Oil Markets Search for Signs of Bubble Bursting

BusinessOil Markets Search for Signs of Bubble BurstingOil Markets Search for Signs of Bubble BurstingThe Associated PressThe months-long rise in oil prices took a steep dive this week as another slide in oil capped crude's biggest one-week drop in more than three years. (July 18)The months-long rise in oil prices took a steep dive this week as another slide in oil capped crude's biggest one-week drop in more than three years. . Trading began on Monday with a barrel of oil commanding more than $145, slightly below last Friday's high, which topped $147. But on Tuesday, as Federal Reserve Chairman Ben Bernanke delivered a bleak outlook on the economy, the mood began to change. [Notes:SOT Adam Schrek, AP Energy Writer] WHEN THE ECONOMYS IN BAD SHAPE PEOPLE OF COURSE ARE NOT BUYING AS MUCH, NOT DRIVING AS MUCH AND THAT REDUCES DEMAND FOR OIL. THAT WAS ONE OF THE FACTORS THAT WAS IN PLAY. [Notes:SOT Adam Schrek, AP Energy Writer]As news of Bernanke's grim outlook spread to the markets, traders began to move oil more quickly than they had been in recent days.WHAT HAPPENS IS WHEN YOU HAVE A BIG DROP, THAT STARTS TO CONVINCE PEOPLE TO SELL AS WELL. THEN SOME PEOPLE HAVE ORDERS FOR OIL AT CERTAIN POINTS, EITHER TO BUY OR SELL ALREADY SET UP IN THE COMPUTER. THAT TRIGGERS AN OUTOMATIC SELLING OF MORE OIL SO ITS STARTS TO ESCALATE. [Notes:Graphic - Oil Prices] The escalation continued through Friday, with oil losing to close down . 41at $128.88. Despite losing $14.86 for the week, consumers are unlikely to see much relief at the pump anytime soon. [Notes:SOT Adam Schrek, AP Energy Writer]THERES DEFINETLY A CONNECTION BETWEEN THE PRICE OF OIL AND THE PRICE OF GAS. BUT ITS NOX EXACTLY ITS AS SIMPLE AS IF THE PRICE OF OIL GOES UP A DOLLAR OR TWO THE PRICE OF GAS GOES UP BY A SIMILAR FACTOR. IT TAKES QUITE A BIT OF TIME FOR OIL TO BE BOUGHT AND SOLD, REFINED INTO GAS AND THEN SOLD. [Notes:Horse and buggy walking past gas station] So for consumers looking to bypass the pain at the pump, the options are limited.MOSMOSAnd with gas tanks like these topping off at over $100, its easy to see how high oil prices are pinching precious dollars from the rest of the struggling economy. ___ ___, The Associated Press.

Category:

News & Politics

Tags:

• oil
• prices
• markets
• search
• signs
• bubble
• bursting

[soulchild2008]

Don't buy an SUV, simple! People should be praising the fact that Hummer is going defunct.

[lon9i9]

They should inform more, like the people that were laid off on top of the high gas prices. Food prices rose as well. People have lost homes, cars and other property. Anyone think its fun to choose between paying a bill and eating. Go ahead and eat food and then comes the notice delivered by your friendly sheriff that you should kick yourself out of the place you sleep in. Whoever made money on the price of oil is the blame. They laugh to the bank while many people suffer.

[WolYou]

21 gallons for a tank load? Carrying around 78 kilograms of gas for nothing, lol. What about having proper cars? An SUV is just a waste of energy. You're paying 90% gas for the transportation of more than one ton of metal and plastic and just 10% for the payload. I really can't fancy what's in the brains of the people. Do they link the size of their cars to something personal?

[BigDaddy1968]

Good to see not ALL liberals are humorless...

Big Daddy

Helping to make the world a better place, one YouTube video at a time...

[trichome333]

LOL that was funny. Dude these glasses look bad ass on me!

[BigDaddy1968]

"BOOKS, check'em out!"

Rose-colored glasses- Take them off!

[trichome333]

BOOKS, check'em out!

[BigDaddy1968]

"COLLEGE, get some"

Brain cells. Barter for some...

Big Daddy

[trichome333]

COLLEGE, get some.

[BigDaddy1968]

"Dude Im so not the liberal you think i am,"

That's what ALL liberals say. hahah

"Keep telling yourself anyone who disagrees with you is a San Francisco fag"

Well, I never thought of that, but you know what they say...if the HIGH HEELS fit.... LOL!!!

" Bush has zero leverage over any market on this planet."

Except to BLAME him when oil prices go up! Whoops, can you say busted???

Big Daddy