Oil Prices Fall Below $90 Amid Financial Crisis Worries

bear creek burnout · Post by **bear creek burnout** » Mon. Oct. 06, 2008 5:50 am

Light, sweet crude for November delivery was down $4.69 to $89.19 a barrel in electronic trading on the New York Mercantile Exchange by late afternoon in Singapore.

Oil prices have tumbled nearly 40% since peaking in July. The Nymex front-month contract last traded this low in early February.

Freddy · Post by **Freddy** » Mon. Oct. 06, 2008 7:08 am

Good news!

I'll be ason of a gun. I have been saying that we'd never, ever, see gasoline go below $3.35 again. Yesterday one station in town was $3.34.

While the low prices are good, we must remember, all it takes is one glitch anywhere in the world and zoom, back up they go. A storm, a terrorist attack, a leaky ship, a refinery burns, and we'll looking at $5 a gallon the next morning.

billw · Post by **billw** » Mon. Oct. 06, 2008 7:10 am

Gouge me once shame on you, gouge me twice shame on me. They can still drink the 800 gallons of fuel oil I used to use.

bear creek burnout · Post by **bear creek burnout** » Mon. Oct. 06, 2008 8:23 am

Freddy....you nailed it.....don't be fooled by this....although it's always good news for gas prices & home heating oil I think it's just a "reverse spike" in prices that will again reverse itself in a heartbeat.

chabbo · Post by **chabbo** » Mon. Oct. 06, 2008 8:24 am

Freddy, you forgot the most important threat to a continued rise in oil prices, viz., in light of the massive mounting US debt, the debasement of the dollar will continue, leading to hyperinflation and oil prices to soar. When that happens (and more importantly the severity of the price increases) all depends upon when our foreign creditors start flooding our dollars back into the US domestic market. I am more convinced now than I was 3 months ago when I started the coal conversion, that my decision to transition out of oil was the only way to insulate me from soon to be expected higher heating costs.

JMO,

Manny

ken · Post by **ken** » Mon. Oct. 06, 2008 11:57 am

all it takes is one screw up in the world to jack it up. I predicted 3 months ago oil would $75 to $80 buy the end of the year. when gold , platinum , rhodium and silver started to dive. the dollar has really made some ground in last couple weeks. a strong US dollar will have an effect on everything. Asia and Europe are now having big problems in housing and banks. overall there will be less demand for oil. Opec will either cut back or leave it alone. those countries are in double digit inflation. the made tons of $ , but now it's coming back to hurt them. the people there are not very happy. they import everything , but oil.

Post by **coaledsweat** » Mon. Oct. 06, 2008 1:48 pm

Just fell into the $80s.

coalmeister · Post by **coalmeister** » Mon. Oct. 06, 2008 2:25 pm

I expect oil to go lower, much lower. The despots that have most of the oil reserves use the oil money to keep the natives from getting restless, now its baked into their budgets. So when oil plunges, they have to start cheating on OPEC to try to make it back on volume, which turns into a tasty downward price spiral .

I hope Chavez ends up swimming in it!!

coalmeister · Post by **coalmeister** » Mon. Oct. 06, 2008 2:30 pm

chabbo wrote: all depends upon when our foreign creditors start flooding our dollars back into the US domestic market.

JMO,

Manny

Manny,

When do you think the Chinese will tire of lending us billions of dollars every week? I am shocked they say nothing and just keep writing the checks.

Maybe they have big plans for us... Start practicing your Chinese-

Post by **coaledsweat** » Mon. Oct. 06, 2008 2:50 pm

coalmeister wrote:I hope Chavez ends up swimming in it!!

With any luck, the SOB can't swim!

bear creek burnout · Post by **bear creek burnout** » Wed. Oct. 15, 2008 7:19 pm

Happy Days??.....hardly.....

10/15/08 : U.S. crude fell $4.09 a barrel to settle at $74.54, falling to $74.22 in post-settlement Globex electronic trading, the lowest since September 2007 and down nearly 50 percent since hitting a record over $147 in July.

traderfjp · Post by **traderfjp** » Wed. Oct. 15, 2008 8:13 pm

A lot of people thought we would never see 100.00 a barrel oil again. OIl will be oversold as it was over bought.

billw · Post by **billw** » Wed. Oct. 15, 2008 8:41 pm

I might be tempted to buy 50 gallons of heating oil just in case the coal unit breaks.... Nah.

av8r · Post by **av8r** » Wed. Oct. 15, 2008 8:46 pm

I'm still hoarding as much coal as I can afford....OPEC and our greedy oil barons/politicians will find a way to get oil back up where they want it. They've tasted blood and will not be able to control themselves.

Mike Wilson · Post by **Mike Wilson** » Fri. Oct. 17, 2008 12:00 pm

I called the oil company yesterday and put in an order, and the oil guy just drove out of the driveway. They put another 500 gallons into the tanks at $2.51/gallon. That's it, 1100 gallons in the tanks, 3 cords of wood in the driveway, and hopefully we're bunkered up for a while. Next, the coal delivery.

Now where's that damned Keystoker...

-- MW