Oil Plunges Below $50 a Barrel
Crude oil plunged below $50 US a barrel for the first time since May 2005 after an Energy Department report showed that US oil and fuel supplies surged.
Oil sank more than 3% after the report showed that inventories had their biggest gain since October 2004.
Stockpiles of gasoline and distillate fuels, such as heating oil and diesel, also rose last week.
Saudi Arabia’s oil minister rejected calls from some OPEC members for a meeting to discuss production cuts, helping push prices down.
If we continue to see these big increases in petroleum supplies, we’ll soon test $45. The Saudi nonchalance about the fall in prices is a major factor pulling us lower.
The 36% decline in prices from a record high of $78.40 a barrel on July 14 hasn't dissuaded bullish investors. Oil would resume its march toward $100 a barrel after a "correction".
I’m just not smart enough to know how far down it will go and how long it will stay, but I do know that within the context of the bull market, oil will go over $100. It will go over $150. Whether that is in 2009 or 2013, I don’t have a clue, but I know it’s going to happen.
Warmer-than-normal weather in the US has sapped demand for heating fuels, contributing to a 17% plunge in oil prices so far this year. Demand will rise this week because of cooler weather.
Oil sank more than 3% after the report showed that inventories had their biggest gain since October 2004.
Stockpiles of gasoline and distillate fuels, such as heating oil and diesel, also rose last week.
Saudi Arabia’s oil minister rejected calls from some OPEC members for a meeting to discuss production cuts, helping push prices down.
If we continue to see these big increases in petroleum supplies, we’ll soon test $45. The Saudi nonchalance about the fall in prices is a major factor pulling us lower.
The 36% decline in prices from a record high of $78.40 a barrel on July 14 hasn't dissuaded bullish investors. Oil would resume its march toward $100 a barrel after a "correction".
I’m just not smart enough to know how far down it will go and how long it will stay, but I do know that within the context of the bull market, oil will go over $100. It will go over $150. Whether that is in 2009 or 2013, I don’t have a clue, but I know it’s going to happen.
Warmer-than-normal weather in the US has sapped demand for heating fuels, contributing to a 17% plunge in oil prices so far this year. Demand will rise this week because of cooler weather.
posted by Ottawa Gas Prices | 5:38 PM
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