[Gerben]

$this->bbcode_second_pass_quote('Starvid', 'W')hich means the government becomes flush with money and has been signaling lower income taxes. Yay!

[Starvid]

$this->bbcode_second_pass_quote('Drifter', '')$this->bbcode_second_pass_quote('Starvid', 'H')igh gas prices are perfect for me. First, I don't have a car so I don't give a shit how much gas costs. Or actually I do. Higher gas prices means more money to Exxon shareholders like me.

As gas prices increase, so does government tax revenue as the gas tax is linked to the gas price. Dearer gas -> even higher gas tax.

Which means the government becomes flush with money and has been signaling lower income taxes. Yay!

[bodigami]

$this->bbcode_second_pass_quote('Drifter', '(')...) All we can do now is prepare and not worry so much about the ignorance of others. They will eventually wake up to the reality of peak oil.

[bodigami]

$this->bbcode_second_pass_quote('Drifter', '(')...)
Petrol pain set to last until 2016
(...)

[ptomeyrules]

$this->bbcode_second_pass_quote('drgoodword', '')$this->bbcode_second_pass_quote('Drifter', '
')I expect an even bigger jump in gasoline prices, because it will have to catch up with oil prices sooner or later.

[ColossalContrarian]

$this->bbcode_second_pass_quote('ptomeyrules', '')$this->bbcode_second_pass_quote('drgoodword', '')$this->bbcode_second_pass_quote('Drifter', '
')I expect an even bigger jump in gasoline prices, because it will have to catch up with oil prices sooner or later.

[NoWorries]

http://blogs.wsj.com/environmentalcapit ... s-falling/

$this->bbcode_second_pass_quote('', ' ')July 16, 2008, 11:01 am
Oil Slick: Why Are Crude Prices Falling?
Posted by Keith Johnson

After crude oil’s biggest one-day drop in 18 years, there’s been no bounce—not even a dead-cat bounce. Crude kept falling in early Wednesday trading, even as the dollar rattled around at record lows against the euro.

...

But if it’s not supply or demand, then what’s pushing oil prices down? A lot of traders say technical factors, from electronic trading programs that pull the trigger at certain price points, to a slew of options set to expire tomorrow. At the same time, cash-strapped banks that invested heavily in commodities could be unwinding positions to get their dough. That is—oil’s recent slide doesn’t herald a return to $60 barrels, but is just the market hitching up its pants a la Arnold Palmer before another charge at the peak.

EC readers, with oil prices still falling, is there any answer for why?

[SoylentGreen]

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.

[Carlhole]

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.

[Serial_Worrier]

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

[SoylentGreen]

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.

[Concerned]

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.

[jlw61]

$this->bbcode_second_pass_quote('vetusfirma', 'Y')ou 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.

[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.

[FoxV]

$this->bbcode_second_pass_quote('RedStateGreen', 'I') thought profit-taking when I saw the drop this morning. I'm not sure that people are conserving all that much.

[nobodypanic]

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

the bottom line is, buy buy, buy.

[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.

[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.