Crude Oil Prices Start To Freefall, But Will It Continue?

Crude oil prices continued their retreat on Tuesday, falling $4.32 to $91.39 a barrel in early trading. That drop follows a decline of $5.47 a barrel to $95.71 on Monday, closing under the symbolic $100-a-barrel threshold.

Uncharacteristically, oil and gasoline prices moved in opposite directions on Monday, with gasoline up 16 cents a gallon nationwide in recent days because of refinery disruptions caused by Hurricane Ike.

Ike wreaked havoc along the Texas coast over the weekend. While it apparently caused only moderate damage to oil platforms in the Gulf of Mexico and to refineries along the coast, those refineries had to shut down ahead of the storm, and many have yet to restart because of power failures.

Read Article

gooch - 9/16/2008 2:05:35 PM

+1 Boost

And so gas begins its inexorable slide.
It is quite obvious the spike we're going through now is a cash grab by the oil companies. One day, at a station on a U.S. military base in the DC region, gas shot from $3.59 per gallon to $4.05. After vociferous complaints, the next day, it was at $3.69 per gallon. No explanation, no nothing. Hurricane Ike wasn't worth 46 cents per gallon on fuel that was already in the ground.

gooch - 9/16/2008 2:06:56 PM

+2 Boost

And when crude is going down despite the hurricane, but prices still go up, it becomes quite clear this was a cash grab. With the way crude has gone down, gas should correspondingly be around $3.30 or so per gallon.

toolatetorace - 9/16/2008 3:12:32 PM

+1 Boost

All businesses borrow from banks or at least get goverment subsidized loans from the government when catostrophic weather hits ............. except the oil companies . They borrow from thier own customers on a non return basis

Peyton18 - 9/16/2008 5:29:41 PM

0 Boost

It could be argued that $4 gas is the best thing that happened for America. (speaking as an american)

stone - 9/16/2008 7:43:00 PM

+2 Boost

I would disagree with that argument. Tell that to someone who makes minimum wage or is on a fixed income driving a big V8 that's been paid off for the last 7 years, do they deserve it? I know some of you have parents or grandparents in that very situation. What about our ground and airline transportation delivering the things we all need? They are passing that cost on to you so you are paying for $4 gas not once, but twice, maybe 3 times if you fly. I support the free market, but these prices have put a great many people in a world of hurt in this country. Not everyone can afford to trade in their SUV which due to plummeting resale value is worth a fraction of what it used to be, if they can't afford gas where does that down payment come from? In addition, a Prius just doesn't fit everyone's needs, some need a larger vehicle. I still remember back in the day struggling to pay for gas WHEN IT WAS CONSIDERED CHEAP, thank god those days are over but I can only imagine what some people are going through right now.

Stone

BMW995 - 9/17/2008 2:08:05 PM

+2 Boost

When the price of crude oil goes up the price of gasoline goes up in lock step with oil.
When the price of crude oil goes down the price of gasoline falls Oh so slowly down.
They can't have it both ways. Obviously some massive collusion is going on.

Designer1 - 9/18/2008 6:40:44 AM

+2 Boost

Greediness of the big American companies will destroy America. I sometimes see them as invaders and nothing else.