Oil 77.70 a barrel and droping
Oct 11, 2008 | 12:25 AM
#1
Oil 77.70 a barrel and droping
oil is down by half soon so will the price, just hang on.
Oil plunges to 13-month low on global slowdown
By STEVENSON JACOBS
, AP
posted: 8 HOURS 24 MINUTES AGO
NEW YORK -The stunning collapse in oil markets accelerated Friday, sending a barrel of crude plunging below $78 as investors grow more pessimistic about resolving a mushrooming global economic crisis.
Oil hasn't been this cheap in 13 months — a rare silver lining for consumers amid a rapidly imploding financial landscape.
Crude prices have almost been cut in half since surging to a record near $150 barrel over the summer.
Energy experts believe prices could go even lower.
Friday's steep losses came as Wall Street capped its worst weekly drop ever with another wild session. The Dow Jones industrial average fell as much as 700 points earlier in the day before gyrating in and out of positive territory and later finishing the day down 128 points.
The frenzied trading weighed heavily on oil markets, sending prices plummeting more than $9 a barrel at one point.
"There's so much fear out there and that's really gripping the oil market. People are just afraid to hold a position so they're closing out and selling off," said Michael Lynch, president of Strategic Energy & Economic Research in Winchester, Massachusetts.
Light, sweet crude for November delivery ended the day $8.89 lower at $77.70 a barrel on the New York Mercantile Exchange. It was the lowest settlement price for a front-month crude contract since Sept. 10, 2007.
Underscoring Americans' waning appetite for fuel, a gallon of regular gasoline dropped 5.3 cents overnight to a new national average of $3.35 a gallon, according to auto club AAA, the Oil Price Information Service and Wright Express.
Prices dipped below $3 a gallon on average in Kansas, Missouri and Oklahoma. If crude keeps falling, the rest of country should see sub-$3 gasoline in the next few weeks if not sooner, experts say.
Oil plunges to 13-month low on global slowdown
By STEVENSON JACOBS
, AP
posted: 8 HOURS 24 MINUTES AGO
NEW YORK -The stunning collapse in oil markets accelerated Friday, sending a barrel of crude plunging below $78 as investors grow more pessimistic about resolving a mushrooming global economic crisis.
Oil hasn't been this cheap in 13 months — a rare silver lining for consumers amid a rapidly imploding financial landscape.
Crude prices have almost been cut in half since surging to a record near $150 barrel over the summer.
Energy experts believe prices could go even lower.
Friday's steep losses came as Wall Street capped its worst weekly drop ever with another wild session. The Dow Jones industrial average fell as much as 700 points earlier in the day before gyrating in and out of positive territory and later finishing the day down 128 points.
The frenzied trading weighed heavily on oil markets, sending prices plummeting more than $9 a barrel at one point.
"There's so much fear out there and that's really gripping the oil market. People are just afraid to hold a position so they're closing out and selling off," said Michael Lynch, president of Strategic Energy & Economic Research in Winchester, Massachusetts.
Light, sweet crude for November delivery ended the day $8.89 lower at $77.70 a barrel on the New York Mercantile Exchange. It was the lowest settlement price for a front-month crude contract since Sept. 10, 2007.
Underscoring Americans' waning appetite for fuel, a gallon of regular gasoline dropped 5.3 cents overnight to a new national average of $3.35 a gallon, according to auto club AAA, the Oil Price Information Service and Wright Express.
Prices dipped below $3 a gallon on average in Kansas, Missouri and Oklahoma. If crude keeps falling, the rest of country should see sub-$3 gasoline in the next few weeks if not sooner, experts say.
Oct 11, 2008 | 12:35 AM
#3
that is getting better but not good enough..... Gas is going for 2.99 and drops every other day, for 87 93 oct is like 3.39 or 3.49, I will not be happy with gas prices around 2 bucks or less. This time in 03 it was around 1.30.
http://www.gasbuddy.com/gb_retail_pr...t.aspx?time=24
check it out.
http://www.gasbuddy.com/gb_retail_pr...t.aspx?time=24
check it out.
Oct 11, 2008 | 01:32 PM
#6
Oct 11, 2008 | 01:48 PM
#7
With the millions of jobs the oilfield created during the high prices, when it falls thousands of jobs will be lost. As much youd like not to believe but alot of oil companies are in debt, one of the biggest oil and gas companies in Oklahoma (Chesapeak)has been told once they get the wells drilled that the drilling right now to stack them out once they are completed. They have also already been laying alot of people off. Alot of the service companies that actually work on wells have bought new equipment and have to pay that off, when the prices go down they cant charge as much and workers will lose their jobs. Bigger companies may not have any problems but the smaller oilfield companies like I work for may struggle for a while, and with the big companies that have spent too much money will have problems too.
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Oct 11, 2008 | 02:03 PM
#8
With the millions of jobs the oilfield created during the high prices, when it falls thousands of jobs will be lost. As much youd like not to believe but alot of oil companies are in debt, one of the biggest oil and gas companies in Oklahoma (Chesapeak)has been told once they get the wells drilled that the drilling right now to stack them out once they are completed. They have also already been laying alot of people off. Alot of the service companies that actually work on wells have bought new equipment and have to pay that off, when the prices go down they cant charge as much and workers will lose their jobs. Bigger companies may not have any problems but the smaller oilfield companies like I work for may struggle for a while, and with the big companies that have spent too much money will have problems too.
Oct 11, 2008 | 02:24 PM
#9
With the millions of jobs the oilfield created during the high prices, when it falls thousands of jobs will be lost. As much youd like not to believe but alot of oil companies are in debt, one of the biggest oil and gas companies in Oklahoma (Chesapeak)has been told once they get the wells drilled that the drilling right now to stack them out once they are completed. They have also already been laying alot of people off. Alot of the service companies that actually work on wells have bought new equipment and have to pay that off, when the prices go down they cant charge as much and workers will lose their jobs. Bigger companies may not have any problems but the smaller oilfield companies like I work for may struggle for a while, and with the big companies that have spent too much money will have problems too.
Honestly though I would be perfectly happy if gas settled at $2 a gallon. You can't buy a gallon of anything for $2 now. Hell a gallon of milk is $4, a gallon of paint.
