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Oil drops to $60 a barrel
Published Tuesday, November 11, 2008
Oil prices fell to near an 18-month low of $60 a barrel Tuesday as hopes waned that a huge Chinese spending plan will do much to avert a prolonged slowdown in the global economy.
Light, sweet crude for December delivery was down $2.27 to $60.14 a barrel in electronic trading on the New York Mercantile Exchange by midday in Europe. The contract overnight rose $1.37 to settle at $62.41.
In London, December Brent crude fell $2.13 to $56.95 a barrel on the ICE Futures exchange.
Oil closed at $60.77 on Nov. 6, the lowest closing price since March 2007, and has fallen about 59 percent since reaching a record $147.27 in mid-July.
Analyst Olivier Jakob of Petromatrix in Switzerland noted the high volatility accompanying falling prices.
While the Nymex contract is now trading near first-half 2007 prices, the difference then between daily highs and lows was around $1.50 a barrel, while now the average daily range is around $5.50 a barrel with recent daily peaks at $9.50, Jakob said.
Oil prices and stock markets jumped Monday after China said it planned to spend $586 billion in a bid to spur economic growth. But pessimism soon returned as investors focused again on a swooning U.S. economy, which faces its worst recession in decades.
Most Asian and European stock markets fell Tuesday, following the lead of the Dow Jones industrials average, which dropped 0.8 percent Monday. Japan’s benchmark Nikkei 225 index slid 3 percent Tuesday, Hong Kong’s Hang Seng index dropped 2.9 percent, while London’s FTSE and Germany’s DAX indexes were both down around 2 percent.
‘‘The market is realizing that package can’t prevent us from sliding into the mess we’re heading toward,’’ said Toby Hassall, an analyst with Commodity Warrants Australia in Sydney. ‘‘The economic outlook is pretty bleak.’’
Investors are grappling with how bad the recession in the U.S. could be, as government statistics and company results reflect an abrupt slowdown in consumer demand, bank lending and investment during the second half of the year.
Crude demand from the U.S., the world’s largest consumer of energy, is a key driver of oil prices.
‘‘We saw extremely poor car sales and pretty shocking unemployment numbers from the U.S. last week,’’ Hassall said. ‘‘It wouldn’t surprise me if oil edged down toward $50.’’
U.S. car sales fell to a 25-year low in October while the unemployment rate shot to a 14-year high of 6.5 percent last month.
Militants in Nigeria on Monday resumed attacks on the country’s oil installations. The military said it killed eight people while guarding a facility in the oil-rich south of the country.
The Movement for the Emancipation of the Niger Delta, the region’s main militant umbrella group, said it wasn’t involved in any fighting. The military didn’t say which militant faction the dead fighters represented.
Militants frequently attack oil facilities, seeking to hobble Africa’s biggest petroleum industry and force Nigeria’s federal government to send more oil funds to the southern states where the crude is pumped.
‘‘The focus of the market has really been on the demand side,’’ Hassall said. ‘‘I’d be surprised if supply side issues in Nigeria could change the mood of the market.’’
In other Nymex trading, heating oil futures fell 3.80 cents to $1.97 a gallon, while gasoline prices dropped 3.80 cents to $1.33 a gallon. Natural gas for December delivery slid 3.9 cents to $7.21 per 1,000 cubic feet.
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Comments
Posted by osu (anonymous) on November 11, 2008 at 1:26 p.m. (Suggest removal)
So, when does the price of gasoline drop? Oh, yeah. I forgot. We have Marathon-Ashland's monopoly in our backyard.
Two weeks ago, gasoline in the Columbus area was $1.99, while it was still 2.40 here.
Posted by tmarie (anonymous) on November 11, 2008 at 2:31 p.m. (Suggest removal)
gas in south point is 2.25 and out is jackson it is 1.95 and in coalgrove it is 2.15 so if it can tbe a 1.95 in jackson why not right here is it because of marathan
Posted by Kieth (anonymous) on November 11, 2008 at 2:59 p.m. (Suggest removal)
Enjoy while you can, when Obama adds the carbon tax it will be between $5.00 & $7.00 per gallon, you should be careful what you vote for, you might just get it.
