I am eying one of those nice Hummers everyone is talking about.....
Oil falls to $121, lowest since May | Markets | Hot Stocks | Reuters
Oil falls to $121, lowest since May | Markets | Hot Stocks | Reuters
I am eying one of those nice Hummers everyone is talking about.....
Oil falls to $121, lowest since May | Markets | Hot Stocks | Reuters
The main traditional factor that has been in oil is the weak dollar. I would hardly paint a rosy outlook for the dollar just yet, however.
The president of OPEC, Chakib Khelil, on Tuesday called the current price "abnormal" and said he did not think the producer group should consider cutting output should prices continue to fall as markets were now balanced.
Khelil, who is also Algeria's oil minister, said oil could fall to $70 to $80 in the long term, if the U.S. dollar continued to strengthen and geopolitical concerns eased.
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Now where have I heard that before?
Oil was bound to burst, because it was loaded by a spec frenzy...and traditional market factors were being overshadowed by emotion and the impact of the big funds...
The main traditional factor that has been in oil is the weak dollar. I would hardly paint a rosy outlook for the dollar just yet, however.
Whoa.... I just agreed with Jon Miller. Somebody pinch me?!
I just ran out into my yard and dumped a gallon a gas on the ground for no reason. That is how cheap it is now.
Add in lifting the executive ban on offshore drilling, and I am with you.No doubt the value of the dollar has a major long term effect on the price of oil, and with record deficits, there is not a rosy outlook as John said. But the price peaked as the rhetoric against Iran peaked (including the Israeli bombing exercises). Once the threats stopped and it looked like Bush was actually softening his stance and considering talks, the price broke and has been going down ever since. Iran's President what's his name also said he is encouraged by the change in attitude and is encouraged it may lead to improved relations. I would bet the farm that if it looks like us or Israel is again moving toward bombing Iran, the price will spike again.
No doubt the value of the dollar has a major long term effect on the price of oil, and with record deficits, there is not a rosy outlook as John said. But the price peaked as the rhetoric against Iran peaked (including the Israeli bombing exercises). Once the threats stopped and it looked like Bush was actually softening his stance and considering talks, the price broke and has been going down ever since. Iran's President what's his name also said he is encouraged by the change in attitude and is encouraged it may lead to improved relations. I would bet the farm that if it looks like us or Israel is again moving toward bombing Iran, the price will spike again.
All these things definitely effect it, methinks the real reason oil prices are dropping is investors are pulling their money out of it, for a multitude of reasons including those threats.
Less investors buying futures = lower oil costs.