Oil prices skid to 2008 low on falling demand

Source: Business Week

Oil prices fell Wednesday, touching their lowest level this year, -- as the government reported a huge spike in crude inventories while giving more evidence of dwindling demand.

Light, sweet crude for November delivery was down $1.23 at $88.83 in afternoon trading on the New York Mercantile Exchange, paring earlier losses after the stock market rose into positive territory after being down most of the day.

Oil prices earlier fell to $86.05, the lowest level since Dec. 6, 2007. Crude has now fallen about 40 percent since surging to an all-time record $147.27 a barrel on July 11.

But Wednesday's losses were limited by growing speculation that the Organization of the Petroleum Exporting Countries could cut output to keep prices from falling too hard. OPEC officials, worried about declining oil revenue, in recent days have urged members of the cartel not to pump too much crude in a bid to keep prices above $100.

Read more: http://www.businessweek.com/ap/financialnews/D93MFNI00.htm

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In related news, the number of Peak Oil posts on DU has also skidded to a 2008 low.

What does one thing have to do with the other?

No one is arguing that market forces don't have some impact on the price. It doesn't change the fact that production capacity has hit a wall and will soon decline if it hasn't already. If supply can't keep pace with demand, that's when peak oil starts to drive prices higher.

Ah, but look at your own headline:

"Oil prices skid to 2008 low on falling demand...

Kind of self-explanatory, isn't it?

It's a tongue-in-cheek observation on human psychology. :evilgrin:

There's less demand for Peak Oil harangues in a climate of falling oil prices. Rather like there's less demand for AGW rallies in the middle of a snowstorm. Not sayin' it's right or wrong, just sayin'.

Meanwhile, who cares why, I'm glad for myself and for others less fortunate than me that oil prices are leveling.

That's what I want to know. Gas prices here are still where they were when oil was around $115 per barrel.

I don't get it.

or something like that, aye? I dunno, but that sounds right... Although, I'm sort of cynical... I'm sure something like that affects the prices to some extent, but I bet we won't see our gas prices get below $3.00 ever again. :(


*wow, I just looked on gasbuddy.com and saw that it's down to $2.70ish in my area... Weird, I could have sworn just the other day when I was debating filling up my tank that gas was about $2.20ish... I need to look around more tomorrow morning before I go to my usual place since I'm pretty much on E... heh...

ahh yeah... closer to my area they are all around $3.20... bastards.