[Jack]

$this->bbcode_second_pass_quote('smallpoxgirl', 'M')y take, oil prices finally got high enough that demand destruction happened and price is correcting down to a more sustainable slope.

[energycity]

$this->bbcode_second_pass_quote('jdumars', 'W')hat is going on? What has fundamentally changed?

[smallpoxgirl]

$this->bbcode_second_pass_quote('Jack', 'T')hree day's action does not a trend make.

[FoxV]

$this->bbcode_second_pass_quote('jdumars', '')$this->bbcode_second_pass_quote('JJ', 'd')itto...they were ridiculing me at work yesterday...stock markets up, oils down, blah blah... hows that nostradamus...

[Twilight]

[url=http://uk.finance.yahoo.com/q/bc?s=^FTSE&t=my&l=off&z=l&q=l&c=]If they insist on asking, draw them a picture.[/url] Looks really nice when you step back, doesn't it? I might buy in three years' time once it is safely below 4,000. We'll see. At that point we might be blowing a green bubble we can ride.

[Jack]

$this->bbcode_second_pass_quote('smallpoxgirl', '')$this->bbcode_second_pass_quote('Jack', 'T')hree day's action does not a trend make.

[smallpoxgirl]

$this->bbcode_second_pass_quote('Jack', 'T')rue. And point and figure includes a count down to $120.

[Jack]

$this->bbcode_second_pass_quote('smallpoxgirl', '')$this->bbcode_second_pass_quote('Jack', 'T')rue. And point and figure includes a count down to $120.

[heroineworshipper]

If a 53% drop in earnings make stocks go up 300 points, imagine what a 100% drop in earnings can do.

[drgoodword]

Typical bear market volatility.

Oil is in uncharted territory, so I'd expect short-term volatility and sensitivity.

Tomorrow the dow will drop on range profit-taking, all other things remaining relatively the same.

[Mominator]

$this->bbcode_second_pass_quote('smallpoxgirl', 'M')y take, oil prices finally got high enough that demand destruction happened and price is correcting down to a more sustainable slope.
<snip>

It's pretty amazing to watch isn't it?

[smallpoxgirl]

$this->bbcode_second_pass_quote('Mominator', 'I')t was pretty neat to see how much better everything did with just two days of oil prices dropping a little.
If it really is demand destruction at work it gives me a little hope that there won't be an economic crash as soon or as quick as I thought.

[Kingcoal]

It's pretty obvious that Wall Street is oil's bitch. Oil goes up, the market goes down and vice versa. Oil will fluctuate for years, but the longterm trend will be up and that's what people should be looking at. People are looking for the elusive "return to normal" that will never come.

[Mominator]

$this->bbcode_second_pass_quote('smallpoxgirl', '')$this->bbcode_second_pass_quote('Mominator', 'I')t was pretty neat to see how much better everything did with just two days of oil prices dropping a little.
If it really is demand destruction at work it gives me a little hope that there won't be an economic crash as soon or as quick as I thought.

[Mominator]

$this->bbcode_second_pass_quote('Kingcoal', 'I')t's pretty obvious that Wall Street is oil's bitch. Oil goes up, the market goes down and vice versa.

[idiom]

It was never expected to get as bad as this until 2010 anyways. No-one 'cept me and a few other doom cheerleaders are hanging onto our popcorn waiting for the collapse to be televised.

The Biggest issue is, OBVIOUSLY it was the dirty speculators all along

[smallpoxgirl]

$this->bbcode_second_pass_quote('Mominator', 'I') guess I was expecting a hardcore doom scenario with the market and I was expecting major economic depression & upheaval in the very near term.

[nero]

There are in my books two sorts of demand destruction. One is an increase in efficiency the other is a decrease in production. If this is demand destruction because people are forgoing consumption such as the annual road trip vacation then this is a bad thing for the economy as someone's job was dependant on that consumption; on the other hand if it is a decrease in demand because more people are car pooling and taking public transit then the optimism is warranted. However the massive scale of the drop in demand (5% YOY) makes me suspect it is primarily the former and not the latter.

I actually don't believe this demand destruction was caused by the price of oil so much as by the forclosure crisis. Just how bad the economy gets will determine how low the oil price goes. The drop in house prices is on the scale of the great depression. That isn't going to turn on a dime. Banks are waiting 180 days to start forclosure proceedings, therefore there must be a huge backlog of foreclosures. So far most foreclosures seem to be related to to the hangover from the bubble, but the next shoe to drop will be forclosures due to the loss of jobs. Banks won't clean up their books until the worst of that is over, then they will be able to start lending again.

[TreeFarmer]

an alternative scenario? A number of people out there believe in the Peak Oil concept and just got energy prices too far ahead of where they shoudl be given the current supply/demand relationship.

I would not be surprised to see oil in the 90 to 100 range again for awhile. Then when economic activity adjusts and picks back up it will then move to the 160 to 180 range.

TF

[Mominator]

$this->bbcode_second_pass_quote('smallpoxgirl', '
')I guess I would find that sort of thing a lot more reassuring actually. The fact that people are willing to bid American Airlines stock up 50% right now, says to me that people are no where close to accepting this as a permanent new paradigm or making the adaptations that are going to be necessary to deal with it. Everyone is just eating their seed corn and waiting for a return to $60 oil. My take on today is that the markets all breathed a collective sigh of relief and said in unison "I'm sure glad that's over.".