Oil price falls nearly 2 pct on China slowdown

[Omaha Steve]

Source: AP-Excite

By CHRIS KAHN

NEW YORK (AP) - The price of oil fell nearly 2 percent Thursday as the global economic slowdown took a toll on China.

China, the world's second-largest oil consumer behind the U.S., has been propping up oil demand as its economy expanded. But a drop in its export growth last month showed that it's been affected by the sluggish U.S. and European economies. Consumers are spending less and buying fewer Chinese products. If China's exports continue to cool off, its economy will slow and its appetite for oil will diminish.

"We're interconnected," independent analyst Andrew Lipow said. "A slowdown in consumption in the U.S. and Europe is being felt over there."

Benchmark crude fell $1.34 to end the day at $84.23 a barrel in New York. Brent crude, used to price many international kinds of oil, fell 25 cents to finish at $111.11 a barrel in London.

Read more: http://apnews.excite.com/article/20111013/D9QBK3580.html

[Divine Discontent]

1. shouldn't gas be under $3? I remember oil being over 120 a barrel when it was 3.85 a gallon for gas

I just wonder why we don't see 2.50-2.75 gas, well, other than obvious corruption/collusion.


Get it here now, or one of a million other designs! http://www.zazzle.com/republicans_2012_keeping_millions_out_of_work_bumper_sticker-128659602907896843?rf=238107662556833486eping_millions_out_of_work_bumper_sticker-128659602907896843?rf=238107662556833486

[Betty]

2. It never seems to go down much

No matter what, but given the slightest excuse, prices sky rocket and then just fucking stay there.

[Divine Discontent]

3. yeah, "tropical storm threatens oil platforms; gas prices go up 20 cents" and stay... n/t

Get it here now, or one of a million other designs! http://www.zazzle.com/republicans_2012_keeping_millions_out_of_work_bumper_sticker-128659602907896843?rf=238107662556833486eping_millions_out_of_work_bumper_sticker-128659602907896843?rf=238107662556833486

[On the Road]

9. I Assume It's Because These Massive Pools of Wealth

are looking for a return. They've abandoned real estate, are cool about stocks and bonds, and so they go into commodities. Sucks for everyone else. But at some point it is likely the worm will turn and oil will drop again.

[Yo_Mama]

4. No

Go to this link. On page 27 you will find a chart which shows you the import price of oil:
http://www.census.gov/foreign-trade/Press-Release/current_press_release/ft900.pdf

The last price given was $102.62 for August; peak import prices were in May/June at $108/$106. Because the import price of oil changes more slowly than the day-to-day pricing, price increases lag somewhat. Some of the pricing is done by contract!




Notice that gas pricing peaked before average oil import prices did; the fall in spot pricing has meant that some buying is being done at cheaper prices. Also demand for gas has been sluggish, which is pushing pricing down some. But until import pricing drops quite a bit, we will still have high gas prices.

[Divine Discontent]

7. Ok, thanks, and why are oil companies making the most money qtrly ever made by companies in history?

[hack89]

12. Because they sell a product in tremendous demand? nt

[RUMMYisFROSTED]

13. But demand has diminished or remained stagnant.

:think:

[hack89]

14. And OPEC has reduced production

not the oil companies but OPEC.

http://articles.economictimes.indiatimes.com/2011-10-12/news/30271159_1_bpd-opec-platts-global-director

[RUMMYisFROSTED]

15. 83M barrels a day(world consumption) cut by 150K.

A fraction of a percentile.

[hack89]

16. But OPEC does have have a policy of manipulating production

to keep prices as high as possible. Just pointing out that there are a lot of moving pieces in a global economy and there are other factors besides the "evil" oil companies.

[RUMMYisFROSTED]

17. The BIGGEST moving piece is speculation.

My point.

[hack89]

18. A unsubstantiated point nt

[RUMMYisFROSTED]

19. No one is speculating on the oil market?

"I said 'unsubstantiated' because I was too busy removing my head from my ass." -hack89

[hack89]

22. No - that it is the "largest moving piece".

please learn to read.

[ronnie624]

21. Oil speculation seen adding $600 to your gas bill

<http://money.cnn.com/2011/10/13/news/economy/gasoline_cost_speculation/>

Did Speculation Fuel Oil Price Swings?

<http://www.cbsnews.com/stories/2009/01/08/60minutes/main4707770.shtml>

GOP admits speculation is helping boost oil prices, moves to gut speculation watchdog anyway

<http://thinkprogress.org/romm/2011/03/19/207724/speculation-oil-prices-watchdog/>

[hack89]

23. So oil companies actually have nothing to do with sky high prices?

it is the financial markets?

[ronnie624]

24. So you chose not to read the articles.

Not surprising.

[hack89]

26. Your second link in particular puts the blame solely on fund managers

so yes, I did read the links. Did you?

[notadmblnd]

5. on Tuesday this week, gas was 3.19 a gallon. On Wednesday, it jumped to 3.59

I assumed it was the Iran assassination story. Today it was down to 3.49. I expect it will be another nickle cheaper tomorrow, maybe even 3.39?

[Divine Discontent]

6. the jumps are looney(.30) whereas the drops are always small (.10 or less)

A friend in OH said that his gas station raised prices 30 cents 3 different times within a week a few months back, but it'd only drop 5-10 cents every week. They're making more profit than ever (big oil) so clearly, they're screwing the consumer with no worries.

[4dsc]

20. EXPORTS of gasoline is why you are still paying a high price

The reason why gas is still high here is because oil companies are exporting gasoline to other countries, mainly South America to maintain high prices here.

[demosincebirth]

8. I've given up complaining about the price of crude and the way it is manipulated. I

don't have a clue.

[DJ13]

10. Benchmark crude fell $1.34 to end the day at $84.23 a barrel

Ir was only $78 a few days back.

I think its two steps forward, one step back as they try to quietly pump it back near $100.

[Fool Count]

11. Drop in export growth doesn't mean slowdown.

If China gets its domestic consumption going, as it plans to do, nobody is going to care about exports.

[In Other News]

25. "China slowdown"

:wtf: