NEW YORK (AP) -- Oil prices plunged to a three-month low Monday, briefly tumbling below $120 a barrel in another huge sell-off after Tropical Storm Edouard seemed less likely to disrupt oil and natural gas output in the Gulf of Mexico.

Crude's steep drop -- prices fell more than $5 at one point during the day -- dragged down other commodities from corn to copper and mimicked the big nosedives of the past three weeks, adding to growing beliefs that the oil bubble is at least temporarily deflating.

...

Still, oil market traders expressed surprise that a potential hurricane in the Gulf coupled with escalating tensions with Iran didn't send prices higher -- an almost certainty just a few weeks ago.

"Any market that really doesn't respond to seemingly bullish news is often a tip off that we're going lower," said Jim Ritterbusch, president of energy consultancy Ritterbusch and Associates in Galena, Ill.

He and other analysts have predicted that, barring any surprises, crude could tilt toward $100 a barrel by the end of the year.

Meanwhile, retail gas prices kept falling, reflecting the continuing price-driven drop in U.S. fuel demand. Gas has fallen 5.6 percent since hitting an-all time high above $4 a gallon on July 17, but so far hasn't kept up with oil's steep descent, suggesting struggling filling stations are still saddled with gas bought when crude prices were higher.

"They still have expensive gas to feed into the system, so they're reluctant to drop prices," Ritterbusch said. "Prices never come down as fast as they go up."

Still, Monday's drop in crude was expected to help make retail gas cheaper.

Adding to the bearish sentiment around oil, Democratic presidential candidate Barack Obama on Monday proposed that the government sell 70 million barrels of oil from its strategic reserves to help lower gasoline prices. He had previously opposed tapping the supplies, but said in a major energy speech that past releases from the reserve have "lowered gas prices within two weeks."

quote:

ORIGINAL: popeye1250

Firm, there was never any "shortage."
You could buy all the gasoline you wanted, for a price.
Now all the "players" on Wall St. know that the jig is up, oil futures making money on the upside (calls) are comming to an end.
I wouldn't be surprised to see gas at $2.40- $2.80 per gal by December.
"Demand" has fallen drastically due to the price gouging.
This economy simply can't support $4 gas prices!
We saw a lot of resistance at $3.50 per gal.

quote:

ORIGINAL: FirmhandKY

Hey, UT, didn't realize you had a new profile!

I like it.  Would probably swoon if I was a femsub looking.  (but I'm not so you take your chances by relying on my judgement in that area.)

As for your post, interesting comments, but I'm not sure I understand all the references.

Firm

quote:

ORIGINAL: FirmhandKY

Also, finally, a question.  Will the lowering prices help the Democratic, or the Republican candidate this election?

Firm

quote:

ORIGINAL: DarkSteven

quote:

ORIGINAL: FirmhandKY

Also, finally, a question.  Will the lowering prices help the Democratic, or the Republican candidate this election?

Firm

The answer SHOULD be that the crappy economy, including high gas prices, will favor the Democrats.    But the GOP managed to create a "solution" of offshore drilling and is hammering that the Dems are holding up the solution and keeping gas high.  Amazingly, they are getting away with it.

Obama's campaign has not met this well.  He should be running ads that show what gas cost when Bush took office and now and paint the price rise as the consequence of a GOP administration and simply ask, "Are you tired of the Republican economy yet?"  Not exactly honest, but neither is the oil drilling solution either.

quote:

ORIGINAL: Thadius

quote:

ORIGINAL: DarkSteven

quote:

ORIGINAL: FirmhandKY

Also, finally, a question.  Will the lowering prices help the Democratic, or the Republican candidate this election?

Firm

The answer SHOULD be that the crappy economy, including high gas prices, will favor the Democrats.    But the GOP managed to create a "solution" of offshore drilling and is hammering that the Dems are holding up the solution and keeping gas high.  Amazingly, they are getting away with it.

Obama's campaign has not met this well.  He should be running ads that show what gas cost when Bush took office and now and paint the price rise as the consequence of a GOP administration and simply ask, "Are you tired of the Republican economy yet?"  Not exactly honest, but neither is the oil drilling solution either.

Or perhaps look a the $2 a gallon increase since Pelosi took control of congress?  We are getting screwed, plain and simple.  Why will she not allow a simple up or down vote on the proposals in the House?  I still remember the words as the election results came in... we will fight to lower the price of gas...  What has she done? Blocked votes on proposals by her own party, and the bipartisan ones. http://www.youtube.com/watch?v=F10alN28eyw

Let's face it though, since Bush got rid of the executive moratorium oil prices have dropped by $20 a barrel, if congress was to lift their moratorium we could easily see another $20 or more drop.  Pelosi is playing the lightning rod here, and pointing her finger at the Sith lords in the White House, she is sure that she will win reelection, so it doesn't matter what she does.  Her hand will be forced by the end of Sept though, as the moratorium expires.  This will be an interesting situation to watch.

quote:

ORIGINAL: DomKen
The reality is the Democrats in the House are opposed to new drilling for very good reasons but don't want to give the GOP a vote to campaign on.

quote:

ORIGINAL: DomKen


One more time since none of the right wingers ever answer the question, if drilling is so important why isn't anything being done in the NPR-A? The oil companies have leases on the land and the oil deposits are proven to exist, not true of ANWR and the proposed off shore site.

BTW if a majoirty of House members were demanding votes on this stuff they would happen. If necessary a bipartisan coalition could simply call a vote for a new speaker and put someone else in the chair. The reality is the Democrats in the House are opposed to new drilling for very good reasons but don't want to give the GOP a vote to campaign on. Why is it that when the GOP is in the minority they want their way on everything but when they were in the majority they abused the minority in ways that far exceed this trivial stuff? What was good for the goose is good for the gander.

Oil prices decline as low as $118 on concerns that US slowdown is hurting fuel demand

NEW YORK (AP) -- Oil prices kept falling Tuesday, sinking as low as $118 a barrel on growing concerns that a U.S. economic slowdown and high energy costs are curbing consumer demand for gasoline and other petroleum products.


...

A day after plunging as much as $5 a barrel in a dramatic sell-off, crude continued its downward trend Tuesday as traders sold oil contracts on the belief that prices are still too high in relation to demand and have further room to fall.

...

"The market psychology has finally shifted," said Stephen Schork, an analyst and trader in Villanova, Pa., adding that "$4-a-gallon gasoline has clearly killed demand."

...

In other Nymex trading, heating oil futures fell 3.55 cents to $3.3146 a gallon, while gasoline prices dropped 4.67 cents to $2.9535 a gallon.

quote:

ORIGINAL: TieNTeas

quote:

ORIGINAL: DomKen


One more time since none of the right wingers ever answer the question, if drilling is so important why isn't anything being done in the NPR-A? The oil companies have leases on the land and the oil deposits are proven to exist, not true of ANWR and the proposed off shore site.

BTW if a majoirty of House members were demanding votes on this stuff they would happen. If necessary a bipartisan coalition could simply call a vote for a new speaker and put someone else in the chair. The reality is the Democrats in the House are opposed to new drilling for very good reasons but don't want to give the GOP a vote to campaign on. Why is it that when the GOP is in the minority they want their way on everything but when they were in the majority they abused the minority in ways that far exceed this trivial stuff? What was good for the goose is good for the gander.

http://www.instituteforenergyresearch.org/2008/07/10/alaskas-northern-coastal-plain-npr-a-prudhoe-bay-and-anwr/