Oil Drops After Touching Record, High Prices May Cut Demand

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Oil Drops After Touching Record, High Prices May Cut Demand Monday, May 12, 2008
Bloomberg -- May 12 (Bloomberg) -- Crude oil declined after touching a record $126.40 a barrel in New York amid signs that rising prices may curb demand in emerging markets. China's oil imports declined in April as crude costs prompted refiners to cut demand, and India's industrial production grew at the slowest pace since 2002, reports today showed. Rising energy demand in China and India has contributed to a doubling in oil's price the past year. ``If you have a continuation of that drop in Chinese imports, if that extends beyond a month, and if you have a slowdown in India, that obviously changes the dynamic'' for the oil market, said Kyle Cooper, director of research at IAF Advisors in Houston.
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	Monday, May 12, 2008 Bloomberg -- May 12 (Bloomberg) -- Crude oil declined after touching a record $126.40 a barrel in New York amid signs that rising prices may curb demand in emerging markets. China's oil imports declined in April as crude costs prompted refiners to cut demand, and India's industrial production grew at the slowest pace since 2002, reports today showed. Rising energy demand in China and India has contributed to a doubling in oil's price the past year. ``If you have a continuation of that drop in Chinese imports, if that extends beyond a month, and if you have a slowdown in India, that obviously changes the dynamic'' for the oil market, said Kyle Cooper, director of research at IAF Advisors in Houston. Visit Bloomberg for full article

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magnumCA Champion Author Los Angeles Posts:1,093 Points:218,650 Joined:Jan 2008	Message Posted: 5/14/2008 5:50:31 PM	Ignore magnumCA Report Abuse
	Im worried with these prices going down sooooooooooooooooooooooo low
RollandW All-Star Author Portland Posts:798 Points:146,865 Joined:Jan 2007	Message Posted: 5/14/2008 5:39:08 PM	Ignore RollandW Report Abuse
	"high prices may cut demand" well DUH! Who can afford to go on vacation this summer, except the rich? (Politicians and oil barons will have the resorts to themselves.)
PenDoctrJD Champion Author Orange County Posts:3,179 Points:1,332,490 Joined:Aug 2001	Message Posted: 5/13/2008 11:02:03 AM	Ignore PenDoctrJD Report Abuse
	Prices should drop! ha ha
pgerassi Champion Author Milwaukee Posts:2,344 Points:499,045 Joined:Apr 2007	Message Posted: 5/13/2008 10:10:19 AM	Ignore pgerassi Report Abuse
	SSDD
ramshot412 Champion Author Riverside Posts:11,522 Points:1,154,950 Joined:Apr 2004	Message Posted: 5/13/2008 10:08:04 AM	Ignore ramshot412 Report Abuse
	"Are we being hoodwinked into looking away from a local evil to criticize a far eastern peoples trying to catch up with our standard of living?" YES!
fishy55 Rookie Author Michigan Posts:83 Points:41,905 Joined:Mar 2008	Message Posted: 5/13/2008 10:04:43 AM	Ignore fishy55 Report Abuse
	yada yada yada ssdd.
zrcat Veteran Author Twin Cities Posts:384 Points:251,660 Joined:Feb 2007	Message Posted: 5/13/2008 10:04:19 AM	Ignore zrcat Report Abuse
	Reality, demand will never and I mean never go down.
EarlyMoose Champion Author Seattle Posts:1,687 Points:659,690 Joined:Dec 2005	Message Posted: 5/13/2008 9:57:23 AM	Ignore EarlyMoose Report Abuse
	same ol' song and dance.
ursidae3 All-Star Author Orlando Posts:779 Points:351,375 Joined:Sep 2005	Message Posted: 5/13/2008 9:57:18 AM	Ignore ursidae3 Report Abuse
	again?
mahenv7 All-Star Author Toronto Posts:974 Points:197,690 Joined:Oct 2004	Message Posted: 5/13/2008 9:57:00 AM	Ignore mahenv7 Report Abuse
	short term
DST43 Champion Author Oklahoma Posts:2,040 Points:354,180 Joined:Jul 2007	Message Posted: 5/13/2008 9:53:38 AM	Ignore DST43 Report Abuse
	sure whatever
BMWer Sophomore Author Calgary Posts:204 Points:397,950 Joined:Dec 2003	Message Posted: 5/13/2008 9:52:44 AM	Ignore BMWer Report Abuse
	And oil companies are still making record profits..
