Oil plunges to $135 a barrel

[Pale Blue Dot]

Source: MSNBC

VIENNA, Austria - Oil prices are tumbling as traders dump the commodity amid concerns about the economy that are also driving the stock market sharply.

Prices dropped more than $10 a barrel from highs earlier in the day, and are now down more than $6 from Monday's closing price. Light, sweet crude is trading at $139.03, down $6.15.

Earlier, it rose as high as $146.73 and fell down to $135.9.

Read more: http://www.msnbc.msn.com/id/12400801/

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You'd think this would be good news, but it's probably not. It means that banks and others are so strapped for cash that they are selling the one item in their portfolio that can get them a big chuck of money quickly.

[BrklynLiberal]

1. plunges? That would be funny if it were not so sad.

[quiet.american]

23. That was my first thought, too. nt

[KansDem]

43. Mine, too. Only CorpMedia could come up with a title like this one...(nt)

[thewiseguy]

2. I wonder what banks are involved.

[radfringe]

11. all of them..

[ingac70]

3. Wonder if this is the beginning of the oil bubble burst? n/t

[Longtooth]

5. Some have been saying that it is coming.

Although when is up for lots more debate. Once the speculators realize that Iran is just saber rattling to keep the prices high that will drop the price a lot.

[jb24]

6. If oil "pops"

it won't stay low for long. Demand will increase again and we'll be back in the same hole.

[unpossibles]

9. except "demand" is not the reason for our high gas prices

or at least not the only reason.

[Xenotime]

35. This is actually bad for the environment in many ways..

Alt. energy research will stop.

[Gman]

4. It means they see the bottom falling out of the energy driven economy

and are dumping the very expensive oil they have now rather than get stuck with it. Gee, they may actually have to take delivery at the inflated price rather than dump it.

[BearSquirrel2]

18. This is the definition of a bubble ...

It has been driven to historic highs on speculation. Once speculators start popping their parachutes, it will keep diving until only the investors are are left.

[wtmusic]

7. I guess Bush isn't so bad after all

I completely forgot prices are twice as high as last year, and all is forgiven!

[liberal N proud]

8. What would they call it if the prices really did come down?

If it drops $30 will they call it a crash?

[dkofos]

10. Here's hoping it plunges to $35 a barrel. Where it belongs.

[jb24]

19. $35 a barrel

Will kill a LOT of private interest into alternative fuels. People will undoubtedly start wanting SUVs again. Plus, a lot of unconventional supply (shale, tar sands) will disappear as it simply want make economic sense to keep running at $35 a barrel. I doubt we'll ever see that price again.

[Javaman]

12. And yet it starts it's slow creep back up. 138.91 and the dow...

which had a momentary flight of fancy, is once again dropping. was down over 200, then up to -60, now down 100+.

moron* comes out barks into his food tray, the mouth breathers on wall street get stars in their eyes much along the lines of a 1949 Brit whimsically looking back at the empire that once was and believing that it's returning, was dashed again but that bitch of all bitches; reality.

US economy basically sound? that's rich. the dollar is dropping like a stone, inflation is now on full amp and the market has it's eyes set on sub 10K before the end of the year.

don't even get me started on oil prices, it won't make you happy.

[Richardo]

15. "barks into his food tray"

:rofl:

Excellent rant :applause:

[Stuckinthebush]

13. We'll never see a change at the pump

It could get down to $70 per barrel and we won't see a change. They have us conditioned to accept $4 gas and they will keep us paying $4 a gallon.

[RebelOne]

14. That's a guarantee.

[aquart]

17. That's just silly.

"Conditioned" is irrelevant. Our economy is collapsing because that fuel price is built into EVERYTHING, not just gas. We are paying the gas price over and over and over. Either we get energy under control or we change our lives totally.

[Stuckinthebush]

34. Well, I'd agree with that

but we are also conditioned to pay high gas prices.

[sakabatou]

16. It's still

hight as fuck.

[slackmaster]

20. I'll take October Surprises for $100, Alex

[joshcryer]

21. More proof that prices are speculatatory.

[RUMMYisFROSTED]

22. :lol:

Plunge.

Good one.

[quiet.american]

24. I'll call it a "plunge" when this proves to be more than just a retracement. nt

[ohio2007]

25. Somebody fears competition since all this talk of drilling off the US shore is gaining momentum

Top Democrat may back new offshore drilling: report



http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x3387458


Nothing like a good old fashioned hurricane to boost the price up but.......

global warming must actually be diminishing the severity that was thought to happen .

[liberal N proud]

26. PLUNGES - TUMBLES

Next it will be crashing through the $134 mark.

Just fucking WOW!

[WhiteTara]

27. Plunge? that was a drop in the bucket

from 30 to 140 in less than 4 years is huge! 5 dollars is nothing

[susanna]

28. Tin foil FIRMLY established...

...does no one else think that this latest ruse, which may last a while, is to ensure that the sheeple put the GOP back in office? Ah, hell, maybe I'm ahead of myself...or I'm delusional. BTW, both scenarios are possible but my radar went off so I have to point that out. :-)

[Imagevision]

29. Anyone recall how the gas prices dropped bigtime in the 06 elections?

Gas prices were dropping at a rate of 2-3 cents every other day weeks leading up to the 2006 elections, argued the elections had nothing to do with it and afterwards spiked backed even higher in prices within 90 days after the elections were over.

