| Submit your comments on this article |
| Home Front Economy |
| Oil falls on low demand forecast |
| 2008-12-10 |
| Oil prices have shed earlier gains after the US government predicted that global oil consumption would decline both this year and next. US crude was down 84 cents at $42.87 a barrel on Tuesday and London Brent crude dropped $1.09 to $42.33. Oil prices rose slightly earlier Tuesday on expectations that the Organization of Petroleum Exporting Countries (OPEC) would make a big cut in its output levels at a Dec.17 summit in Algeria. OPEC President Chakib Khelil said on Saturday that oil markets should be prepared for a 'surprise' output cut at the summit. The US Energy Information Administration said in a report on Tuesday that the world oil demand would fall by 50,000 barrels per day (bpd) in 2008 and 450,000 bpd in 2009. It is the first time since the early 1980s that global oil consumption would decline in two consecutive years. Oil prices have lost more than $100 since hitting a record high of above $147 a barrel as the global financial crisis has sharply slashed demand. |
| Posted by:Fred |
| #9 My advice, buy while it's cheap. |
| Posted by: Grolush Darling of the Hatfields3195 2008-12-10 18:40 |
| #8 No, it says they are more scared about putting it anywhere else! With deflation, they really ARE getting a RoI. |
| Posted by: Bright Pebbles 2008-12-10 14:25 |
| #7 BP, that says the currency pros believe the dollar still has a lot of appreciation left. Still I wonder how the US will pay for the $3 trillion bailout (yes, it's mostly loans, but payback is iffy) and a $trillion Obama Youth program. |
| Posted by: ed 2008-12-10 13:14 |
| #6 More disinformation from the experts who have been out to lunch for years. The cited article obscures the %-age of consumption drop worldwide involved, it isn't much, yet the price of oil has plunged. I expect a future slight increase in world consumption will cause a drastic price increase (predicted by most Peak Oil theorists). There is a very complex interplay between the current world financial crisis & the flattening of world oil production which I don't understand. I don't think anyone understands it. Burn it while it's cheap. Investing in upgrades of alternate transportation methods now (such as rail, especially electrified rail) would be wise but won't happen, people have drunk too deeply of the Kool-Aid of Happy Motoring. |
| Posted by: Anguper Hupomosing9418 2008-12-10 12:54 |
| #5 Also dollar strength helping, people are prepared to buy 3Month USD Treasuries at less than 0.00 yield! |
| Posted by: Bright Pebbles 2008-12-10 11:01 |
| #4 Oil falls on There, fully repaired. |
| Posted by: Besoeker 2008-12-10 09:24 |
| #3 P2K - When the banks stopped loaning to buy commodities, apparently. :) |
| Posted by: Grenter, Protector of the Geats 2008-12-10 09:17 |
| #2 When did we hit Peak Oil(c)? or was that Peak Oil Speculation(c)? |
| Posted by: Procopius2k 2008-12-10 08:37 |
| #1 And don't forget: Keep working on nuclear, wind, etc.. And in the meantime: Drill. |
| Posted by: gorb 2008-12-10 02:40 |