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Oil Drops, But the Energy Market Is Still Wacky

Bloomberg Businessweek -- Oil prices got another push lower this week as talks with Iran over its nuclear program appear to be progressing. For the first time in five years, it looks like the International Atomic Energy Agency will have access to the country’s Parchin military complex, easing concerns about an eventual Iranian supply disruption.

Five months ago the market was terrified about the possibility of war with Iran and the effect this would have on the world’s oil supply. Just to be sure they were ahead of the curve, oil speculators piled into futures contracts like crazy, pricing at the equivalent of a nine-month Iranian supply disruption by early March. Now that the threat seems to be dissipating (and Europe is deteriorating again, further depressing demand), speculators are rushing for the exits,

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Submitted May 24, 2012 By: aservant

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52MPG Champion Author Dayton Posts:7,267 Points:1,742,680 Joined:Apr 2006	Message Posted: May 25, 2012 1:02:27 AM Ignore 52MPG Report Abuse Wacky to say the least.
bluebird1 Champion Author Toronto Posts:15,735 Points:3,108,125 Joined:May 2004	Message Posted: May 24, 2012 4:16:53 PM Ignore bluebird1 Report Abuse Wacky is good term for Oil & gas ...not sure about all energy though. IE. Its funny that when oil is cheap & plentiful that's a reason to cut back refining or when oil drops gas goes up or that any news is spun by big speculators into higher prices until cannot support it anymore - then they all sell short in unison to continue the cycle later. BUT there is no monopolistic trends here according to experts.
condé Champion Author Michigan Posts:3,741 Points:1,813,665 Joined:Oct 2004	Message Posted: May 24, 2012 4:09:37 PM Ignore condé Report Abuse Price is still UP from Tuesdays jump.
fedupMN Champion Author Twin Cities Posts:2,954 Points:573,455 Joined:Mar 2011	Message Posted: May 24, 2012 2:15:08 PM Ignore fedupMN Report Abuse Not a big surprise, big oil controls its own prices and with no competition they can charge whatever they want.
Alfied Champion Author Riverside Posts:7,940 Points:1,756,260 Joined:Jun 2001	Message Posted: May 24, 2012 1:44:50 PM Ignore Alfied Report Abuse Up and down, up and down, makes the world go around.
GatorGuy Champion Author Columbia Posts:2,233 Points:1,207,470 Joined:Jan 2009	Message Posted: May 24, 2012 12:20:44 PM Ignore GatorGuy Report Abuse Since when do gas prices align with oil prices?
hibsaw Champion Author Mississippi Posts:8,042 Points:1,681,965 Joined:Feb 2008	Message Posted: May 24, 2012 12:14:45 PM Ignore hibsaw Report Abuse Well that is all changing today. Crude is up $1.44 as I type.
5Golfer8 Champion Author Tucson Posts:2,143 Points:301,625 Joined:Jun 2011	Message Posted: May 24, 2012 12:04:50 PM Ignore 5Golfer8 Report Abuse If you do not refine it the prices will not drop, or should we all drive these electric cars that only have a 75 mile range per 4 hour charge. That will stop freedom of movement in the United States. Thanks Obama.
ciimike Champion Author Nevada Posts:4,638 Points:1,062,060 Joined:Aug 2005	Message Posted: May 24, 2012 11:54:41 AM Ignore ciimike Report Abuse Sure wish we could reap the benefits of lower crude here in the West Coast.
bvrbill Champion Author Eugene Posts:3,223 Points:518,850 Joined:Jul 2011	Message Posted: May 24, 2012 11:48:01 AM Ignore bvrbill Report Abuse We haven't seen gas or diesel prices drop out West for quite a while.
bobsalwaysmt Champion Author Long Island Posts:4,660 Points:265,815 Joined:Oct 2007	Message Posted: May 24, 2012 11:47:31 AM Ignore bobsalwaysmt Report Abuse Needs to drop significantly.
matthwbar Champion Author Toledo Posts:4,063 Points:1,017,805 Joined:Jun 2007	Message Posted: May 24, 2012 11:47:02 AM Ignore matthwbar Report Abuse Prices make no sense, these days....
lit4caster Sophomore Author Little Rock Posts:100 Points:2,363,535 Joined:Aug 2005	Message Posted: May 24, 2012 11:44:12 AM Ignore lit4caster Report Abuse Oil heading back up today...
Catfish93001 Champion Author Ventura Posts:1,200 Points:247,955 Joined:Jun 2008	Message Posted: May 24, 2012 11:44:02 AM Ignore Catfish93001 Report Abuse Once upon a time in order to trade futures for this stuff you had to be able to actually take delivery, but no longer. So the futures market has become a casino and the real losers are the end-users - you and I.
PTW-Gas Veteran Author Allentown Posts:335 Points:811,540 Joined:Sep 2004	Message Posted: May 24, 2012 11:43:21 AM Ignore PTW-Gas Report Abuse Gas prices are dropping. Must be an election coming up.
viperND Champion Author South Bend Posts:3,310 Points:735,940 Joined:Apr 2011	Message Posted: May 24, 2012 11:43:21 AM Ignore viperND Report Abuse gas $2 yet?
dieselfiendSC Champion Author South Carolina Posts:2,186 Points:846,830 Joined:Nov 2008	Message Posted: May 24, 2012 11:43:16 AM Ignore dieselfiendSC Report Abuse 91Explorer - Amen
91Explorer All-Star Author Dallas Posts:634 Points:1,129,615 Joined:Oct 2009	Message Posted: May 24, 2012 11:42:28 AM Ignore 91Explorer Report Abuse gas prices can't drop far enough nor fast enough for me
Diesel_Ram Champion Author Dallas Posts:6,502 Points:1,518,460 Joined:Jan 2009	Message Posted: May 24, 2012 11:42:08 AM Ignore Diesel_Ram Report Abuse Falling a penny a day at the pump.
greshams Champion Author Cincinnati Posts:2,009 Points:375,650 Joined:Nov 2011	Message Posted: May 24, 2012 11:42:07 AM Ignore greshams Report Abuse price gouging
IMLURCH Champion Author Minnesota Posts:2,184 Points:1,103,180 Joined:Mar 2009	Message Posted: May 24, 2012 11:41:51 AM Ignore IMLURCH Report Abuse BURN speculators BURN!!!!!!!!
BWALL2700 Champion Author Illinois Posts:2,174 Points:195,735 Joined:Apr 2011	Message Posted: May 24, 2012 11:41:38 AM Ignore BWALL2700 Report Abuse It doesn't matter. Gas prices still to high.
honkerman Champion Author San Jose Posts:44,287 Points:2,397,095 Joined:Jul 2004	Message Posted: May 24, 2012 11:39:11 AM Ignore honkerman Report Abuse Prices up like a rocket, down like a feather in a thermal updraft.
cmsense Champion Author Columbus Posts:1,358 Points:165,345 Joined:Jan 2012	Message Posted: May 24, 2012 11:38:32 AM Ignore cmsense Report Abuse Only wacky when manipulation steps in.
ramshot412 Champion Author Riverside Posts:20,153 Points:2,466,465 Joined:Apr 2004	Message Posted: May 24, 2012 11:38:02 AM Ignore ramshot412 Report Abuse "We are wacky for buying gas." That's the ticket, "It's all our fault"
TRAIN RIDER Champion Author San Bernardino Posts:9,082 Points:2,757,820 Joined:Oct 2004	Message Posted: May 24, 2012 11:37:57 AM Ignore TRAIN RIDER Report Abuse The oil companies will do what they can to keep prices up.
GGAlbo Champion Author Detroit Posts:2,244 Points:1,885,345 Joined:Sep 2006	Message Posted: May 24, 2012 11:37:51 AM Ignore GGAlbo Report Abuse It did not drop to below $40 a barrel yet!
jward069 Sophomore Author Mississippi Posts:167 Points:636,165 Joined:Aug 2008	Message Posted: May 24, 2012 11:32:58 AM Ignore jward069 Report Abuse You got that right.
RichFWA Champion Author Tacoma Posts:1,175 Points:289,845 Joined:Mar 2011	Message Posted: May 24, 2012 11:32:54 AM Ignore RichFWA Report Abuse Oil drops but the people in Washington state are still being screwed!
s6sputnik Champion Author Austin Posts:6,222 Points:1,308,130 Joined:Jun 2007	Message Posted: May 24, 2012 11:31:37 AM Ignore s6sputnik Report Abuse Yes!
WinderGuy Champion Author Georgia Posts:2,869 Points:932,605 Joined:Mar 2008	Message Posted: May 24, 2012 11:31:05 AM Ignore WinderGuy Report Abuse Ok
CheckitoutGuy Champion Author San Diego Posts:1,311 Points:769,590 Joined:Mar 2008	Message Posted: May 24, 2012 11:30:32 AM Ignore CheckitoutGuy Report Abuse Like the weather gas prices are way to hard to figure out too many variables, but they are begining to get a handle on the weather - maybe one day the sky will quit falling wirh every price hike and we will be able to have a way to know what we will pay at the pump - it is one of those things I can not control but I get to worry about as much as I want to.
