Oil Prices Drop Below $64 a Barrel

[ECH1969]

Oil prices fell by almost 3 percent Tuesday, dipping below $64 a barrel as worldwide demand and supply threats ease. After a seven-day selloff, crude futures are at their lowest level since late March.

The selling "seems to be feeding on itself," said Michael Gross, a commodities analyst at Liberty Trading in Tampa, Fla. "A lot of big funds that trade oil are trend players."

Bill O'Grady, a commodity analyst at A.G. Edwards & Sons, sees the decline in oil as part of a broader slump for commodities prices at a time when central banks around the world are raising interest rates.

http://www.chron.com/disp/story.mpl/ap/fn/4181413.html

[HockeyMom]

1. Does this mean they will eliminate the Fuel Surcharge ($80 a month)

on my electricity? I really doubt that.

[StClone]

2. November elections approach

Amazing how this all works! Oh sure after Labor Day fuel prices always go down they'll say.

[jwtravel]

6. Maybe it is supply and demand

The prices of gasoline seem to come down every year around Labor Day, not just election years. Bush may almost be Satan, but he and his cronies aren't powerful enough to dictate WORLD prices.

[mikelewis]

8. Actually, they can...

By their friends flooding the market with oil futures, they can drop the price of oil to just about anything they want; their friends being the Saudi's and the other Big Oil companies. Not only can they do it but if they are clever enough, they can even make money on dropping the price by selling short. That runs some risk but when your buddy's the President, I'd bet many of them are willing to take the chance.

[lgn19087]

19. So you're telling me

That the entire world oil market has been manipulated by George Bush? What economic ignorance. The Gulf oil find plus the downward trend that comes in the post-Labor Day season pushed oil down, and when this happened the hedge funds and investment banks, knowing that oil was overbought to begin with, started ringing the register and running. It's created a downward spiral. Believe me, I worked in that business for a lot of years, and still have a lot of friends there. If the Repukes can control world commodity prices, there is nothing they CAN'T do and there is no hope for us. And personally, I think there's no way their that competent.

[louis-t]

10. I have NEVER seen gas prices drop 30% in 2 weeks`

at the end of summer. Oil industry gave * millions, he made them billions, I believe Cheney knows which buttons to push. You don't think an industry would say 'thanks' to dumbass preznit and take one for the team? If oil skyrockets after the election, we'll talk then.

[Rebellious Republican]

11. Maybe its demand and supply....

The GOP has demanded that the oil companies drop their prices to reduce the cost of supply for the average amerikan.

My conservative friend (voted twice for "W" and twice for Jeb) at work, said a month ago, that the price of oil will go down the closer we get to the election. He was right and he used to be a "hard right" kinda of guy. Even he is fed up the Bushit, now he is a "vote the incumbent out" kinda guy. In other words, because he is a proud conservative, he won't just say that the GOP fucked him and that he is voting DEM. As for me I saw the light years ago, just about the time they swift boated John McCain in the primaries of 2000.

Yep, the GOP just don't get it, they have lost the moderates already like me, now they are losing even the most devout.

Here is a little something for the GOP to chew on......

[reprobate]

18. RR, I love that toon. Reminds me of a 3D rendering of something

from Mad Magazine on the 60s. Brings back some fuzzy memories. And the munchies.

[Rebellious Republican]

22. Yea, I thought it pretty much summed up my feelings. The only

thing those arrogant bastards understand is "WWF in your face" kinda of language.

And yes,it gives me the munchies lookin at it!

Ah yes, I remember MAD magazine, here is one that is a little closer to the famed comic book of our youth.

[reprobate]

23. Damn! A Bush-Neuman crossbreed. Who'dda thunk it?

[RoveRage]

14. Yep, pretty much.

More soup for the sheeple.

[Double T]

3. There must be an election coming..........

or something.

[CottonBear]

4. Last Sunday, I purchased regular for $2.27/gallon near Chattanooga, TN.

It is now $2.35 a gallon in my part of NE GA. The elections are looming in the near future and gas prices have plummeted as we predicted.

[NOLADEM]

5. Strangest thing....

I felt the need to change my voter registration to Repuke and use more racial slurs in casual conversation upon hearing this.

:sarcasm:

:hide:

If anyone falls for this blatant manipulation for the election, they should be forced to eat their gas cap.

Can someone please investigate this market manipulation? I am not complaining about gas being cheaper, but I hate when cartels give essentially billions of dollars in unregulated bribe money to the power in charge to assist them in maintaining power for the benefit of the oiligarchy.

[Lindacooks]

7. Remember, when chimp took the office, it was $25 a barrel

or thereabouts.

[lutefisk]

21. True, but the GOP ads will read: "Oil drops 30% Under Bush"

What other President has been this effective, this quickly, at getting Americans cheaper gas?:sarcasm:

[WePurrsevere]

9. Hopefully we'll be able to fill up our oil 2 tanks while it's still low...

I don't think it will shoot up right after Election day but I'll bet it is back up up there right around, maybe right after, the Holidays.

[Ignacio Upton]

12. Agreed

Even if there has been market manipulation of the prices (which is possible) some of the drop off should be expected regardless, because it's the end of the summer driving season. I think that oil prices will go down until Thanksgiving and then go back up. In the long run, though, I think that gas prices will continue going up. I have a hard time believing that they will return to 2001 levels.

[WePurrsevere]

13. There seems to be a strategy where they increase the prices very high

the consumer adjusts a bit to that price but not enough to become too complacent. The oil corps then lower them down a bit, folks are breath a sigh of relief and soon the memory fades that it was actually much lower just months before and they're still paying prices that are much higher then they were.

Here's a personal example: My husband and I were out and saw that regular gas at the local gas station was $2.89. My husband said, "Ya know it's really bad when the first thing that popped into my mind when I saw that price was 'oh, look at that... gas is only $2.89 there.' They really know how to play us don't they?"

I'd be thrilled but extremely surprised if we ever see gas/oil prices as low as before Bush & 9-11. Heck I'd be thrilled and surprised if they go as low as they were pre-Katrine last Fall even. If fair wages, Soc Sec and other forms of income actually kept up with REAL inflation it wouldn't be quite so bad, sadly they don't and probably won't for a long time and although I hope so I wonder if they ever will.

[RoveRage]

15. After getting bent over the hood of our vehicles throughout the summer..

....the Whitehouse figures they'll throw the sheeple a bone before the elections. What a shocker.

[Yavin4]

16. Hey, I Know How To Keep Fuel Cheap Forever

Just have elections every other month!!!

[0rganism]

17. let's start a pool for November 1 prices

Any takers?

I'll lead off with $1.89/gal, national average

[bhikkhu]

20. Bad news, if it renders production less feasible.

That is, so many of the new oil production ventures rely upon high prices for their economic viability - the Alberta Tar sands, coal gasification, Jack #2 and deep-water exploration, etc. While it is hard to look at the massive profits of oil companies while scraping for gas money, historically every time prices fall so does exploration and, eventually, production. And its back on the same ride...

[lgn19087]

24. Exactly

its the roller coaster that is the market economy. For all *s faults, I will say that its better that he didn't get involved. Artificially messing with prices only screws things up.

[Nihil]

25. Only "bad news" to the oil companies and the gamblers.

Reducing production (and hence reducing supply) is wonderful news
for the planet. Shame no-one thinks of that these days ...

[pinniped]

26. We're still getting fleeced.

Check the prices before Asshole rode into town.