Oil Set for Biggest Monthly Drop in Three Years

[Purveyor]

By Mark Shenk - 2012-05-31T15:58:46Z

Oil headed for the biggest monthly drop in more than three years in New York on speculation that slowing U.S. economic growth and Europe’s debt crisis will reduce fuel demand.

Futures fell as much as much as 2.2 percent after more Americans applied for jobless benefits and the nation’s gross domestic product grew more slowly than estimated. Fitch Ratings downgraded eight Spanish regions’ credit, stoking concern the crisis will force lenders to bail out of Spain. A government report showed U.S. crude supplies rose to a 22-year high.

“The markets are clearly being driven by economic fear,” said Chip Hodge, who oversees a $9 billion natural-resource bond portfolio as senior managing director at Manulife Asset Management in Boston. “The data here show that economic growth is slowing and the situation in Europe continues to worsen. The economic headwinds are very strong.”

Crude oil for July delivery declined $1.70, or 1.9 percent, to $86.12 a barrel at 11:56 a.m. on the New York Mercantile Exchange. Prices touched $85.86, the lowest intraday price since Oct. 20. Oil traded at $86.63 a barrel before release of the inventory report at 11 a.m.

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http://www.bloomberg.com/news/2012-05-31/oil-set-for-biggest-monthly-drop-in-three-years.html

[tularetom]

1. Oh boy! We'll be looking at $1 per gallon soon!

(as if it's needed)

[no_hypocrisy]

2. Trump brayed that we'd be paying as much as $8 per gallon by the summer.

Bloviating ignoramus.

[Sen. Walter Sobchak]

3. The only oil supply crisis is storing all the inventory

I am working all day, every day with oil and gas people these days and they said there is no underlying market fundamental that puts oil above $40 a barrel. It is all speculation with a pinch of geopolitical risk from swaggering morons waving their dicks in Iran's general direction.

Inventory at Cushing is so high they are appealing to the community to lend them tupperware and inflatable swimming pools for short-term storage.

[louis-t]

5. Ha! 'tupperware'!

[nykym]

4. GOOD!

should all the speculators choke on their losses. It's got to be costing them a bundle to keep it in the tankers at sea.

[Andy823]

6. Yet gas prices are still high

Out west they shut down refineries in California to keep prices high, and failed to reopen one refinery in Washington state. I live In Washington and our prices have gone done only about 10 cents since they started going up. We pay $4.19 right now for regular and Diesel is up to $4.45. It's all a game for big oil, and it's all about finding different ways to keep on making record profits no matter who low the price of oil drops.