nd73 Veteran Author Grand Rapids Posts:338 Points:215,670 Joined:May 2007	Message Posted: 5/13/2008 9:48:57 AM	Ignore nd73 Report Abuse
	Let's review: Crude oil was at $65 a barrel a year ago, it's now at $126. That was said to be due to increased demand in the US, China, and India. But demand is down in the US and China, and waning in India. Retail gas prices were as low as $1.93 a gallon back in January 2007. This morning, Speedway jumped their price to $3.999 across the state of Michigan. So we have doubled the cost of crude, which is less than half the cost factor of the price of a gallon of gasoline, doubled the retail price of gas, while demand is decreasing. Something's not adding up right. And no, it's not "W" or "Dickie Boy". It's Nancy Girl, and Teddy (hiccup) Boy, and our fine senators from Michigan Carl Leaven and Debbie Stab-us-now. Get Congress to allow drilling on American soil and watch those prices drop back to $2.00 a gallon overnight!
GPCPilot Sophomore Author Orange County Posts:150 Points:54,505 Joined:Nov 2007	Message Posted: 5/13/2008 9:48:28 AM	Ignore GPCPilot Report Abuse
	There's no "may" about it here. I "have" cut my demand. Can't afford not to.
McNasties Champion Author Wisconsin Posts:3,920 Points:749,625 Joined:May 2006	Message Posted: 5/13/2008 9:45:33 AM	Ignore McNasties Report Abuse
	America is standing at the edge of the cliff.
HootyWhoMark Sophomore Author St. Louis Posts:186 Points:38,230 Joined:Mar 2007	Message Posted: 5/13/2008 9:43:22 AM	Ignore HootyWhoMark Report Abuse
	Gas guzzler sales are starting to drop and dealers aren't taking them for that much for a trade in. Folks are finally adjusting and getting wise.
Lizzylou Champion Author Stockton Posts:1,257 Points:840,145 Joined:Oct 2005	Message Posted: 5/13/2008 9:36:53 AM	Ignore Lizzylou Report Abuse
	Exactly--if oil prices are going down why is going going up as much as 10 cents from one day to the next???
don985 Champion Author Denver Posts:1,510 Points:669,815 Joined:Jul 2006	Message Posted: 5/13/2008 9:34:17 AM	Ignore don985 Report Abuse
	Get rid of the speculators.....
mvosevich Champion Author St. Louis Posts:1,093 Points:224,225 Joined:Aug 2004	Message Posted: 5/13/2008 9:29:18 AM	Ignore mvosevich Report Abuse
	Let me get this straight, if China and India use less we pay more?
kaaato Rookie Author Boston Posts:66 Points:81,245 Joined:May 2007	Message Posted: 5/13/2008 9:29:15 AM	Ignore kaaato Report Abuse
	Oil drops and prices continue to rise - sounds right to me.
JoeKR Champion Author New Jersey Posts:1,681 Points:526,575 Joined:Feb 2006	Message Posted: 5/13/2008 9:29:12 AM	Ignore JoeKR Report Abuse
	But tomorrow the speculators will find another reason to drive the price and it won't stop until they've destroyed themselves along with the world economy or their pursuits are outlawed.
Gas_Buzzer Champion Author South Carolina Posts:6,220 Points:1,061,945 Joined:Sep 2005	Message Posted: 5/13/2008 9:29:05 AM	Ignore Gas_Buzzer Report Abuse
	Up $10 and down 3 cents. There is a constant upwards spiral.
lleddirj All-Star Author Michigan Posts:815 Points:560,525 Joined:May 2005	Message Posted: 5/13/2008 9:28:12 AM	Ignore lleddirj Report Abuse
	yeah, right & I've got a bridge for sale.
kanmandoo All-Star Author Detroit Posts:944 Points:862,310 Joined:Jun 2005	Message Posted: 5/13/2008 9:27:12 AM	Ignore kanmandoo Report Abuse
	I never thought of china in the market.
