Oil drops below $70 after Zarqawi death

[slackmaster]

From the Washington Post Web site.

By Janet McBride
Reuters
Thursday, June 8, 2006; 10:36 AM

LONDON (Reuters) - Oil fell below $70 a barrel after U.S. aircraft killed al Qaeda's Iraq leader Abu Musab al-Zarqawi on Thursday, raising faint hopes for a let-up in attacks on Iraq's wrecked oil industry.

OPEC member Iran's willingness to talk with opponents of its nuclear program to "solve misunderstandings" was another factor pushing oil away from its $75.35 a barrel record high hit in April, market participants said....

...U.S. oil <CLc1> was down $1.22 at $69.60, its lowest for two weeks, at 1425 GMT. London Brent crude <LCOc1> was down $1.02 at $68.17....

Full copyrighted article at http://www.washingtonpost.com/wp-dyn/content/article/2006/06/08/AR2006060800146.html

[maxsolomon]

1. all we have to do it kill arabs & the price goes down?

we can make that happen!

hell yes, :sarcasm:

[Blaq Dem]

21. I think the plan is for arabs to kill themselves

It's so sick and twisted.

[mtnester]

2. I BETTER go down the street and see gasoline below $2.50

I just better

[slackmaster]

4. LOL!

Yeah, me too.

<snicker>

[Dead_Parrot]

3. Did he leave us some in his will, or something?

This time yesterday the number of insurgents was in the thousands. Today, it's in the thousands. What changed?

[rodeodance]

5. Has the body of this Zarqawi person been shown?

[Name removed]

6. Deleted message

Message removed by moderator. Click here to review the message board rules.

[cliss]

7. I don't think Mr. "Boogey-Man" Zarkawi

had anything to do with it. I believe the price has cooled off for other reasons:

1) The US is tentatively smoking the Peace Pipe with Iran. ....Supposedly. But the US is acting like the crazed, schizophrenic Prima Donna, so don't count on any real progress. But at least for the moment, things have settled down.

2) Oil consumption is down slightly. People are really trying to cut back....and really, they don't have much choice.

[teryang]

8. Agree strongly with no 1, Zarqawi's death irrelevant to oil prices

As to number 2, oil consumption isn't really down, refineries and ethanol conversion are providing a downstream choke point. Thus gasoline stocks declined, oil stocks went up. Iranian spin is the major factor affecting price.

In point of fact the Zarqawi story is distraction from the fact that the US totally caved in on the Iranian dispute. The Iranians are off the hook. The US fell for a phony Albright solution. The Iranians screwed up the pressure, the dollar took a huge dive at the prospect of war, and the central bankers told Bushwad and Rumsfelt to fuck off or watch the US dollar and economy fall off a cliff.

Rumsfeld and Cheney blinked when confronted with the real powers behind the dictatorship.

[cliss]

17. Interesting. Thankx

for that background info.

I hadn't made the connection with the currency drop. I believe that there are Big things happening behind the scenes, right now. There are major powers battling it out. According to From the Wilderness, there are some major powers which are starting to take action, and they sense disaster on the horizon.

"Apparently, they are the Wilsonians. Cheney and Rumsfailed have their own powerful backers. In case it’s gone unnoticed, the ancien political Praetorians assembled at the Bush White House recently to conduct an intervention. Imperial eminence gris Zbigniew Brzezinski has been lobbing salvos of op-ed columns at the stupidity of the decision to invade Iraq. Earlier this month, a Blue-Ribbon panel of Wilsonian Machiavellis met with Bush to “offer advice on the war.” Numbered among these sages were Madeleine Albright, William Perry, William Cohen, James Baker, Lawrence Eagleburger, Colin Powell, and – ominously – Robert McNamara, the Rumsfeldian metrician of the Vietnam quagmire..."
- - - -
We'll see what happens next.

[teryang]

25. You're way ahead of me

I didn't see that article, but I recognized the handiwork.

[HuffleClaw]

9. "Global Warming Recedes following Zarqawi death"

tomorrows fox headline!

[daleo]

10. If Zarquawi's death caused oil to drop under $70

Then surely it was also responsible for the stock market tanking 100+ points today.

I wonder how it will affect the Oilers-Hurricanes game?

[ECH1969]

11. The stock market went down 100 points?

It went up according to CNBC.

[daleo]

12. You're right, now that I think of it

I think it was down 160 by noon, but had a miraculous recovery. My mistake.

So, I guess Zarquawi's death actually caused the market to go up. I still wonder how it will affect the hockey game.

On edit: Here's a bit of today's blather:
The Dow, which was down as many as many as 173 points (-1.6%) and 8.1% off its May 10th high early in the day, snapped a four-day losing streak by inching into the green as the closing bell sounded.

[Eugene]

13. Back to reality... "supply concerns hard to shake" - Reuters

(Reuters via ABC)

Oil sticks at $70 as supply concerns hard to shake

Jun 8, 2006 — By Neil Chatterjee

SINGAPORE (Reuters) - Oil prices consolidated above $70 on Friday
as traders remained cautious on the potential for improved supplies
from Iraq and reduced tension over Iran's nuclear program.

<snip>

But analysts warned against reading too much into the killing of Zarqawi,
who masterminded the deaths of hundreds in bombings, saying it would not
end threats to an oil sector curtailed by decades of war and sanctions.

"We suspect that the death of Zarqawi will not bring more security to the
Iraqi oil sector, where political instability and violence will continue
to hamper exports and investment," said David Thurtell of the Commomwealth
Bank of Australia.
<snip>

http://abcnews.go.com/Business/wireStory?id=2056390

[RebelOne]

14. Why isn't it showing up at the pump?

The prices are still the same.

[Vinca]

15. Because the fat Mobil guy still needs his retirement package.

DUH!:sarcasm:

[lonestarnot]

16. Well shhhhhh. nobody tell them that there are 100s more waiting in line

to take his place.

[rooboy]

18. 2004 Ohio vote count declared valid after Zarqawi death. n/t

[BigDDem]

19. In other news...

price of gasoline goes up .25 per gallon.

[IChing]

20. $71.31 a $3.10 gain in a day.

Oil prices now rising because of al-Zarqawi's death. You'd think his body was clogging the pipes, if it wasn't busy being dragged across television

[daleo]

22. The Zarquawi effect didn't last long

Which tells you it was one of those post hoc, ergo propter hoc fallacies that business writers love so much.

"It was a rainy July, so housing prices were weak as people didn't want to go out in the rain."
"It was a sunny July, so housing prices were weak as people went to the beach instead."

"Oil prices went down because of price speculation after Zarquawi's death".
"Oil prices went up because of price speculation after Zarquawi's death".

[Imagevision]

23. Oil could drop down to $20.00 a barrel - still no difference @ the pump!!

[mantis49]

24. Then how come gas went up $0.25 here in the last 2 days?

eom

[twaddler01]

26. Just wait until the war with Iran

you think the prices are bad now? :crazy: