Badger Blog Alliance

Sic Semper Tyrannis

Thursday, July 17, 2008

It's working!

Just two days ago, I postulated that if we all started wailing and gnashing our teeth over the "falling price of oil," speculators would get nervous and start to sell off, which would actually bring about falling prices of oil.

Well, despite a total lack of cooperation on (as far as I can tell) any other blogs, it seems to be working.

NEW YORK - Oil prices fell below $130 a barrel for the first time in more than a month Thursday, as a dramatic slide entered a third day along with a sharp sell-off in natural gas.

The declines accelerated amid growing concerns about the weakening U.S. economy.
So the price of oil is down in part because of the economy, but we’re worried about the economy in large part because of energy costs. Go figure.

Back to the prices:

Light, sweet crude for August delivery dropped $5.31 to settle at $129.29 a barrel on the New York Mercantile Exchange. Prices have fallen more than $15 in just the past three days.

Natural gas futures for August delivery fell more than 8 percent Thursday, marking their biggest one-day drop in nearly a year, according to Nathan Golz, researcher at Wachovia Securities in St. Louis. Prices for the key heating, cooking and power generation fuel have tumbled more than 20 percent since their peak before the Fourth of July, and are now trading at their lowest point since April.

A number of market observers say there was nothing supporting the run up in natural gas prices, which peaked in early July, and that this week's sell-off of oil has only helped speed the declines.
By the way, I love the phrase "light, sweet crude." How'd they come up with that, exactly? Guys in overalls carrying oversized wrenches with grease all over their faces sipping small glasses of thick black oil and saying "fine bouquet on this, I'd say. Nice and light." "Mm, yes, a bit sweet, too."

Anyway, back to work, people! Remember, the key is to spread panic. Make people believe the price of oil and other energy sources is falling, and falling fast, so you'd better get out now!