Oil down almost 50% from high
Oil Falls on Doubts Rescue Will Avoid Recession, Bolster Demand
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.
Futures touched $73.66, the lowest intraday price since Sept. 4, 2007, in electronic transactions after the close of Nymex floor trading, as U.S. stocks fell.
The retreat in stock prices over the past two days erased almost all of the gains in the S&P 500 and Dow on Oct. 13, when the market rallied the most since the 1930s on speculation government intervention will ease the credit crisis.
Exxon Mobil Corp., Chevron Corp. and ConocoPhillips, the three biggest U.S. oil companies, led energy companies to the biggest retreat among 10 S&P 500 industries today.
Efforts to calm financial markets probably won't result in an immediate economic rebound, Federal Reserve Chairman Ben S. Bernanke told the Economic Club of New York.
OPEC Forecast
OPEC, supplier of more than 40 percent of the world's oil, cut its forecast today for oil demand next year by 450,000 barrels a day, or 0.5 percent, to 87.21 million barrels a day. The 13-member group will hold an extraordinary meeting on Nov. 18 in Vienna, after a decision to trim supplies last month failed to stem a slump in prices.
Last week, the International Energy Agency, an adviser to 28 nations, lowered its projection for global oil demand next year by 0.5 percent to 87.2 million barrels a day.
A government report tomorrow may show that U.S. crude-oil and gasoline inventories rose last week, according to the median of responses by analysts in a Bloomberg News survey. The report will be released a day late because of the Columbus Day federal holiday Oct. 13 in the U.S.
Hovensa LLC, operator of the third-biggest refinery in the Americas, is closing processing units at its St. Croix, U.S. Virgin Islands, facility as Hurricane Omar is forecast to hit the islands today.
Brent crude oil for November settlement declined $3.73, or 5 percent, to settle at $70.80 a barrel on London's ICE Futures Europe exchange. It was the lowest settlement since Aug. 28, 2007.
http://www.bloomberg.com/apps/news?pid=20601081&sid=arxoACUOGdPE&refer=australia
Check out the videos by Lindsey Williams where he stated that the oil will go down to $50 in the near future when the new oil fields in northern Russia & Indonesia will start pumping oil. Seems like he has inside info on what the near future holds. Judging by the drastic decline in the price of crude oil, Williams was right. I think he also forecasted an economic downturn as well having an inside info about that as well. Check him out on youtube.
I don't understand why people put up with this shit
between "OPEC" and those fucking moneymasters, these fuckers r bleeding the world dry
___________________________
"Money" has no value - people do.
$50 oil will put a big hurt on Russia, but their gas revenue will bolster them.
$50 oil will probably topple Chavez, as his Orinoco crude costs over $40 to pump and clarify.
The first Gulf war was all about removing supply and driving the price of oil up.
You don't really believe Saddam lit those Kuwaiti oil fields do you? The big surprise of that war was how fast those oil field fires got extinguished. They were supposed to burn for ten years.
Indonesia's oil fields have shrunk to the point that they're are going to drop out of OPEC, since they're going to become and importer and not exporter of oil.
As for the price drop, this i think is connected more to those big ass Wall Street financial institutions going belly up.
A lot of speculators got their walking papers and right now, the remaining banks are lining up for some free public money. So the market isn't being played and manipulated as much as before.
Once that feeding frenzy settles down, watch the price of oil start going back up.
Or when the bombs start dropping on Iran. Oil that doubles or triples from $50 a barrel would be much easier to absorb than oil that doubled or tripled from $140 a barrel.
Kuwait and "Operation Desert Slaughter, Part I"
Here's an interesting bit of fact from August of 1990.
Seeing that the US was going to invade Iraq, even though the WH was denying it, I put together a resume of my firefighting experience and mailed it out to some oil well firefighting companies.
Back then, there were four major ones and three of those were in North America. One was named Boot and Coots.
Another was the famous company started by Red Adair.
Two of the three wrote back, saying they had already hired extra personnel in preparation for the coming war. This wa in August of 1990, five months before the invasion.
Yet, the WH was saying they were still working on negotiations.
Oil is from abiotic origin. There is plenty of oil, enough for thousands years, maybe even more. Biotic (so, official) theory was made to justify high prices of oil.
The increase of prices was initiated and controlled by jews. Just another swindle from them to take the goy's money.