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.
[...blah, blah, blah...]
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.
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?
ReplyDeleteIt wasn't that long ago...1999 or so?
ReplyDeleteWhat's...happened...since...? Oh, yeah. ExxonMobiliburton became President.
Since when, exactly, did $4 become a "plummet?"
ReplyDelete"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.
ReplyDelete"What's...happened...since...?"
ReplyDeleteA 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.