[sciencegirl]

Why the heck is oil dropping so much. Is it because Cheveron found more oil in the gulf ? These cheap fuel prices are killing my investment in silver, its making me very very angry....




Grumble, grumble............

Guess I have to bide my time for a while longer.

[KhanCEO]

Short term goes up and down, don't worry about it, long term you will pwn everyone.

[Kylon]

There are a few simple reasons why oil prices have gone down-

1- Big producers have bought a large quantity of oil, pushing prices up, due to the fact they know about Peak Oil.

2- Market Volatility, basically, when someone starts selling a bunch, it tends to have a cascade reaction. When everyone thinks the market is going down, they begin selling theirs, because they don't want to be the person holding worthless goods(in reality, long term, oil prices are just going to go up, and up, and up).

3- Summer vocation season is over, and Winter hasn't begun yet. Labor day marked the last lazy days of Summer, and now its work work work. But, on the other hand, Winter hasn't hit, and isn't causing people to have to spend huge amounts of money on heating oil. So there is a temporary drop in oil prices.

4- The Middle East has become temporarily slightly more stable. This means that there is less of a threat to oil prices, they will be less volatile, which means in the shorterm, people don't have to stock up on as much before the price explodes(it will anyway later).

Factors 3&4 when amplified by the markets tendency to go one way or the other can easily explain the price change.

That's just what I think.
Btw- Some of this information I got from other people.