[RantinRavin]

30. Yeah I remember that

They did the same thing in 05, 04, 03, 02, 01...they do it every year around that time as the summer driving/vacation season winds down.

[Trajan]

31. It is my belief that ....

The price drops MORE during election years ....

Yours is the same excuse given by the Right Wing numbskulls who speak on behalf of the bastards in the Oil Industry who have ALWAYS taken more than a fair share from middle class families throughout the years ....

It is only anecdotal, but I could swear that the Right Wing Oil Industry executives who bankroll the GOP political machine try to lure mom and pop into believing big oil does NOT gouge the american public, because, well, "see ? Gas is getting SO much cheaper again ...."

Yeah .. They don't manipulate price for political gain ......

Right ....

:sarcasm:

[pampango]

32. From 2004 to 2007 the only big gas price declines in October and November were in 2005 -

not an election year. In 2004 prices rose from early October to early November by 8 cents and in 2006 they fell by 8 cents.

http://tonto.eia.doe.gov/oog/ftparea/wogirs/xls/pswrgvwall.xls

Oct 04, 2004 $1.902
Oct 11, 2004 $1.949
Oct 18, 2004 $1.984
Oct 25, 2004 $1.98
Nov 01, 2004 $1.986
Nov 08, 2004 $1.951
Nov 15, 2004 $1.918
Nov 22, 2004 $1.901
Nov 29, 2004 $1.903
Dec 06, 2004 $1.86
Dec 13, 2004 $1.799
Dec 20, 2004 $1.777
Dec 27, 2004 $1.754


Oct 03, 2005 $2.922
Oct 10, 2005 $2.828
Oct 17, 2005 $2.693
Oct 24, 2005 $2.564
Oct 31, 2005 $2.438
Nov 07, 2005 $2.336
Nov 14, 2005 $2.258
Nov 21, 2005 $2.168
Nov 28, 2005 $2.124
Dec 05, 2005 $2.127
Dec 12, 2005 $2.175
Dec 19, 2005 $2.205
Dec 26, 2005 $2.188


Oct 02, 2006 $2.263
Oct 09, 2006 $2.222
Oct 16, 2006 $2.195
Oct 23, 2006 $2.186
Oct 30, 2006 $2.204
Nov 06, 2006 $2.189
Nov 13, 2006 $2.216
Nov 20, 2006 $2.218
Nov 27, 2006 $2.221
Dec 04, 2006 $2.277
Dec 11, 2006 $2.267
Dec 18, 2006 $2.29
Dec 25, 2006 $2.303
Jan 01, 2007 $2.296
Jan 08, 2007 $2.258
Jan 15, 2007 $2.173
Jan 22, 2007 $2.107
Jan 29, 2007 $2.119

[Psephos]

41. The data suggest otherwise n/t

[TheFarseer]

33. It rose too quickly

It just wasn't real how fast it rose. I have said it was going to fall way down by winter. Don't look for it to go below $80 and that is on the optomistic side. The interesting question is if this will get the Dow going. It didn't manage to give us a positive close yesterday.

[NickB79]

36. Are attention spans really so short here?

A little over a month ago, oil "plunged" from $130/barrel to $120/barrel. Then, the price shot back up to $140/barrel!

A few weeks ago, oil "plunged" from $145/barrel to $135/barrel. Then, the price shot back up to a new record of $147/barrel last week!

Anyone seeing a pattern here?

That said, I fully expect oil prices to decline over the fall and winter like it always does, to approximately $100/barrel.

Don't forget that last winter it fell to $55/barrel before starting it's epic rise to almost $150/barrel.

We'll see $200/barrel next summer.

[Imagevision]

37. The prices dropped because of the drop in gas purchases, should be $80.00 by January...

[NickB79]

38. And if gas drops back to $3/gal, will people increase their consumption again?

This past winter, when gas dropped below $2.50/gal, truck and SUV sales actually INCREASED in the US. At the time, oil had dropped to $55/barrel. 6 months later, it was almost $150/barrel and gas was over $4/gal.

$80/barrel this coming January would fit in nicely with my prediction that oil will hit $200/barrel and $6+/gal by July 2009.

[depakid]

40. Most of those SUV's haven't gone anywhere

[Terry in Austin]

42. $80.00 by January!!!!!!!

Whoo, that's a good one!

Sadly, no. Not a penny below $100. Ever.

[Nickster]

39. I'd like to believe the bubble is starting to pop, BUT the CPI samples are taken around the 15th and

guess what??? The prices just happened to drop around the time the CPI sample is taken. Inflation can't go up if you're sampling lower data than last month now can you? I fear it's just another optical illusion.

[ileus]

44. "plunges" LOL....