Oil Price thread

[david16]

Down to $93

Oil price dives to $93 after passage of US bailout bill- Indicators-Economy-News-The Economic Times

[ashy]

$91.51 now. Just look at the chart, seems we'll be calling it the "summer of discontent" in the future.

Commodities | Investing | Digital Look

[LMagic007]

I suspect the oil price will eventually climb, once the credit crisis has worked through the global economies.

[addict]

That could be a couple of years away yet.

[LMagic007]

Yea it might be a while, however with the US pumping back 700 billion into their financial system, that could have effects on energy demand as cash / credit is freed up for other economic activity.

The bailout could also possibly devalue other currencies ( assuming 90% of global foreign currency reserves are held in US dollars ) if the treasury just prints money, thus potentially making oil more expensive for other oil importing nations. The US currency is in such a position, that it seems the US can export inflation if it so chooses through its monetary policy and other fiscal measures.

[kepler]

Oil prices have fallen to an eight-month low of less than $90 a barrel.

Analysts say the decline reflects concern that the financial crisis in the US and Europe will lead to a global slowdown and a drop in demand for oil.

BBC NEWS | World | Middle East | Oil price dips below $90 a barrel

[LMagic007]

There is talk around of oil going to $50 a barrel in the global economic down turn, but I'm not sure if OPEC will allow that.

Peak oil, bailout bunk, and the coming recession | Energy Bulletin

[bruce]

Down below $80 a barrel now.

Oil prices fall to less than $80 per barrel

The price of oil tumbled more than 10 percent Friday to its lowest level in more than a year, as traders feared that the global economic crisis will kill demand for crude.

[mikep]

Could go a lot lower if the recession gets worse, as people can't afford to consume as much. But when (if?) things pick up again, the price could easily shoot up higher than it's ever been.

[LMagic007]

If OPEC have any say in the matter, I doubt it will go too low. They have been talking about cutting oil production.