straz Champion Author Pennsylvania Posts:1,708 Points:540,385 Joined:Jan 2007	Message Posted: May 24, 2012 11:29:21 AM Ignore straz Report Abuse I would still like to see the price of wheat shipped overseas tied to the price of gas. We'll send 10 bu. of wheat for a bbl of oil. Not gonna happen
Clarktj Sophomore Author Kentucky Posts:201 Points:11,700 Joined:Nov 2011	Message Posted: May 24, 2012 11:29:15 AM Ignore Clarktj Report Abuse ok
DJRIO Champion Author Miami Posts:8,046 Points:1,425,585 Joined:Jan 2008	Message Posted: May 24, 2012 11:28:58 AM Ignore DJRIO Report Abuse next week we will know where oil price we go.
rodzilla123 Champion Author San Diego Posts:4,400 Points:1,034,365 Joined:Jul 2008	Message Posted: May 24, 2012 11:28:13 AM Ignore rodzilla123 Report Abuse Oil Markets are gong to be Wacky for a long time, especially when Governments are involved as much as they are.
Digger52 Champion Author Chicago Posts:2,407 Points:848,935 Joined:Aug 2008	Message Posted: May 24, 2012 11:27:19 AM Ignore Digger52 Report Abuse Drop in oil prices does not mean drop in gas prices any more. . .
Bigtex09 Champion Author Dallas Posts:4,288 Points:1,159,285 Joined:Oct 2009	Message Posted: May 24, 2012 11:27:00 AM Ignore Bigtex09 Report Abuse pure BS!
Bus936 Champion Author Lexington Posts:16,444 Points:3,220,005 Joined:May 2004	Message Posted: May 24, 2012 11:25:39 AM Ignore Bus936 Report Abuse When oil comes down and pump prices stay up continuously, this means someone is stealing from the consumers, and guess who that someone is? The gas stations, thats who. They are buying the gas for less but keep charging higher prices for it, and this is just plain stealing anyway you look at it.
AriesMMD Champion Author Sacramento Posts:1,491 Points:412,215 Joined:Dec 2011	Message Posted: May 24, 2012 11:25:36 AM Ignore AriesMMD Report Abuse Again it goes back to supply and demand. There is more demand for oil products than there is for natural gas.
q2 Champion Author Alberta Posts:2,034 Points:380,095 Joined:Nov 2008	Message Posted: May 24, 2012 11:23:45 AM Ignore q2 Report Abuse greed prevails
stevekr Champion Author Sacramento Posts:2,353 Points:690,030 Joined:Jul 2008	Message Posted: May 24, 2012 11:23:31 AM Ignore stevekr Report Abuse Drill Here! Drill Now! Pay Less!
Kaiyne Champion Author Chicago Posts:2,339 Points:472,715 Joined:Feb 2011	Message Posted: May 24, 2012 11:20:14 AM Ignore Kaiyne Report Abuse We are wacky for buying gas.
KhelbenArunson Champion Author Michigan Posts:4,446 Points:717,865 Joined:Apr 2008	Message Posted: May 24, 2012 11:17:49 AM Ignore KhelbenArunson Report Abuse In other words we are still getting screwed.
Maintroll Champion Author Lexington Posts:8,634 Points:1,703,135 Joined:Aug 2008	Message Posted: May 24, 2012 11:15:03 AM Ignore Maintroll Report Abuse Oil drops and the oil industry is still legally stealing from all consumers at the pumps.
Bhmf4 Champion Author Alabama Posts:2,014 Points:1,233,770 Joined:Oct 2008	Message Posted: May 24, 2012 11:14:56 AM Ignore Bhmf4 Report Abuse With Iran driving the bus, we are all in trouble. Hang on to your economy, it will be a bumpy ride.
EmperorsFinest Champion Author Chicago Posts:1,564 Points:340,870 Joined:Jul 2011	Message Posted: May 24, 2012 11:14:54 AM Ignore EmperorsFinest Report Abuse We can not get a break.
stickyvalves Champion Author Iowa Posts:5,275 Points:1,557,720 Joined:Oct 2005	Message Posted: May 24, 2012 11:13:41 AM Ignore stickyvalves Report Abuse It's a roller coaster. Sit down and hang on.
umitb Champion Author Indianapolis Posts:3,681 Points:844,415 Joined:Apr 2010	Message Posted: May 24, 2012 11:12:43 AM Ignore umitb Report Abuse ok
bbthegun Champion Author San Diego Posts:5,983 Points:1,681,190 Joined:Sep 2006	Message Posted: May 24, 2012 11:12:38 AM Ignore bbthegun Report Abuse Ok then...can west coast prices start dropping then! Look at the US Gas Heat Map. The whole frickin left coast is blood red!!