July 24, 2008


Oil price falls as speculators bale (David Uren | July 25, 2008, The Australian)

SPECULATORS are quitting their bets that oil prices will continue rising, sending the oil price tumbling below $US125 a barrel for the first time in six weeks and promising further relief at the bowser for Australian motorists. [...]

The oil price has fallen by 15 per cent from its record of $US147.50 a barrel set two weeks ago, with no sign that its decline has ended. [...]

Most of the world's oil is produced at a cost of less than $US60 a barrel.

Talk about being divided by a common language....

Posted by Orrin Judd at July 24, 2008 1:26 PM

and what the heck is a "bowser"?

Posted by: Foos at July 24, 2008 2:51 PM


Posted by: PapayaSF at July 24, 2008 3:23 PM

The Commodity Futures Trading Commission allows the purchase of oil futures contracts on 10% margin. This works as long as prices go up. But when prices go down it creates a stampede to unwind positions for margin calls.

The dive began a few minutes after Bush's press conference last week demanding that Congress act. (Though you won't read about that in the MSM.)

Posted by: Gideon7 at July 24, 2008 5:48 PM
blog comments powered by Disqus