Why Oil is Falling: Wall Street Journal item

NoWorries · Tar Sands Joined: Jun 05, 2008 Posts: 79

http://blogs.wsj.com/environmentalcapital/2008/07/16/oil-slick-why-are-crude-prices-falling/

SoylentGreen · Heavy Crude Joined: May 25, 2008 Posts: 168

a good summarization of all the factors except Iran. I heard Banks/financials were dumping thier Oil/energy sector investments because they need the $ to cover bad loans. Oil isnt going much lower for much longer ,buying oportunity soon.

Heineken

Oil has "fallen" like this several times recently.

It's falling because of the perception that the Fed has stanched the financial crisis and that slower growth in the US will mean much less global demand.

Wrong on both counts.

Oil is falling, but any such pullbacks must and will prove temporary and ultimately meaningless.

The Fed has accomplished a temporary psychological boost, but all the debt is still sitting there, unpaid and rising daily.

Oil will always be trending higher, forevermore.
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Carlhole · Knight of the Realm Joined: Jul 05, 2004 Posts: 3270

It's falling because of fears of a global economic slowdown. The range that it has fallen so far is still within the "profit-taking" range though.

If it falls by more than around 15%, then you're looking at something a little more important than normal market fluctuation. And then if it falls by around 20 - 25%, then you're looking at something fundamental - like confirmed signs of a global slowdown.
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Serial_Worrier · Heavy Crude Joined: Jun 05, 2008 Posts: 285

Can you imagine if America starts a big conservation program? It might be happening already? Can you believe in miracles?

SoylentGreen · Heavy Crude Joined: May 25, 2008 Posts: 168

yeah S.Worrier, God could stick his head out of the heavens and point his index finger and all the oil reserves in world will be as full as they were in 1890A.D.

vetusfirma

You have to look at buying something that can only go up with time. Jevrons paradox tells us that any conservation the US does will be sucked up else where. I think this is in part based on reported increase in supplies on hand, and I don't trust the figures. This is an election year, and the government will do strange things in response to the political winds.
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Concerned · Light Sweet Crude Joined: Sep 23, 2004 Posts: 1553

There was a time not so long ago when predicting $130 oil put you in the kooky bin.

Today it's "falling" to $134/$136 *rolls eyes*

Oil will fall from it's highs of around $147/$148 on the back of slowing economic conditions. However continued devaluation of the US dollar by printing more notes and PO means oil can only go up in price.
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jlw61

RedStateGreen

I thought profit-taking when I saw the drop this morning. I'm not sure that people are conserving all that much.

We shall see. Smile

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FoxV

nobodypanic · Intermediate Crude Joined: Jun 02, 2008 Posts: 620

'head fake', buying opportunity, call it whatever you want.

the bottom line is, buy buy, buy. Razz

mmasters

It's falling because there's too much downward pressure and fear in the market which is threatening the manipulated control of it. Oil is their card to ease the downward pressure on the market when it becomes too much. I've been saying this for months. I would expect oil to go higher and soon as we will most likely have some conflict in the ME within the next month and potentially some real left field events come the olympics. The stage is being set though for a significant drop in oil prices come the fall and a large market rally leading up and into the election.
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essex

Price goes down, consumption goes up, price goes back up again.

Don't hold your breath for a " collapse" in price. If it ever gets to $50 then the whole world is bankrupt.

kokoda · Heavy Crude Joined: Aug 24, 2006 Posts: 449

The price will bounce around for a while ... but the long term trend is that it will continue to rise.