Crude closes at 16 month low

[pscot]

A surging dollar and sinking demand cause oil and other commodities to tumble.




http://www.marketwatch.com/news/story/oil-closes-16-month-low-demand/story.aspx?guid=%7B37F95BEC%2DAE5F%2D4EBB%2D88F2%2D325911908F14%7D

Crude-oil futures closed at their lowest level in more than 16 months Wednesday as worries over slowing demand combined with four weeks' worth of rising U.S. crude and gasoline supplies to pull prices down by 7.5% -- despite market expectations that key oil producers will cut output.
"If the threat of cutbacks at the OPEC meeting sent any bears into hibernation this ought to bring them out of their caves," said James Williams, an economist at WTRG Economics.
"
The combination of a stronger dollar and a report that shows very strong increases in crude and product inventories, coupled with total consumption down 8.5% (1.7 million barrels) from last year, is very negative for oil prices," he said.

On its first full day as a front-month contract, crude for December delivery dropped $5.43 to close at $66.75 per barrel on the New York Mercantile Exchange. That was the lowest closing level for a front-month contract since June 13, 2007.
Prices touched a low of $66.20 per barrel in electronic trading on Globex.

[DJ13]

1. Great, so why is gas still $3.30 here in California?

[pscot]

2. I feel your pain

But hey, oil execs gotta live too, ya know. Do you realize what a tub of beluga caviar and a couple of magnums of Dom Perignon cost today?

[excess_3]

3. boutique gas --> boutique prices .n/t

[FREEWILL56]

4. Do you really need to ask

because you know the answer to that one.