Oil tumbles $5 as China raises fuel prices

[Lone_Star_Dem]

Source: CNN Money

Crude prices fall after China says it will raise gas and diesel prices prompting concerns about softening global demand.

NEW YORK (CNNMoney.com) -- Oil prices sank nearly $5 on Thursday after the Chinese government said it would raise prices on gasoline and diesel by lifting subsidies that have been blamed for driving oil prices higher. The move could curb demand from the country's rapidly growing economy.

Light, sweet crude for July delivery was down $4.81 at $131.87 a barrel on the New York Mercantile Exchange in midday trading.

China's National Development and Reform Commission said that prices of gasoline, diesel and aviation fuel will increase by 8% beginning Friday.

<snip>

Analysts were expecting China to follow the lead of other oil consuming countries that have lifted subsidies in recent weeks. "But no one expected it before this summer's Olympic games, which is why the market reacted so violently," Carbone said.

Read more: http://money.cnn.com/2008/06/19/markets/oil/index.htm?postversion=2008061914

[earthboundmisfit]

1. Wahhh, Mr. Carbone of Paramount Options. "Violently" to US is when it RAISES so effin' fast

Note this line, a bit further down:
"In the United States, gas prices fell for the third day in a row. The national average price for a gallon of regular gas fell two-tenths of a cent to $4.073 from $4.075 the day before, according AAA."

Falls two-tenths of a cent for $5 drop per barrel. But when it JUMPS $5 a barrel, does petrol rise just two-tenths of a cent? Fuck, no! A dime is more like it...

[Jefferson23]

2. Yea, I noticed that too..the bums!

[AndyTiedye]

3. No Price Drops Here in California. Over $4.50 for Regular Almost Everywhere

[Lone_Star_Dem]

4. Funny thing is the market prices are for next months future oil sales

Then after the oil is sold it still has to be refined before it becomes gas. So consumers should not be paying for these increases until the gas made from the more expensive oil is delivered to the station. In theory anyway.

[Javaman]

5. I find this odd. Considering that china has been experiencing diesel and oil

shortages for a while now.

[Robbien]

11. China has been having shortages because refineries slowed down processing

Refineries have been losing money because they could not buy oil and refine it for sale profitably at the subsidized rates. So they just cut production waiting until after the Olympics hoping that then the government would increase the cap.

[NMDemDist2]

6. tumbles?? TUMBLES?? a $5 drop is hardly a "tumble"

a hiccup maybe or a stutter

but not a 'tumble'

:banghead:


$40-$50 is a tumble.......

[Bush_MUST_Go]

7. It is a tumble for people who invest big bucks expecting prices to go UP!

[xioaping]

8. I don't care about them I care about

average people and $5 a barrel maybe good news but not a tumble.

[Carnea]

9. Chin's market is at a two year low apparently some unnamed country

isn't buying as much of their crap as it used to and the wheels are starting to come off the Peking express.

[Blaq Dem]

10. There's not enough natural resources to support a capitalist China

They simply have too many people. India too. The planet can't sustain them with a capitalist lifestyle. It's bad for the environment. It's going to get worse. As billions of people are lured into materialism, most will be left out. This means there's going to be a lot of angry people in the world who can't buy Mc Donalds and Coke. It's going to get ugly. We will suffer along with them as the price of gas and other natural resources soar.

[Vinca]

12. This has nothing to do with oil and everything to do with cheap shit.

If we're putting all our money in our gas tanks, we can't purchase poisonous trinkets imported from China.