Oil sinks on stronger dollar, slips below $116

[951-Riverside]

Source: The Associated Press

Oil prices resumed their descent Friday, dropping briefly below $116 a barrel as a huge jump in the U.S. dollar and expectations of slowing global demand offset supply concerns over a sabotaged pipeline in Turkey.

With oil losing ground in the marketplace, the cost of roadside gasoline has been creeping down, too. The average retail price for a gallon of gasoline slipped to $3.836 Friday - down about a penny from Thursday, and down nearly 28 cents from the record high of $4.114 reached July 17.

"We're probably going to see gasoline at the retail level around $3.50 for Labor Day," said James Cordier, president of Tampa, Fla.-based trading firms Liberty Trading Group and OptionSellers.com.

Light, sweet crude for September delivery slumped $3.47 to $116.55 a barrel in afternoon trading on the New York Mercantile Exchange, after dipping as low as $115.61. Prices for gasoline, heating oil and natural gas also dropped.

Read more: http://news.yahoo.com/s/ap/20080808/ap_on_bi_ge/oil_prices

[skoalyman]

1. whoohoo we're oils down

the stock markets through the roof we're saved:woohoo: :woohoo: :woohoo: :woohoo: :woohoo: :woohoo: :woohoo: :woohoo: :woohoo: :woohoo: :woohoo: :woohoo: :woohoo: :woohoo: :woohoo: :woohoo: :woohoo: :woohoo: :woohoo: :woohoo: :woohoo: :woohoo: :woohoo: :woohoo: :woohoo: :woohoo: :woohoo: :woohoo: :applause: :applause: :applause: :applause: :applause: :applause: :applause: :applause: :applause: :applause: :applause: :applause: :applause: :applause: :applause: :rofl:

[Paranoid Pessimist]

16. If you follow enough of these elections, it's interesting that

the economy always perks up during the build-up to an election. Now I can't prove that the books are being cooked, that statistics are being faked, that the stock market won't tumble and oil prices won't hit the roof as soon as someone is elected and installed . . . but after paying attention to 12 presidential election cycles, suspicion tends to grow.

[Jim in MA]

21. Uh huh...

...and 'ironically' each one of these dips in oil prices boosted the market after it had been bashed the day before. Not too much volatility/manipulation now....

[dipsydoodle]

2. The increased strength of the US$

was due to an absense of interest rate increases in Europe and . apparently , a less cautious view from Europe regarding the US ecomony.

See here for example :

The dollar has rallied against the pound and euro amid belief that the US economy may be in better health than other countries.

Sterling slumped to 17 month lows of $1.9225, down 1.1%, while the euro hit five month lows of $1.5195.

The European Central Bank's decision to leave rates on hold was the main driver of the fall, traders said.

http://newsvote.bbc.co.uk/1/hi/business/7549259.stm

The latter view is partly is contradicted here : http://upload.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x3429833

[tama]

10. Funny,

given that US economy is allready deep in recession - or rather - depression (with rest of OECD soon to follow, of course).

[The Croquist]

15. The US economy is NOT in recession

let alone "deep in recession". Maybe you should either take Econ 101 or retake it.

The economy is lousy but that is not the same as what you are saying.

[tama]

18. You are funny.

US Potemkin economy is in shambles.

[Zynx]

27. Business cycles are not discussed in Econ 101. They are discussed in Econ 102.

[louis-t]

13. It still amazes me that what is pretty bad news

often makes stocks go up. Ford loses billions, and it's stock goes up because they didn't lose as much as projected. U.S. economy is in better shape than Europe, you say? Hey, party time!:eyes:

[Virginia Dare]

3. And we didn't even have to drill!...n/t

[Dave From Canada]

5. Yep, now imagine if you conserve AND drill, as well as solar, wind, etc.

[Virginia Dare]

6. That's an oil executive's worst nightmare!...n/t

[StClone]

4. Is there a graph that shows oil trends in election years?

[DemoTex]

8. Oil down .. market up, just in time for the GOP Convention.

Just like I said would happen. I think the downhill slope of any graph of oil prices on the run-up to the US elections this November has been pre-ordained by the Cheney Energy Task Force. Verb sap!