NavyEOD Champion Author Los Angeles Posts:1,731 Points:385,960 Joined:Jul 2007	Message Posted: 5/13/2008 9:26:53 AM	Ignore NavyEOD Report Abuse
	In the U.S. demand is down.
ariccougar Sophomore Author Utah Posts:106 Points:12,395 Joined:Jun 2007	Message Posted: 5/13/2008 9:26:01 AM	Ignore ariccougar Report Abuse
	Bloomberg is out in left field here. There is no reason to believe that either China or India will just stop and say.. we are done get gas, or cutting back and stunting our own growth. Ridiculous. The premise of this article is invalid. Furthermore, so what if demand drops... the arabs will just cut supply to keep the prices high where they can continue to steal the most of our money. In fact, they may even take advantage of that to take MORE of our money by not lowering but raising for a stupid reason such as: "unrest of some 3rd world country". They've done it before. [Edited by: ariccougar at 5/13/2008 10:26:16 AM EST]
OKRifle Champion Author Oklahoma City Posts:1,011 Points:201,590 Joined:Oct 2007	Message Posted: 5/13/2008 9:24:44 AM	Ignore OKRifle Report Abuse
	Can we surcharge Speculators? A windfall surcharge should apply!
spunky4443 All-Star Author Washington Posts:931 Points:412,380 Joined:May 2005	Message Posted: 5/13/2008 9:24:36 AM	Ignore spunky4443 Report Abuse
	Well Gas Stations, gotta be hurting with the high cost of Fuel.
laddyboy62 Champion Author Riverside Posts:1,350 Points:948,885 Joined:Mar 2005	Message Posted: 5/13/2008 9:22:12 AM	Ignore laddyboy62 Report Abuse
	make me laugh....DROPS... don't think so...
Brockvillian Veteran Author Ontario Posts:437 Points:277,245 Joined:May 2007	Message Posted: 5/13/2008 9:19:16 AM	Ignore Brockvillian Report Abuse
	Ooouu, Damn Speculators! They make me angry.
zuke519 Rookie Author Georgia Posts:45 Points:11,075 Joined:Apr 2008	Message Posted: 5/13/2008 9:17:06 AM	Ignore zuke519 Report Abuse
	What's this? The rest of the world can't afford gas either? Even with a weak dollar making it cheaper for them? Sweet...imagine what would happen if the dollar were actually stronger...even less world demand? One can only hope...
1warddune Rookie Author Utah Posts:51 Points:75,135 Joined:Apr 2005	Message Posted: 5/13/2008 9:13:38 AM	Ignore 1warddune Report Abuse
	Between Cyclones and Earthquakes that are killing 100,000 of people, I soon think that the price of oil will be one of the least of our worries.
marbljk Sophomore Author Alabama Posts:108 Points:977,590 Joined:May 2004	Message Posted: 5/13/2008 9:13:10 AM	Ignore marbljk Report Abuse
	I don't believe it will last.
rod1965 All-Star Author Portland Posts:501 Points:72,200 Joined:Jul 2007	Message Posted: 5/13/2008 9:11:48 AM	Ignore rod1965 Report Abuse
	What oil dynamic? Since when did what China and India influence what the price of oil will be in the future.
jimmc2990 Rookie Author Boston Posts:71 Points:15,150 Joined:Aug 2005	Message Posted: 5/13/2008 9:11:22 AM	Ignore jimmc2990 Report Abuse
	speculators are driving this, and once again there is no incentive for our elected officials, bought and sold as they are by big oil, to do anything.
FizedNH Champion Author New Hampshire Posts:1,072 Points:204,230 Joined:Nov 2007	Message Posted: 5/13/2008 9:09:44 AM	Ignore FizedNH Report Abuse
	Oh...
Chazzer Champion Author Nevada Posts:7,855 Points:1,686,165 Joined:May 2002	Message Posted: 5/13/2008 9:08:16 AM	Ignore Chazzer Report Abuse
	Perhaps ... it may!!??
