Why is Oil declining?

[Mike03]

Seems counterintuitive, with Nigerian strike and sabotage in Iraq. Do you expect this to continue?

[mhr]

1. Collectively, OPEC Has Slightly Increased Production

Secondly, demand has probably dropped slightly as people start to conserve due to high price.

[Egalitariat]

2. All the buying that juiced up the price

over the summer and early fall also swelled everybody's supplies, especially India and China who have been stockpiling oil.

Now there is more supply than demand, so the price is dropping until the market reaches a new equilibrium.

Also, Gulf of Mexico supply is slowly coming back online after being knocked around in the hurricanes.

[Sven77]

3. something to do with the dollar

something to do with the dollar, making oil cheaper to buy with the dollar. plus, oil should get cheaper with availability. and this administration is all about conquering countries for oil fields. lookout iran.

[maxsmom]

4. This pretty much sums it up!

http://www.powerswitch.org.uk/portal/images/stories/animoil.swf

[Mike03]

7. Frightening

Welcome to Mad Max, huh? Thanks for the link--check this out.

[leftyandproud]

5. supply & demand

market doing its magic

[orwell]

6. Sell

Inventories will be reported tomorrow. They are expected to be up across the board, even distillates.

That and the fact that oil has had a spectacular run invites profit taking and outright selling.

Prices never go in a straight line. But the long term trend however is still up.

[FloridaPat]

8. Didn't Bush open up the oil reserve right before the election?

[Robert Oak]

9. also tied to the dollar

I don't understand either, since "oil" currency is dollar currency
which is devaluing as we speak, so I would assume that would make
oil go up.

anybody got some good quick explanations on oil, money markets and the dollar?