Posted by osu (anonymous) on November 11, 2008 at 3:53 p.m. (Suggest removal)
More scare tactics, huh Kieth? I guess the majority of the people who voted want $7/gallon gasoline.
Posted by itsallgood (anonymous) on November 11, 2008 at 3:56 p.m. (Suggest removal)
Gas tax in Kentucky is cheaper than in Ohio so why were the Clark stations $2.18 a gallon on Sunday in Ohio and Kentucky.
If the price of gas without tax is the same then it should be at least 10 cents cheaper in Kentucky.
Posted by MasterChef (anonymous) on November 11, 2008 at 4:07 p.m. (Suggest removal)
When does gas drop in price? Right before elections and just before another major price increase. They've already messed with our minds to get us to think even $1.95 is cheap.
Posted by Slick77 (anonymous) on November 11, 2008 at 5:16 p.m. (Suggest removal)
So all you Bush "haters", I can't wait until I hear who you will be blaming after the next 4 years!
p.s. And I'll be saying...."I told you"!!.... Hold on cause It's going to get even "uglier".
Posted by Slick77 (anonymous) on November 11, 2008 at 5:26 p.m. (Suggest removal)
Kieth...I agree, no scare tactics osu, just reality!
Posted by Noesis (anonymous) on November 11, 2008 at 6:27 p.m. (Suggest removal)
MasterChef... I don't remember gas prices dropping during the 2004 election. Keep on drinking that kool-aid... And speaking of kool-aid... I thought MichaelOH said that prices would go up right after the election.
Posted by Slick77 (anonymous) on November 11, 2008 at 6:55 p.m. (Suggest removal)
Posted by osu (anonymous) on November 11, 2008 at 3:53 p.m. (Suggest removal)
More scare tactics, huh Kieth? I guess the majority of the people who voted want $7/gallon gasoline.
osu, the majority of the people who voted were "clueless" and naive'....they along with yourself are in for a rude awakening.
Posted by MasterChef (anonymous) on November 11, 2008 at 7:25 p.m. (Suggest removal)
Noesis, you're back! Finally! So, how'd ya like those vote tallies, big boy?
I figured you and davie-poo wouldn't show at all. I've still got your dish of "crow" reserved.
Posted by lsocorek (anonymous) on November 11, 2008 at 8:21 p.m. (Suggest removal)
Yeah, isn't it funny, how when anything is bad, it is always Bush's fault?? However, when something good happens, nobody ever gives Bush credit. I am so glad that the gas prices dropped now so that people can't say that this was Obama's doings. Keith and Slick77 hit the nail on the head. We haven't seen anything yet when you think of the mess to come with the new President coming up.
Posted by Neo (anonymous) on November 12, 2008 at 7:29 a.m. (Suggest removal)
drill baby drill
Posted by Neo (anonymous) on November 12, 2008 at 7:36 a.m. (Suggest removal)
By the way, you McCainiacs lost your "I'll be here to say I told you so" privileges. If you went AWOL on November 4, we don't listen to your bull anymore.
Please note, in my opinion, the vast majority of those who voted for Senator McCain are not in this group I refer to as "McCainiacs." I am only talking about the ones who tried to propagandize the election and, apparently, are now looking to get back in business.
I came on here hand posted conciliatory remarks after the election. For some nimrod to accuse those who voted for Obama of being naive, well, it just shows that they have no class (and no sense).
Posted by Neo (anonymous) on November 12, 2008 at 8:34 a.m. (Suggest removal)
Isocorek, most of what you said was pretty fair. Whether it be Bush now or Obama later, here's what we're looking for...cause and effect. What was done that caused any particular phenomenon in this country.
