Why did the price of oil drop today?

[Winterblues]

Usually when a hurricane hits oil spikes, plus the fact that OPEC met and decided to cut production and yet oil drops. :crazy: I wonder if there is an election supposed to happen within a month or two. :shrug: Every excuse in the past was used to raise the price of oil and now when excuses are everywhere it drops...

[gatorboy]

1. The refineries weren't as badly damaged as once feared.

But gas hasn't dropped a single cent though! :mad:

[Kurt_and_Hunter]

2. commodity futures prices are also predictions of demand (future world economic strength)

[HCE SuiGeneris]

3. Cash is needed. Siphoning off to bolster the books?

[depakid]

4. Nations are in recessions

and Americans are dumping SUV's for more fuel efficient vehicles and/or rediscovering public transportation.

That and a relatively stronger US dollar.

[endarkenment]

5. US economy dropping means demand is going down.

However, as the price falls, either our economy or China's or India's may grow enough as a result of falling prices to pick up the slack and push the prices right back up. Population growth alone will eventually eat the slack and push the price back up.

[obamaforme]

6. not in my area - prices are up

[anigbrowl]

18. gas price =/= oil price. The OP is talking about futures markets, not retail.

[guitar man]

7. they're desperately trying to get repubs elected

gotta keep that corporate welfare going...:grr:

[liberalmuse]

8. Speculators are pulling out their funds from oil...

because they need to use them to try and bail themselves out of this godawful mess. So now we know that the high gas prices were artificial.

[Tandalayo_Scheisskopf]

9. Yup.

And when it all shakes out a bit more, a lot of people are gonna be amazed at how much of this price runup was due to out-of-control speculation and manipulation.

[bemildred]

10. Yup. the price is still bullshit, on a supply and demand basis.

All those guys with energy hedges need the cash for "other purposes" now.

[TransitJohn]

11. Because the markets tumbled

and everyone was selling their oil futures to generate cash to offset the losses they took in the Lehman bankruptcy.

[curious one]

12. Prices went up on speculation not on real value. Now price is coming down to ease the economy.

Repukes trick?

[ephg]

13. get McSame elected

If the monopoly oil companies drop the price, it looks good for the Republicans and McSame. It might help them get elected because the general population will be able to take its mind off of oil After the election, oil prices could agin rise. Only time will tell.

[Odin2005]

14. The speculative bubble is deflating. n/t

[louis c]

15. Strange, isn't it?

but I think as the global economy collapses, the futures markets retreat because China, India, and other emerging nations will consume less.

The fall over the last two weeks was as a result of a strengthening dollar (the price of oil is measured in US Dollars). The dollar strengthen because the economies of Europe and Asia weakened more than ours.

[DailyGrind51]

16. Because speculators know that people are too broke to consume

at past rates.

[dipsydoodle]

17. And because a lot of people

had already spent their futures too. Nothin' left to spend.