LukeIN All-Star Author Indianapolis Posts:869 Points:165,735 Joined:Nov 2007	Message Posted: 5/13/2008 9:07:52 AM	Ignore LukeIN Report Abuse
	So if demand is down you would think prices would go down as well! but just this morning gas hit 3.95 here in Indianapolis, IN. new record! its all the malnipulation of the market and speculators..!!
Mooseman1 Champion Author Manitoba Posts:1,795 Points:264,865 Joined:Jul 2007	Message Posted: 5/13/2008 9:07:51 AM	Ignore Mooseman1 Report Abuse
	It remains to be seen. I don't have a lot of confidence in any oil company at this point. The majority of the North American population feels the same way.
EnderNY Champion Author Dallas Posts:1,507 Points:292,055 Joined:Jun 2005	Message Posted: 5/13/2008 9:07:38 AM	Ignore EnderNY Report Abuse
	bicycler, Both local and foreign factors affect the gas prices (and greed is one of the local factors) The only variable we control is our spending, consumption, and waste. Reuse, recycle. We have to complain, to our congresspeople, local authorities, etc. But more important, we need to convince not only ourselves but also our family, neighbors, etc.
archetypical Champion Author St. Louis Posts:1,894 Points:292,250 Joined:May 2007	Message Posted: 5/13/2008 9:04:04 AM	Ignore archetypical Report Abuse
	The only thing that will really halt the unwarranted increase in oil prices will be when the market bottoms out. Only then will the folks who raped the credit industry and then the housing industry leave, once they have completed raping the oil/gas/energy markets. The question is, will there be anything left for them to ruin next?
stoopsy All-Star Author Columbus Posts:900 Points:201,975 Joined:Jun 2004	Message Posted: 5/13/2008 9:00:51 AM	Ignore stoopsy Report Abuse
	may?????????
tomok Champion Author Portland Posts:8,680 Points:674,635 Joined:Aug 2006	Message Posted: 5/13/2008 8:59:29 AM	Ignore tomok Report Abuse
	High prices have already cut demand. If demand is down - then why are the high gasoline prices here? OMG!
bicycler Champion Author Ontario Posts:5,950 Points:1,075,845 Joined:May 2005	Message Posted: 5/13/2008 8:58:19 AM	Ignore bicycler Report Abuse
	Once again we see China and India blamed for high oil prices,but if they are the only ones blamed why are the oilbarons profits still at record levels? Are we being hoodwinked into looking away from a local evil to criticize a far eastern peoples trying to catch up with our standard of living?
us4usa Sophomore Author Missouri Posts:198 Points:8,510 Joined:May 2008	Message Posted: 5/13/2008 8:56:22 AM	Ignore us4usa Report Abuse
	``It's the tail-end of a speculative bubble,'' I wonder what speculator (sucker) got caught holding the $126.40 barrel. Wait I think I just heard a popping sound coming from the east.
mplato Champion Author Columbia Posts:1,079 Points:381,895 Joined:Jun 2004	Message Posted: 5/13/2008 8:55:35 AM	Ignore mplato Report Abuse
	it has already been made public in the press ..... its going to $150 .... if the press has anything to do with it. several analyst on CNBC comment on the fact that oil will be in the $75-$80 range by September
MYLTLDSL Rookie Author Utah Posts:39 Points:335,595 Joined:Nov 2006	Message Posted: 5/13/2008 8:52:40 AM	Ignore MYLTLDSL Report Abuse
	Some one needs to give us a better definition of 'a decline'
radrunner All-Star Author Toronto Posts:688 Points:1,011,535 Joined:Apr 2004	Message Posted: 5/13/2008 8:51:29 AM	Ignore radrunner Report Abuse
	good
scrounger Champion Author Vancouver Posts:6,064 Points:1,643,320 Joined:Mar 2003	Message Posted: 5/13/2008 8:50:45 AM	Ignore scrounger Report Abuse
	and it will come back with a vengance
DragonMom Veteran Author Detroit Posts:381 Points:117,940 Joined:Jan 2008	Message Posted: 5/13/2008 8:46:33 AM	Ignore DragonMom Report Abuse
	Buy American products and make the dollar strong again.