize that and it's looking to go elsewhere. We'll have $80 oil by the end of the year.

 

[SubliminalHorn]

You have to give it Tom, he never waivers.

 

[Bevo-Stevo]

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[triplehorn]

Sounds like there's real concern about speculation driving an oil bubble. The day this ongoing probe was announced, I believe I heard the price of oil dropped $8 bbl by close:

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[Larry T. Spider]

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[Summerof79]

Tom's right- the knowledge in the Middle East that Obama is going to be President has brought some of the leaders of the middle east to the table. The reaction to Obama's impending Presidency is amazing isn't it Tom Wingo?

What I want to see is if gasoline at your local pump drops 14 cents tomorrow. Since I hear so many "conservatives" over the year "explain" how its the spot price that determines the sale price and that's why overnight gasoline will increase in price. If that is an honest and valid argument then we all see at least a dime decrease in gasoline at your neighborhood pumps tomorrow gas soen .16 to $3.19 as of a second ago.

ANYONE want to bet the price falls by the change in spot gasoline tomorrow?

 

[TahoeHorn]

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[washparkhorn]

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[FondrenRoad]

We shall see. A ~15 dollar price rise per barrel would be reflected at the pump within the week. I doubt we'll get that type of downward movement. Nor will we get a price decrease that is even close to the amount that they would raise the price were oil to go up at the same rate. The next time oil hits 100, I imagine gas will be 50 to 75 cents more per gallon than the last time we were at 100.

And know, its not 1 company. Its called collusion. They all have essentially the same goals.

 

[pevodog]

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[TahoeHorn]

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[FondrenRoad]

The collusion is in US refining and distribution.

 

[fratboy_legend]

on this...

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[DCA_HORN]

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[fratboy_legend]

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[FondrenRoad]

So fratboy,

If oil went down to 10 dollars a barrel in 6 months, do you think gas would be a dollar a gallon?

The proportion I spoke of is of upward vs. downward movement. Not oil to gas, but I'm glad you posted that.

So your math gives us a 2.5 cent increase for every dollar increase in the oil price. What do you think we get for every dollar decrease in the oil price?

 

[FondrenRoad]

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[general35]

Have we already forgotten Enron?
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When did enron manipulate the price of oil or any commodity?

 

[TahoeHorn]

I'd like to know more about this collusion. You haven't given me enough info to understand how to profit from it.

en.wikipedia.org/wiki/List_of_oil_refineries

Which refineries are in on it? What happens to those who don't "play ball"? Who are the leaders? The refinery nearest me is Hunt Refinery in Tuscaloosa; I buy my gas from a small retailer called Wavaho; a distributor (not Hunt, a trucker) brings the gas to Wavaho. Who is making the big bucks? Typically, of course. I'm asking about how the scheme generally works.

Why isn't anybody talking? Surely some two bit refinery, distributor or retailer would spill the beans specifically. I mean like a Pulitzer Prize news series, not some one line assertion from a politician or somebody whose only knowledge of the facts is puming gas into their own car.

 

[fratboy_legend]

i am not commenting on collusion, malfeasance or general wrongdoing. all i am saying is that the price of crude is up drastically more than the price of gasoline.

i think crude is 70% of the delivered cost of gasoline but may be wrong here. I honestly have no idea why gasoline isnt $10 a gallon. i assume its simply because it isnt worth that much. (i.e., no buyers, better use of that part of the barrel of crude, etc.)

 

[FondrenRoad]

Enron manipulated energy prices in California by lowering supply. I didn't say Exxon et al. manipulated oil prices. I said they manipulated gasoline prices.

They use the high price of oil to raise the floor for gas prices. When oil spikes, so do gas prices. When oil dips, gas prices go down, but not at the level they increased.

I'm sure you realize 95% of US gas is refined in the US, so how other countries distribute and refine their gas doesn't affect us much.