[CrazyDude]

14. Oil went up in the last bit of 2004 n/t

[liberal1973]

17. Remember gas prices

Remember gas prices dropped around the 2006 election.

[Eurobabe]

7. Will you see it at the pumps tho??

[krabigirl]

9. excellent news. Bad for the doom & gloomers though.

[tama]

12. Bad for all of us

Sooner the US totally collapses and global economy with it, better for the planet. Unless you think, that on matters of scale, American Way of Life (nonnegotiable, as it is) is more important than the health of planet and all of us living here - and that America Way of Living is somehow independent from the healts of our planet, most royally fucked by Muricans.

[demodonkey]

22. Look here, I would like to be able to afford at least a LITTLE heat this winter.

We heat with oil. I can't afford a new furnace to switch to anything else.

Last winter I kept the house at 58-60 degrees when I was home. That's damn cold, especially when you are feeling ill. I ran an electric space heater when I had to. When I went away I set it down to 46-48. Any lower and I was warned the pipes in some walls could freeze and burst. The house is very well insulated but it was miserable. The bills were still terrible and oil was like a buck cheaper then.

[24HRrnr]

26. I might be able to help

I'm an energy rater and can probably give you some (low cost) methods to help be more comfortable while not increasing your oil consumption. The advice itself is free. - and worth every penny of it, I might add.

Drop me a line....

[24HRrnr]

25. A personal request, then

Lead the way.

I expect that you won't be able to post from the hereafter.

You do realize that you are part of the the problem (as defined by yourslef)and utilize far more of the world's resources than a single living organism "should".

Of course, I really think you mean for "everybody else not you" to suffer those kinds of costs.

There's a word for that....

[cigsandcoffee]

28. Millions upon millions would die horribly.

...if the "US totally collapses and global economy with it." Are you out of your mind?

[rayofreason]

30. Lead from the front!

Since you posted on an internet site this means that you have access to a computer (high tech, rich) and electricity (resource exploitation). Therefore for the health of the planet you should commit seppuku. Don't worry - your leadership will inspire us and we will be right behind you...or not.

[defendandprotect]

11. I also think that the threat by Dems to move to open the RESERVES worries them . . .

it did the last time ---

[GliderGuider]

19. Why would that worry anybody?

The American SPR contains about 700 million barrels of oil. You import 13 million barrels every day. Therefore the SPR contains about a month and a half of US imports, or just over a month of total US consumption. Effectively nothing.

The SPR would work extremely well as an emergency reserve. As a part of ongoing energy policy, maybe not so well.

[defendandprotect]

23. As I said, it worried them the last time around and was a help

in breaking their stranglehold that time around ---

Releasing reserves of course takes pressure off the supply and therefore

has the effect of lowering prices ---

[ozone_man]

20. Dollar rises on weak commodities.

I'm the contrarian here. ;)

[ohio2007]

24. Oil Bubble Set to Pop: Crude to Fall 25 Percent in 6 Months, Says Invesco's Garnick

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=3369807&mesg_id=3369807

Still waiting for september


Oil Bubble Set to Pop: Crude to Fall 25 Percent in 6 Months, Says Invesco's Garnick

Posted Jun 26, 2008 01:03pm

http://finance.yahoo.com/tech-ticker/article/30380/Oil-Bubble-Set-to-Pop-Crude-to-Fall-25-Percent-in-6-Months-Says-Invesco%27s-Garnick?tickers=OIL,USO,DUG,GLD,XLE

[amandabeech]

29. If things continue to go downhill in Georgia, the price may pop up on Monday.

Georgia hosts a pipeline from the Caspian to the Black Sea, as well as the Baku-Tblisi-Ceyhan pipeline.

Those two pipelines are the only ones that can bring Caspian and Central Asian oil to the market without going through Russia.

Russia wants control of ALL that oil and gas so it can generally jerk Europe and others around.

IMHO, Russia was just waiting for Georgia to go after S. Ossetia or Abkhasia so it could have an excuse to destroy or grab those pipelines.