Oil Prices Collapse to Year Low

Source: TheStreet

Oil prices slumped to a year low Monday as domestic economic growth concerns triggered by a historic downgrade of U.S. credit ratings by Standard & Poor's stymied buying interest.

The September Brent crude oil contract was tumbling $3.48 to $105.89 a barrel, while West Texas Intermediate (WTI) light sweet crude oil for September delivery was down $3.19 to $83.69. The WTI contract had hit a year-low of $82.52 earlier as the U.S. dollar index advanced 0.4% to $74.89.

"After Friday night's U.S. credit rating downgrade by S&P, financial markets today are receiving an absolute drubbing, as the removal of AAA status from the world's largest economy highlights the extent of the global economic frailties that exist," said Summit Energy analyst Matt Smith. "Given the relationship between economic growth and oil prices, WTI crude is correspondingly being walloped this morning, down to a level not seen since last November."

Beyond the U.S., economic frailties also continue to haunt the European markets, with the European Central Bank now purchasing Spanish and Italian government bonds in efforts to prevent a financial crisis from spreading to the Eurozone's third and fourth largest economies.

<more>

Read more: http://www.thestreet.com/story/11213372/1/oil-prices-collapse-to-year-low.html

Gas was 4.06 here in the south suburbs of Chicago, now its down to 3.95, so our prices have actually fallen a few cents.

at the pump. but seriously.... my husband was watching the asian and other markets after i told him about the futures thing i had seen posted here. i don't know much about that stuff, but it seems pretty bad. I hope those jerks who thought it would be nice to throw a damned temper tantrum are happy. i bet they are not owning this.... they are going to go around trying to blame obama... well they friggin own this those jerks. they wanted this... and we are all going to get it thanks to them.

news anymore. She says the word "tea party" sends shrills up her spine.

:toast:

I was lucky enough to pull right up to a pump and put $30 in. I still don't know why they did it. Back to $3.75 today.

unless it looks like we're going for "Depression #2", then it will be 50 cents a gallon!

Doubtful

n/t

n/t

It was around $4 at the pump yesterday.

it means that in many states gas should drop to ~$3 a gallon next month