[quote]SINGAPORE (AP) — Oil prices tumbled to their lowest in almost a year to below $78 a barrel Tuesday in Asia amid a global sell-off of equities and commodities triggered by investor fears the U.S. will soon fall into recession.
Benchmark oil for September delivery was down $3.48 to $77.83 a barrel, the lowest since September 2010, at midday Singapore time in electronic trading on the New York Mercantile Exchange. Crude fell $5.57, or 6.4 percent, to settle at $81.31 on Monday.
In London, Brent crude was down $4.68 at $99.06 per barrel on the ICE Futures exchange.
A downgrade of U.S. debt one notch from AAA to AA+ by Standard & Poor's announced Friday sparked investor panic this week. Oil traders often look to equities as a barometer of overall investor confidence, and Monday the Dow Jones industrials plunged 634.76 points, or 5.6 percent, the sixth-worst point decline for the Dow in the last 112 years.
Asian stocks opened Tuesday sharply lower.
"It's clear we're entering, or are on the precipice of, another global financial crisis," said Richard Soultanian, an analyst with NUS Consulting. Soultanian expects crude to fall to between $55 and $60 before rebounding to the mid-$70s in the fourth quarter.
Investors will be closely watching the latest consumption forecasts from OPEC and the Department of Energy scheduled to be released later Tuesday. Traders will also be looking to the U.S. Federal Reserve to calm markets and possibly announce another round of monetary stimulus.
The Fed has already twice implemented a program of Treasury bond purchases, known as quantitative easing, since the 2008 financial crisis.
"The way prices are falling, especially on stock exchanges, they are likely to keep falling until the Fed unveils some new program," energy consultant Cameron Hanover said in a report. "There are very few options available, but this is threatening to be a complete meltdown."
Some analysts argue strong crude demand from developing countries such as China should help stabilize oil prices. Most companies and consumers have less debt than two years ago, which should help lower the risk of global economic growth slowing sharply, energy analyst and trader Blue Ocean Brokerage said.
"We can all take a chill pill and understand this is not the recession of 2009," Blue Ocean said in a report. "All of this rumbling that demand can falter from here is (nonsense). The major difference today from 2009, the world is a better place financially."
Lower commodities prices will also lower energy and food costs, freeing up consumer purchasing power and slowing inflation. Asia is a net importer of crude, and lower oil prices should give policymakers in the region more leeway to ease recent monetary tightening.
Crude has fallen 32 percent since reaching nearly $115 in May.
Still, most traders seem to be waiting for selling to subside before jumping back in.
"We have no interest in attempting to catch a falling dagger," energy analyst and trader The Schork Group said in a report. "The adage is to buy when there is blood on the streets, but timing the bottom has led to the demise of traders far greater than ourselves."
In other Nymex trading in September contracts, heating oil fell 4.1 cents to $2.76 a gallon while gasoline dropped 5.1 cents at $2.64 a gallon. Natural gas futures slid 2.1 cents at $3.91 per 1,000 cubic feet.[/quote]
[url]http://news.yahoo.com/oil-tumbles-below-78-amid-us-recession-fears-042509060.html[/url]
But prices for gas are still very high.
Well atleast for me.
Fall more fall more fall more fall more.
[QUOTE=ewitwins;31619974]Fall more fall more fall more fall more.[/QUOTE]
Agreed, lower gas prices are the only redeeming quality of a recession. We're all getting fucked at our jobs if we're lucky enough to have them, we don't need to get fucked at the pump too.
Good thing I didn't buy gas today. I'm going to wait for the prices to update at my local place
I paid 3.77 literally 4 days ago. Gas is now 3.67 :suicide:
[QUOTE=areolop;31620146]I paid 3.77 literally 4 days ago. Gas is now 3.67 :suicide:[/QUOTE]
ye canst get a ticket to the theatre with that fortune laddy.
[editline]8th August 2011[/editline]
well you could a century or so ago.
waiting for gas under 3 dollars man
Yep, America's fucked. Shit is going to hit the fan sooner or later
At least gas will be cheap
Like the ungrateful grandkids chanted to their frail old rich grandmother
[b]FALL FALL FALL FALL FALL FALL[/b]
[QUOTE=Masterofkills09;31619946]But prices for gas are still very high.
Well atleast for me.[/QUOTE]
They need to creep down. Oil only been getting cheaper within the last few days.
