Oil prices drop due to fears that we will begin using less.
*Insert Curtis Mayfield’s “I’m Your Pusher” here*
Here’s part of the Bloomberg story:
By Mark Shenk
Oct. 15 (Bloomberg) — Crude oil fell below $75 a barrel for the first time in more than a year on skepticism that a rescue of the world’s banks will be enough to avoid a recession and stem a decline in global fuel demand.
Oil, which has followed movements in equity markets this month, fell as the Standard & Poor’s 500 Index and Dow Jones Industrial Average tumbled today. The Organization of Petroleum Exporting Countries cut its 2009 demand forecast because of “dramatically worsening” conditions in financial markets.
“The oil market is under a lot of pressure and nothing is going to change that anytime soon,” said Ric Navy, a broker at BNP Paribas SA in New York. “We are entering a poor-demand cycle, which will put further downward pressure on prices.”
Crude oil for November delivery fell $4.09, or 5.2 percent, to $74.54 a barrel at 2:54 p.m. on the New York Mercantile Exchange, the lowest settlement since Aug. 31, 2007. Prices, down 13 percent from a year ago, have dropped 49 percent from the record $147.27 a barrel reached on July 11.
How much would oil prices decline if we just stopped using it all together?
16. October 2008 at 7:37 pm
This is why I never listen to the experts I remember them saying “It will never fall below 100.00 a barrel”. Ha I need to be an expert or a weather forecaster you can be wrong 50% of the time and you still have a job
18. October 2008 at 3:25 am
+1 way up for coffedrink!
21. October 2008 at 5:05 pm
let’s drink to that!