What caused the price of gas to go down? It is the global recession. Supply and demand. Supply didn't go up. Demand went down. If some on here want to give Bush credit for that, so be it. However, I believe that most fair-minded individuals realize that it's the terrible economy and not any Bush policy that has resulted in the decrease in the price of gasoline.
Again, you seem on first glance to be fair minded. I'm not trying to "recruit" you for a battle of the nonsense (some people on here start every other post referring to the 4 or 5 people they think are on the "other side", even if they haven't posted on the article). I'm just responding to your comments and I hope you consider this with a fair and open mind.
Have a great day - Neo
Posted by osu (anonymous) on November 12, 2008 at 11:12 a.m. (Suggest removal)
Hey noeisis!
Where've you been? Sulking?
How's that crow??
Shooter tells me that Crow is best served with beans.
So, eat a bean.
Posted by MasterChef (anonymous) on November 12, 2008 at 12:09 p.m. (Suggest removal)
Yeah, I miss his babbling about McBush and how he's going to kick some Barak butt. He really laid it on thick and he was 1001% WRONG. Obama won in a landslide, taking many battleground states from the republicans, including OHIO!
Pardon me for gloating a little, bot noie deserves it. I'll be back to normal soon, right after I stop laughing at noie.
Posted by Slick77 (anonymous) on November 12, 2008 at 7:33 p.m. (Suggest removal)
MasterChef.....only by 2% in Ohio! That isn't a landslide here. Obama lost to Kentucky and WV, our neighbors. Oh, don't worry about Noe's crow, I already ate it for him. Had my portion too. lol, but I still stand by my vote!
Neo, Noesis was on vacation for 2 1/2 weeks, remember, he wished you all well and let you know before hand. Give him a break
p.s. I wasn't calling you clueless and naive', just most of the people who voted for Obama.
So you think I am a nimrod, no sense or class huh??? lol, well I've been called worse. :) :)
Posted by Neo (anonymous) on November 12, 2008 at 11:07 p.m. (Suggest removal)
I'll take your word on that "slick."
Noesis wasn't the only no show and you know that. I kept my word. I didn't come over here on election night and rub salt in your eyes. I came over here and congratulated the probably 95+% of the McCain supporters who behaved in a civil manner on a good campaign. If Obama had lost I would have congratulated them on a victory. I kept my word. Those who swore McCain would win and insulted Obama daily by calling him messiah, Obambi and any number of other slurs didn't have the guts to back up their big mouths by showing up on election night.
You see, I recognized the majority of those supporting McCain as decent people. You, on the other hand, insult the majority of those supporting Obama as naive. You were wrong in saying that he would lose the election and you're wrong in what you said about his supporters. Quite simply, Obama was the better candidate...period. Don't take my word for it. There's an easy way to tell. He won.
Posted by MasterChef (anonymous) on November 13, 2008 at 6:16 p.m. (Suggest removal)
And slick, in Ohio when a dem wins the presidential election by 2%, that IS a landslide. And Obama is the President-elect of the United States of America, not the United States of Ohio.
Noesis found time during his supposed "Hawaian Vacation" to check in. IF he was really on vacation at all. He was just too embarrassed over his big mouth and his little mind being wrong.
Posted by lsocorek (anonymous) on November 15, 2008 at 9:28 p.m. (Suggest removal)
Neo~
I am very confused as to why you sound so mild in this post directed at me, when I have posted in other articles and you have been so unreasonable. Not sure what your intentions are. You say you aren't trying to "recruit me for battle" when everytime I post my opinion or post facts in any article on here, you come back at me like you are the only one entitled to your thoughts. Myself and others have just as much right to post what we feel like as you and Masterchef and a couple others on here. By the way, yes, I am a very fair minded individual. I am just deeply saddened for this country in so many aspects. We are so far from the principles in which our country was founded on. And now Christian conservatives are the ones who are being forced into silence. I will just keep speaking up for what is just and good. I will have to stand account for it, just as everyone else.
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