Oil falls below $50.

[clippyrip]

Smart speculators make money both directions. That's how the market works.

Thanks, that big market thing a ma jiggy had me all confused.

 

[Captzaahlie]

The big markets sell things cheaper than the little markets...thats why i don't buy my milk and cereal at the convenience stores... Is that any help Clippy?

 

[time builder]

I've got an alternate theory. The way I see it, its not about current supply and demand.

Even if it did cause demand to drop off 15%, they'd still be making more money at $120 a barrel.

The point is, people were starting to get serious about alternate energy, and investing in electric and natural gas resources. By lowering gas prices, they're restoring confidence in gasoline consumers and taking from the investments in alternate energy.

So the next time gas prices go above $4 a gallon, we'll get "real serious" about alternate energy, and investors will look at previous investors and how we left them high and dry once gas prices dropped for a season.

 

[SpauldingSmails]

I don't think oil is going to go up because of supply and demand.

Rather, look for the value of the US dollar to head for the tank if we keep bailing everyone out. Hence, commodity inflation.

 

[clippyrip]

The big markets sell things cheaper than the little markets...thats why i don't buy my milk and cereal at the convenience stores... Is that any help Clippy?

Now thats funny.

 

[Poahi]

they're restoring confidence

Who is 'they'?

 

[Captzaahlie]

Who is 'they'?

The Indian dudes that own the convenience stores, of course.

 

[cybourg10]

No Wait, It's peak oil! It's peak oil.....

***Crickets***

Actually some say a sign of peak oil is extreme and irrational price fluxuations in short periods of time. The price goes up extremely high and demand drastically drops, then prices drastically drop to recapture the loss demand. The demand comes back up and the price skyrockets once again. This is not my personal opinion but I have read that this is what could happen, I would much rather see a consistent price rather than huge fluxuations. When the economy turns around hopefully we don't see another huge price surge. Don't know if we can rule out the Oil-Man President's last year and highest oil profits ever connection but that might be a stretch......I read that some predict oil heading down to 35-40 range, glad some decided to hedge at 120-140 this summer!