Oil falls below $95 on falling global demand

[mac56]

Source: AP via Yahoo

NEW YORK - Oil prices tumbled below $95 a barrel Thursday, falling for a second day as investors bet that a revised $700 billion financial bailout plan won't be enough to avoid a recession and revive dwindling U.S. energy demand.

The declines came a day after the Senate overwhelmingly approved the bitterly contested rescue package. The bill now goes to the House of Representatives for an expected vote Friday; House lawmakers stunned investors Monday by rejecting the bailout plan, although Senators added $100 billion in tax breaks and other sweeteners in a bid to win over enough dissenting House votes.

Even if the plan wins approval, oil market traders are skeptical that it will steady the teetering U.S. economy and reverse flagging demand for energy in the world's largest consumer. The plan would remove billions of dollars in bad mortgages and other toxic debt from the books of banks and other financial firms, though critics argue it doesn't go far enough to help ordinary Americans struggling with soaring costs for food and fuel and falling home prices.

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

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Sooo...how long till prices at the pump also tumble?

[enki23]

1. gasoline demand isn't *that* elastic. it's the refineries.

and, possibly, the politics.

[merwin]

2. You're close. It's the speculation, pure and simple.

[enki23]

3. right. that too.

.

[Tandalayo_Scheisskopf]

4. Gas right now...

is 2.26/gal. Heating Oil/Diesel is the one I cannot figure out. It's 2.74 and has been staying up, although it is easier to refine and this is the HO refining season. Something tells me that someone needs to look into what the hell is going on with those guys.

[Hydra]

5. Gas being exported at record rates

http://www.cnbc.com/id/25518912

They'll just export until the demand keeps it at $3.50-$4.00 a gallon here.

This is why Monopolies are supposed to be illegal.

[defendandprotect]

8. And, yes ...what about breaking up these monopolies...???

[defendandprotect]

9. ...actually, let's nationalize oil industry ---!!

[Hydra]

13. I'm for it!

It's "A matter of national security" don'cha know.

[defendandprotect]

15. Never thought of it that way ... you're right --!!

It's "A matter of national security" don'cha know.

[defendandprotect]

10. dupe

[mac56]

12. God help me. I realize I'm ignorant, but why are we exporting

even one drop of oil?

[Hydra]

14. Because Exxon and the others DON'T WORK FOR US!

Something RWer's have problems grasping.

If it were more profitable to rape children, that's what they would be doing.

[Warpy]

6. Oil falls to $95 because there is the beginning of a run

on hedge funds and they need to come up with cash fast. That's also the reason the Dow is dropping after the "good" news that the Senate passed a bailout plan.

[defendandprotect]

7. Agree on "speculation" ....a little fear and uncertainty hitting the players...?

...who were mainly oil companies ... right???

[HopeHoops]

11. YAY! So, like the gas should be back down to $2.50 or so, but wait - aw crap.

[Zhade]

16. Um, this is bullshit. Demand isn't falling.

NT!