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NY Times Bemoans ‘Oil’s Stunning Retreat’

From the New York Times subsidiary, the International Herald Tribune:

Oil’s stunning retreat: How long can it last?

By Jad Mouawad
Published: October 28, 2008


NEW YORK: After surging to record levels this summer, oil prices have suffered a dizzying collapse in recent months, echoing the darkening prospects of the global economy.

Within three months, drastic swings drove oil prices from their peak of $147.27 a barrel to less than $65 a barrel. Oil industry analysts at Goldman Sachs, who had raised the possibility that prices could reach $200 this year, now believe that oil could drop to $50 a barrel in the event of a global recession.

While consumers can cheer the drop, producers have been alarmed at the sudden downturn in their fortunes. Fears of a global slowdown have kicked off a down cycle in the oil sector: It is unclear how long it will last and how low prices will go.

As oil gets caught in the wild gyrations of the financial meltdown, three major questions loom over the oil markets for next year.

What will happen to oil consumption in the United States and in China? How will producers respond to lower prices? Can the oil cartel OPEC stop the slide in prices?

Gosh, this is horrible. Let’s do hope that OPEC can stop this slide.

Never mind that such a reduction in energy cost is like a stimulus package/tax cut that can only help the nation and the global economy.

We don’t want all of Mr. Gore’s and the NYT’s investments in “green technology” to go down the drain.

This article was posted by Steve on Tuesday, October 28th, 2008. Comments are currently closed.

6 Responses to “NY Times Bemoans ‘Oil’s Stunning Retreat’”

  1. Colonel1961 says:

    Oh yes, the Goldman Sachs analysts – what a lovely lot they are. Doom and gloom and $200.00 per barrel, now pity the poor OPEC producer and his camel. And the speculators who forgot that gravity applies to commodities, as well. The tears of a clown.

    How dare Bush let oil drop below $100.00? Whatever happened to the evil Halliburton and our war for oil? Ah, the good ol’ days…

  2. JohnMG says:

    How will they ever manage to tax those obscene profits of “Big Oil” if the profits decline? Well, there goes your “tax cut” for 95% of the people. Diesel is down to $2.89/gal. here tonight. I’ll be able to fill my truck for less than $100 for the first time in many months. Ain’t that a shame?!

  3. sheehanjihad says:

    JohnMG has it nailed! This is just the tip of the iceberg…because when that trough everyone is hoping to feed from dries up because of the obscene Obama socialism….the very hand that takes money from my wallet and gives to the lazy will be bitten oh so hard! I cant wait. This is doomed to fail regardless of how they try to paint it. And I will be able to chortle each and every time….”you idiots voted for him” hahahahahahahahaahaaaaaaaaaaaaaaaaaaa!!!!!!!!!!! and point at them and laugh some more.

  4. BigOil says:

    Oil has always been a cyclical business – and the price of oil is once again dropping with the business cycle downturn. Our economy requires moderately priced energy to grow, so this should help in the short term.

    Now is when increased drilling in America should begin in earnest. If we don’t, the next oil spike will top $200. Don’t expect Barry to lead the way on energy security – since he has pledged to end dependence on Middle Eastern oil in 10 years without a corresponding increase in domestic drilling. When you tack on a likely Executive Order limiting CO2 emmissions, BO will steer the US economy towards third world status.

  5. Liberals Demise says:

    OOOOH GOODY…….Lipstick on obamas pig!! Joe the consumer has spoken.

  6. wytammic says:

    I was just commenting to my hubby yesterday that dems love high taxes and high gas prices. Who in their right friggin’ mind thinks like that? Grrrr …. just ticks me off!

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