Of course if they were going up as fast the station owners can't raise the price fast enough.
[quote]U.S. will soon fall into recession.[/quote]
...What's it been doing all this time?
No gas problems here... huhehueheuhueheh
0.2 dollars a liter/0.8 dollars a gallon.
[QUOTE=Skooma;31620512]They need to creep down. Oil only been getting cheaper within the last few days.
Of course if they were going up as fast the station owners can't raise the price fast enough.
...What's it been doing all this time?[/QUOTE]
It was sort of climbing out of the recession. By economic terms the recession ended over a year ago.
[editline]9th August 2011[/editline]
Hope the price of gas continues to go down, that'll be a godsend. Also thank god I have a guaranteed job for the next year.
[img]http://imgkk.com/i/lqlh.jpg[/img]
[QUOTE=PunchedInFac;31620544]No gas problems here... huhehueheuhueheh
0.2 dollars a liter/0.8 dollars a gallon.[/QUOTE]you're in Qatar, you're probably within a mile of a massive oil well anyway
[QUOTE=ButtsexV3;31620816]you're in Qatar, you're probably within a mile of a massive oil well anyway[/QUOTE]
You couldn't be closer to the truth. I live in a gas (that's LNG, not petrol) company's employee housing.
[QUOTE=PunchedInFac;31621124]You couldn't be closer to the truth. I live in a gas (that's LNG, not petrol) company's employee housing.[/QUOTE]
I've learned about more countries on Facepunch than I have in Geography class.
Qatar is a new one to me :v:
I learned about Qatar from sitting on wikipedia all day and hitting random article
[QUOTE=areolop;31620146]I paid 3.77 literally 4 days ago. Gas is now 3.67 :suicide:[/QUOTE]
how i mourn the loss of your $2
If prices of oil drop, the price of transportation would increase dramatically causing traveling by bus, train, car and plane even more expensive. This is BAD
Also food prices will increase
In 2007 gas was as low as $1.36 for me I hope that happens again.
[editline]9th August 2011[/editline]
[QUOTE=BCell;31626385]If prices of oil drop, the price of transportation would increase dramatically causing traveling by bus, train, car and plane even more expensive. This is BAD
Also food prices will increase[/QUOTE]Wait what that's like the opposite of what happens.
[QUOTE=BCell;31626385]If prices of oil drop, the price of transportation would increase dramatically causing traveling by bus, train, car and plane even more expensive. This is BAD
Also food prices will increase[/QUOTE]
In the US, Mass Transit isn't massively subsidized with gas taxes, so no.
[QUOTE=BCell;31626385]If prices of oil drop, the price of transportation would increase dramatically causing traveling by bus, train, car and plane even more expensive. This is BAD
Also food prices will increase[/QUOTE]
"oh shit now we can buy oil for our vehicles at a cheaper rate, well, time to increase the fare for all transport!"
show us your thought pattern
I haven't had the money to put fuel in my car since the 30th, it's just been sat on my drive, bone dry, I have to wait until next pay day to do anything.
The price per litre here has risen twice in the past few weeks, yet oil prices are going down? This makes me sad.
[QUOTE=ewitwins;31619974]Fall more fall more fall more fall more.[/QUOTE]
When oil goes down the Canadian dollar goes down and it stops being affordable for me to buy trinkets from the US though
Nice job breaking it, Republicans.
...again.
[QUOTE=RichyZ;31626422]buy barrels of gasoline, move to the uk
sell gas to residents of uk
make the arab dollars.[/QUOTE]
[media]http://www.youtube.com/watch?v=bcuAw77J8_Y&ob=av3e[/media]
[QUOTE=Sega Saturn;31630582]Nice job breaking it, Republicans.
...again.[/QUOTE]
Did you read?
[QUOTE=FZE;31631313][media]http://www.youtube.com/watch?v=bcuAw77J8_Y&ob=av3e[/media][/QUOTE]
Too bad all the (really) rich middle easterners look like this:
[img]http://farm4.static.flickr.com/3402/3580999821_699230b6e7.jpg[/img]
They are so goddamn rich this happend:
[img]http://images.thecarconnection.com/med/jaguar-xj220-abandoned-in-desert_100310036_m.jpg[/img]
One of the few XJ220s ever made and it rots here. of all places. Ive been there and seen it. It's a horrible sight and tells you how much the richer people here sqaunder their time and money.
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