Crude Oil Falls Below $120

[Purveyor]

(RTTNews) - Oil plunged on Monday and reached a four-month low. Light sweet crude for September delivery moved to $119.79, down $5.31 for the session. Prices fell as low as $119.50, their lowest level since early May.

Crude fell as Iranian President Mahmoud Ahmadinejad said his government is 'serious' about negotiating the nuclear program with the West. On Friday, prices soared after Israel Deputy Prime Minister Shaul Mofaz said Iran's nuclear program may be on the verge of a "major breakthrough."

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Trading took place amid reports Tropical Storm Edouard has not strengthed as expected. Investors also shook off an explosion at Valero refinery in Houston that reduced output at the facility.

Crude finished a volatile week up 1.5 percent from the previous Friday's close. Crude oil closed sharply lower on Thursday as traders cashed in profits from the Wednesday's inventory-based rally. Light sweet crude lost $2.69 on the session. Prices climbed as high as $127.89 in electronic trading, before retreating as low as $122.71 in mid-day moves.

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RTTNews: http://www.rttnews.com/Content/ForexTopStory.aspx?Node=B3&Id=673533

[Hugabear]

1. Quick - create a crisis!

With Exxon pulling in record profits over the past year or so, this simply cannot continue. Maybe Cheney needs to revive those plans to kill American servicemen and blame it on Iran. :sarcasm:

[happyslug]

5. Traditional August drop in price of oil.

People remember, oil traditionally has its highest price about June 1st and November 1st of each year, as the refiners switch from concentrating on Gasoline for the Summer driving season and then to Home Heating oil for winter. The switch starts in April and again in October of each year, but tends to be tight for the first few months of the switchover, then you have to much.

I do NOT foresee any STOP to this drop in price till October, then I see it stabilizing and going up starting in November, continuing up till January then another drop till March, then the system starts all over again. The real concern is NOT that the price hit almost $150 a barrel a few months ago, or even $120 today, but that overall price year to year is higher then it was a year ago. That trend has NOT stop.

[Hannah Bell]

9. It doesn't seem to be the case recently.

http://www.ioga.com/Special/crudeoil_Hist.htm

Crude's down about $27/bb, 18%. I don't see anything similar, or any regular pattern with June/Nov.

[Toucano]

2. Supply must have surged and demand tanked.

:sarcasm:

[Trillo]

3. I can't wait for Solar Hydrogen,

And other massively decentralized forms of clean energy.

I wonder if MIT's recent advance in solar hydrogen is behind this downward move. Nah, it's got to be about "them, over there" and how damn dangerous "they" are.

Getting off oil would sure seem to help us get off the oil-based warpath.

[aspergris]

4. hate to say i told you so - 130 was key level

(no i don't) :)

the 130 break was key, as posted weeks ago.

we got 10 handles from there.

Btw, corn limit down today THIRTY POINTS and off HUGE in the last couple of weeks.

[2hip]

6. I'm in the "I told you so" boat too!

Back in June I predicted a decline in oil and a likely "$110/barrel by November"

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x3408421

[aspergris]

7. sweet

My primary trade right now is short oil, long gold, and that's the main one i mentioned a few weeks ago.

[Subdivisions]

8. Iss dem thar gawd damned earl cumpnees munipilatin' duh 'lections! n/t