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MarkSaha

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Get ready to haul --

(Reuters) - Oil collapsed into free-fall on Thursday, diving 10 percent and sending U.S. crude back under $100 a barrel as investors staged an unprecedented stampede for the exits.

Reuters - May 5 2011

http://www.reuters.com/

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oil prices have been consistently falling for a while now and I've only seen gas prices rise or stay high. So I doubt gas prices are gonna fall, they haven't yet.

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Today is the fourth day in a row oil prices have been falling, but by far the biggest fall of the four days. In fact, it was the fourth largest down day in the history of crude oil trading on the NYMEX.

However, typically gas prices lag a week to a week and a half before they feel the full effects of crude oil's price. Economic data that showed a slowing economy factored largely into the beginning of the fall, but once we got below the 50 day moving average it free fell to the 100 day moving average. It's a pretty strong technical indicator for lower trade in the future, but this market has been anything but predictable.

Crude oil stocks have been rising for the past 8 weeks in a row, while gasoline stocks have been falling. This past week's report was the first to show gasoline stocks rising - likely a combination of slowing demand for gas with higher prices and the fact that refineries are coming out of their seasonal maintenance periods and refining more oil.

There is no lack of oil in the world, when crude got to $110-$115 range OPEC said they felt uncomfortable that the price might hurt a recovering world economy and they felt it was $15-$20 overpriced. They are set to boost export shipments in the month of May.

Will today's fall stick? Hard to tell. There was massive liquidation across all the commodities, grains, oilseeds, metals. NY Harbor Gasoline fell 23 cents, Silver has lost 42% since making contract highs last week and gold was down near $40 today. A lot of hedge funds decided to get out and that spurred on more selling...but we have no idea where they are taking their money yet. They could come right back into the commodities markets and run it back up...

It's a waiting game.

I love my job.

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my guess is some investors got scared....

My other guess is another investor is going to gobble it up now while Its lower, and prices will continue to skyrocket. All in such a short time frame, we will never even notice a thing.

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You also have to remember that the gas at the pumps was bought at the higher oil prices, so the price at the pumps won't fall until the lower priced oil has gone through the refining process.

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Gas in my area was about $3.79 a gallon at seven last night. Then 5:30 am went to $3.69. That's still ridiculous but its a start and I'm grateful for it.

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I got diesel for the tractor yesterday....$4.59!!

This morning?.....$4.63!!!!!!

Reg un leaded?.... $3.79!! :bang_head:

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You also have to remember that the gas at the pumps was bought at the higher oil prices, so the price at the pumps won't fall until the lower priced oil has gone through the refining process.

That figures. :rolleye0014: And when the price goes up, it goes up on the gas that the station has already paid a lower price for, that's sitting in their tanks.

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I wonder if it has anything to do with Bin Laden being dead.

I hope it keeps on going down babay! Th $76.00 dollars to fill up this morning was bad! Although the price at that station was the same price it was 2 weeks ago- $3.86. That's cool!

Edited by LMK1975

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According to the papers, one cause was an unexpected global decline in consumption. This left buyers stuck with a lot of inventory, while oil speculators who were betting on even higher prices had the floor drop from under them.

Decline in U.S. consumption is partly due to the high number of unemployed. They can no longer afford to drive. With the economy still in recession, delivery trucks also burn less gas. Around the world inflation or the global recession also put a lot of other people back on bicycles.

EXCERPTS --

Oil price drop could lessen pain at the pump, analysts say

Staff Report - Daytona Beach News Journal

May 6, 2011 12:05 AM

Thursday's decline of $9.44 per barrel, or 8.6 percent, to $99.80 brings the week's loss for oil to $14.13, or 12.4 percent.

"Gas prices should drop 15 cents to 20 cents per gallon in the next couple of days," said Michael Lynch, president of Strategic Energy & Economic Research Inc. in Winchester, Mass.

Patrick DeHaan, a senior petroleum analyst with Minnesota-based GasBuddy.com, said Thursday he expects gas prices to start falling in the next couple of days.

DeHaan [attributed] the steep decline in crude prices this week… to the strengthening of the U.S. dollar, combined with news of the unexpected rise in unemployment applications nationally. Cameron Hanover analyst Peter Beutel said of the unemployment claims report, when people lose jobs, "you're killing the best part of that demand -- the part that will always be there as long as someone has a job."

Also likely contributing to the decrease in crude prices: the Energy Information Administration's announcement Wednesday of a greater-than-expected increase in U.S. crude supplies, and [MasterCard Spending Pulse's] report that American drivers are buying less fuel.

"The market is getting scary. Investors are getting out," DeHaan said. "They are getting worried about staying in the market too long."

Oil rose 35 percent from mid-February through the end of April. Thursday's sell-off was the biggest one-day percentage decline since April 20, 2009, when a barrel of oil cost less than half as much as it does now.

Analysts said the lack of any terrorist retaliation of the killing of Osama bin Laden eased concerns about the safety of the world's oil fields.

COMPLETE ARTICLE:

http://www.news-journalonline.com/news/local/east-volusia/2011/05/06/oil-price-drop-could-lessen-pain-at-the-pump-analysts-say.html

Edited by carlofab

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$4.15 for regular unleaded here today. Yesterday it was $4.17.

I can't take these gas prices being over $4 much longer! Literally makes me nauseous looking at them.

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Price of gas here in Wisconsin is $3.999 it dropped a dime yesterday, gas isn't going to go down very far, but can hope it can level off for a while. The uncertainty of where it might go is difficult, as we are a very mobile society, & like the freedom of the road. PD

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It dropped here a couple cents. It was 3.92, now it's 3.90. Walmart gas station was 3.89.

I am going to wait a few days yet, if I can, to get gas.

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