Article

2008-10-16 Home Front Economy

Oil falls to 13-month low on recession worry

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Posted by Steve White 2008-10-16 00:00|| || Front Page|| [4 views ] Top

#1 Under 70$ now. Just five days after going under 80$.

Posted by JFM">JFM 2008-10-16 12:33|| 2008-10-16 12:33|| Front Page Top

#2 Wow, the demand must have fallen by half or the supply has doubled -- NOT!

Posted by Anguper Hupomosing9418 2008-10-16 12:56|| 2008-10-16 12:56|| Front Page Top

#3 Latest Nov 2008 NYMEX Light crude quote: 69.75 -4.79

Posted by ed 2008-10-16 13:01|| 2008-10-16 13:01|| Front Page Top

#4 4 reasons

1.Stronger dollar
2.Decreased economic activity
3.Behavior modification as people cut inefficient fuel use.
4.Last but not least, the speculative bubble has poppped.

I am actually surprised at #1, given the insane levels of liquidity injected into the .

Posted by Minister of funny walks 2008-10-16 16:06|| 2008-10-16 16:06|| Front Page Top

#5 markets.

PIMF

Posted by Minister of funny walks 2008-10-16 16:06|| 2008-10-16 16:06|| Front Page Top

#6 Minister, the speculative bubble popped because the hedge funds can't get the money they need. Banks aren't lending, investment banks are either bankrupt or morphed into commercial banks, and investors are buying treasuries at insanely low yields. No money = no speculation = price comes down.

Posted by Steve White 2008-10-16 18:33|| 2008-10-16 18:33|| Front Page Top

#7 So, Dr. White, where did the speculators stow all this oil they were hoarding?

Posted by Nimble Spemble 2008-10-16 18:49|| 2008-10-16 18:49|| Front Page Top

#8 Steve White

Oh I UNDERSTAND THAT. It's the dollar's rise in the midst of a massive currency supply expansion, and therefore dilution. Yet the dollar rises.

Posted by Minister of funny walks 2008-10-16 20:20|| 2008-10-16 20:20|| Front Page Top

#9 where did the speculators stow all this oil they were hoarding?

Cushing Oklahoma for example.

Posted by ed 2008-10-16 22:12|| 2008-10-16 22:12|| Front Page Top

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