Crude Continues Downward Correction

[beetbox]

Crude continues downward correction
By Chris Flood
Published: September 7 2005 12:21 | Last updated: September 7 2005 12:21

Oil prices continued their downward correction on Wednesday with technical analysts saying that the decline could continue as the market had shown a reluctance to maintain higher levels in spite of the disruption to production caused by Hurricane Katrina.

IPE Brent for October delivery declined 49 cents to $64.40 a barrel while US crude prices eased 13 cents to $65.96 after falling by $1.61 on Tuesday.

Around 58 per cent of US oil production in the Gulf of Mexico remained closed compared with around three-quarters on Sunday.

US gasoline futures were up 1.3 cents at $2.068 a gallon while US heating oil futures dipped 0.9 cents to $2.0450 a gallon.

http://news.ft.com/cms/s/459aeda6-1f8b-11da-853a-00000e2511c8.html

[wakeme2008]

1. So I can run out and see a drop in price at the local gas stations right

:sarcasm:

[Throckmorton]

2. Actually, here in Connecticut prices are down from last week

Gas peaked in my area of Connecticut at $3.29/gal last thursday, but prices have fallen about 20 cents a gallon over the last 2 days.

[Maeve]

3. Am I the only one who remembers $50 being called a "bubble"?

Now we are once again being told it will fall back, never fear--keep buying those Hummers....

[liberaliraqvet26]

4. and gasoline is staying the same....

how shocking. it happened over the summer too. does it ever go down.

[magellan]

5. Katrina provided a view of the not too distant future

For several months the overall trend has been up, correction, up, correction, with each peak higher than the last. Katrina just showed us where we'll be sometime next year. Prices may fall below pre-Katrina due to the current oil glut from the strategic reserve release, but they'll be back on their meandering upward climb soon.

I'm no expert at this, just basing it on what I've seen so far.

[LostinVA]

6. Price has been $3.29 here since Monday... criminal

[bemildred]

7. Here:

In case you are wondering, we went clean off this chart last week,
and we are 9 months off the right side.

[Bassic]

8. Gee I wonder why pump prices aren't lowering.

:sarcasm:

[Bassic]

9. Gee I wonder why pump prices aren't lowering.

:sarcasm:

[durablend]

10. Apparently they HAVE gone down locally

From $3.19 to $2.99

Guess they had some wiggle room so now they can say "See, it's below $3.00...we're giving you a BARGAIN!"

:sarcasm:

[Bassic]

11. That's good then

Still haven't gone down (as of this morning anyway) up here in Québec.

This is ridiculous, they went up after Katrina because of "possible shortages". It is ridiculous because we dont buy our oil from the U.S. at all. So here we wait.

[Buns_of_Fire]

15. In my little hamlet in southwest Virginia, they have

From 3.29 last weekend, to 2.99 yesterday, to 2.97 this morning, to 2.77 this afternoon. I think some enterprising locals have figured out how to cut it 50/50 with moonshine.

[yppahemnkm]

12. Still over $3.00 here

Has not went down.

[Javaman]

13. Can someone explain to me something about the price of gas?

How come when oil goes up, the price at the pump goes up, but when oil goes down the price at the pump either stays the same or takes 2 weeks for it to go down a bit????

[MasonJar]

14. Could be because the Congress is going to investigate..after all

elections are only a year away and I imagine that the constituents are raging.

[truthbetold]

16. It's insanely high here.

Try $3.49 a gallon.

[RUMMYisFROSTED]

17. I wonder how much consumption dropped off?

I have an uneasy sense that this was a test to see what the market could bear.