Oil plummets on economy worries
By JOHN WILEN, AP Business Writer 2 hours, 55 minutes ago
NEW YORK - Oil prices fell sharply Monday, pulling back at least temporarily from record levels as investors feared that the financial crisis that forced the sale of Bear Stearns Cos. is a sign of deep economic troubles.
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Oil's steep decline — falling $4.17 to $106.04 a barrel on the New York Mercantile Exchange — came hours after futures rose to a new trading high of $111.80 on the Federal Reserve's surprise Sunday move to lower a key interest rate by a quarter point. In the past several months, Fed rate cuts have fueled rallies in oil prices.
When I see a headline that shouts "Oil Plummets!" I expect an actual, I don't know, decline! So, what this story actually says is that within hours of peaking at a record high it settles back to the same outrageous price it was the day before?
Gas is still 73 cents/gallon more than it was a year ago. Break the glass on the word "plummet" when we're back in that neighborhood.
5 comments:
I remember when gas was less than $1/gallon. My parents nearly had coronaries when it went over a dollar. What's my point? I don't know. I'm old?
It wasn't that long ago...1999 or so?
What's...happened...since...? Oh, yeah. ExxonMobiliburton became President.
Since when, exactly, did $4 become a "plummet?"
"Honey! Our savings account has plummeted $4!!"
"Oh, yeah. I bought some toothpaste and a birthday card."
Since when? I think you answered that question: ExxonMobiliburton became President
Don't worry, you only woulda saved about 50 cents on the fill up anyways.
"What's...happened...since...?"
A couple of other minor factors may have had some small influence on the price of gasoline:
-Low refinery capacity, relative to the demand.
-Oil price today-$112/bbl.
-Oil price 1970-$10/bbl.
-Oil price 1999-$20/bbl.
-OPEC has lowered production since 2005, despite an increased demand, especially from China.
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