Oil Down To $88 A Barrel

By Justin Gardner | Related entries in Economy, Energy, Gas, Oil

As purse strings tighten and consumption plummets, the market runs screaming.

Reuters has more…

Oil dropped $6 to below $88 a barrel on Monday on expectations the growing financial crisis will further slow already faltering global fuel demand.

Crude prices have plummeted from a peak over $147 a barrel set on July 11 as high fuel prices and the growing financial crisis slow oil demand in top consumer the United States and other industrialized nations.

“The prevailing macro sentiment is now crystallizing around the notion that we are heading into a synchronized global slowdown, a mirror image of the across-the-board expansion we saw from 2004 to early 2007,” said Edward Meir of broker MF Global.

A silver lining to this crisis or will Americans simply see cheaper gas prices and start consuming more?

I hope it’s the former, but I fear the latter is much likelier.


This entry was posted on Monday, October 6th, 2008 and is filed under Economy, Energy, Gas, Oil. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

3 Responses to “Oil Down To $88 A Barrel”

  1. Jimmy the Dhimmi Says:

    A silver lining to this crisis or will Americans simply see cheaper gas prices and start consuming more?

    I hope it’s the former, but I fear the latter is much likelier.

    If Americans simply see cheaper gas prices and start consuming more, that would be the silver lining, No?

  2. Justin Gardner Says:

    Well, no. Hopefully they’ll keep their consumption lower and start moderating their behavior so they’ll save more money and keep gas prices lower.

  3. Mike Says:

    Wait, I thought supply and demand weren’t responsible for the price of oil? I thought it was just a bunch of rich, cigar smoking oil executives who set the price. Thanks for clearing that up. I was thinking maybe they were just starting to feel to holiday spirit a little early.

    (Sorry for the blatant sarcasm. No bad will intended, but you have to admit it’s suspicious how people frame the oil debate in the way that benefits their position: when prices are high, oil executives are to blame. When prices are low, it’s because the economy is poor).

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