Oil Prices Plunge 10 Percent After House Defeats Bailout

[Hissyspit]

Source: AFP

Oil prices plunge 10 pct after House defeats bailout

18 minutes ago
NEW YORK (AFP) - Crude oil plunged 10 percent Monday after the US House of Representatives narrowly rejected a 700-billion-dollar government bailout of the financial sector, throwing markets into a tailspin. Investors panicked as the countdown on the House vote signaled the lawmakers would torpedo the plan that President George W. Bush's administration argued was crucial to avert a wider economic collapse.

New York's main contract, light sweet crude for November delivery, tumbled 10.52 dollars, or 9.8 percent, to close at 96.37 dollars a barrel. Earlier it had fallen as low as 11.85 dollars.

In London, Brent North Sea crude for November dropped 9.56 dollars to settle at 93.98 dollars a barrel. Its intraday low was 92.64 dollars.

New York oil prices accelerated their decline in late trade, as the market digested the ramifications of the House's rejection of the emergency Wall Street bailout.

Read more: http://news.yahoo.com/s/afp/20080929/bs_afp/commoditiesenergyoilprice_080929203035

[CatholicEdHead]

1. Much lower demand expected

So that is probably why we have the drop.

[tridim]

2. Don't worry, China will buy and burn the excess.

[Roland99]

8. Investors dumping the speculative commodities and stocks and flocking to safety in Gold & Treasuries

nothing to do with quantity demanded.

[ohio2007]

12. the bubble was due to burst in september. lucky congress didn't step in to prop up the market

let the system be.

[Xenocrates]

3. Its going to drop much lower than that, and OPEC can't do a thing to stop it

[ohio2007]

14. Viva OPEC........... MUuu ha ha ha haaaaaa

saw gas for $3.31/gal today.

[UpInArms]

4. perhaps the ponzi scheme has been killed

since they can't count on the 'merkin taxpayers to continue to bend over and take it

[Mugweed]

7. Yup

The "speculators" maybe thought that this isn't a good time to keep artificially inflating the price of oil. Not that this will result in corresponding gas prices. Those days are long gone.

[bluestateguy]

5. Oh, I'll be looking forward to that cheaper gas now, right?

Fat chance.

[Roland99]

9. Oct. RBOB down to $2.397. Retail (for me) used to be 50-60 cents above that. HA!

not anymore

[ibegurpard]

10. Very foolish and short-sighted statement

Oil prices affect FAR MORE than the price of gas you put in your car. Is everything you purchased manufactured in your home town? Doubtful...it was most likely trucked in.

[Ian David]

6. I just ordered home heating oil for tomorrow. Should I re-schedule? n/t

[ibegurpard]

11. Cheaper oil prices will help against inflation

Everything we buy is trucked in

[sarcasmo]

13. Helping out Main st already. We are down to 3.60 here in West Michigan.

[ohio2007]

17. $3.31 in northern Ohio

thats the lowest I've seen it but a lot of places are in the $3.40's


Guess the hurricane season spike also was a bust

[chill_wind]

19. 3.39 in NE Ohio. n/t

[depakid]

20. As a friend of mine mentioned- somewhat cheaper gas won't mean much

if people can't afford to pay for it.

[sarcasmo]

21. It will mean a lot to the trucking companies who deliver the groceries to your local store.

[ibegurpard]

22. Absolutely

I am always shocked at how people do not see the connections between gas prices and the prices they pay for EVERYTHING.

[depakid]

24. True, but if companies can't get short term financing

or have to pay exorbitant prices, that's not going to mean a whole lot.

As I said, when people don't have money- even somewhat cheaper prices are unafforable.

[L. Coyote]

15. Excellente!! I hope the speculators go bankrupt.

What is happening to oil stock prices today?

[ohio2007]

16. Their fortunes were all on paper anyway so

they never really enjoyed the fruit of other peoples labor

[L. Coyote]

23. They are the problem, privatizing profits at every turn and

sucking money out of the market. Some fortunes were made, no doubt, on pure speculation. That is how we got to this point, with excess profits leaving the system. For example, the builders, realtors and mortgage brokers get paid in full at the point of sale.

[sarcasmo]

18. Under a hundred a barrel closed at 99