September 13, 2006

HAD ENOUGH?:

Oil prices poised to drop sharply, energy consultant says (Kevin G. Hall, 9/14/06, McClatchy Newspapers)

The recent sharp drop in the global price of crude oil could mark the start of a massive sell-off that returns gasoline prices to lows not seen since the late 1990s - perhaps as low as $1.15 a gallon.

"All the hurricane flags are flying" in oil markets, said Philip K. Verleger, a noted energy consultant who was a lone voice several years ago in warning that oil prices would soar. Now, he tells McClatchy Newspapers, they appear to be poised for a dramatic plunge.

Crude oil prices have fallen about $14, or roughly 17 percent, from their July 14 peak of $78.40. After falling seven straight days, they rose slightly Wednesday in trading on the New York Mercantile Exchange, to $63.97, partly in reaction to a government report showing fuel inventories a bit lower than expected. But the overall price drop is expected to continue, and prices could fall much more in the weeks and months ahead.

Here's why.


The Fed should apologize and cut a full point.

Posted by Orrin Judd at September 13, 2006 10:32 PM
Comments

Well, rumor has it there may be a nuke attack during Ramadan.

Via LGF:Here’s a good post by Dan Riehl summing up the rumors (so far unsubstantiated) of an impending Al Qaeda attack involving some sort of nuclear material: Al-Qaeda And The Nuclear Threat.

More at Hot Air: Report: Al Qaeda planning nuke attack for Ramadan.

Posted by: Sandy P at September 13, 2006 11:06 PM

No, no, the attack was going to come on the Shi'a holiday, remember?

Posted by: oj at September 13, 2006 11:13 PM

Might be Afghanistan.

Posted by: Sandy P at September 13, 2006 11:57 PM

Dean Barrett over at Hugh Hewitt's website has a good explanation of why it would be very difficult to explode a nuke in a major city under current logistics. It doesn't mean it could never happen or that someone might not get some radioactive material and strap it around a suicide bomb belt, but the former would take quite some doing and the latter would have only limited contamination effects.

Posted by: John at September 14, 2006 1:49 AM

"if we have a warm winter like we had last winter, you could see a large fall in the price of oil" Thank God for global warming?

Posted by: ic at September 14, 2006 4:41 AM

Price of gas in Cincinnati yesterday: $2.079

Posted by: Greg Hlatky at September 14, 2006 7:39 AM

It's Bush's fault! It's Bush's fault! Oh, wait... It's an election year ploy! It's an election year ploy!

Posted by: Jayson at September 14, 2006 9:56 AM

OJ is completely right. The Fed is way too tight. We've now run out of places to store crude so prices are going down. To me the clincher was when Iran got busted faking 2 military advancements. They are not going to close the Straits of Hormuz with PhotoShop.
That was the fear that led to the hoarding. Venezuela and Nigeria have pretty much done all they can already.

Posted by: JAB at September 14, 2006 9:30 PM
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