Crude Oil Falls Below $100 a Barrel

[Playinghardball]

Source: New York Times

HOUSTON — Oil prices closed below $100 a barrel on Thursday during a session in which most commodity prices fell sharply, signaling that a recent run-up in commodities prices may finally be coming to an end.

After four months of surging higher, oil prices plummeted by almost 9 percent as traders worried that American drivers were beginning to balk at paying nearly $4 a gallon of gasoline.

Energy specialists had a variety of explanations for the drop, including Thursday’s weak employment data and a strengthening dollar that tends to make all dollar-denominated commodities cheaper in dollars and more expensive for holders of other currencies.

“Pop goes the bubble,” said Michael Lynch, president of Strategic Energy and Economic Research, a consulting firm. “It seems unlikely you will see any tightening in the market in the coming months. The worst of the political threats have passed us.”

More at: http://www.nytimes.com/2011/05/06/business/06oil.html

[elleng]

1. LET them worry, MORE!

'traders worried that American drivers were beginning to balk at paying nearly $4 a gallon of gasoline'

Lets show them that even without decent antitrust and other enforcement we, the MARKETPLACE, CAN have something to say.

[Shagbark Hickory]

3. I think it was more to do with the other corporations.. they didn't like the slump

brought on by high gas prices.
GM wants to go back to selling profitable guzzlers, airlines want to go about monopolizing how we get around, etc etc.

[whosinpower]

2. I think the death of Bin Laden played a role

Because the bubble popped the very next day - when the US greenback began to make gains.

The speculators decided now was as high as oil was going to go and dumped their holdings.

[LiberalEsto]

4. So why are gas prices continuing to rise?

Why, indeed?

[elleng]

5. Speculation. IF the downturn continues, MAYBE speculators will step back.

[elocs]

6. Not everywhere, mine fell. n/t