Oil Prices Dropping?

I heard it was due to a reduced demand.

Bernanke said the oil costs and economy was and will continue to cause a reduction in usage, and that popped their bubble a bit

When will we see the reduction at the pump ? Is the real question.

They're damn close to killing the golden goose. Saw the same thing with ENRON during the Calif. "energy crisis" only they couldn't keep their hands from the cookie jar & it blew up in their face. Sooner or later you will price your customers out of the market & then profits go away. Same old song & dance.

I'll bet the Republicans have something to do with this!!

Consumer prices jump 1.1 percent in June

By MARTIN CRUTSINGER, AP Economics Writer 39 minutes ago

WASHINGTON - Consumer prices shot up in June at the second fastest pace in 26 years with two-thirds of the surge blamed on soaring energy prices.

The Labor Department reported that consumer prices jumped 1.1 percent last month, much worse than had been expected. Energy prices rocketed upward by 6.6 percent, reflecting big gains for gasoline, home heating oil and natural gas.

The big rise in prices cut deeply into consumers' earning power with average weekly wages, after adjusting for inflation, dropping by 0.9 percent in June, the biggest monthly decline since 1984.

The 1.1 percent June price increase was the second largest monthly advance in the past 26 years, surpassed only by a 1.3 percent gain in September 2005 from a jolt to energy costs after Hurricane Katrina.

Separately, the Federal Reserve reported that industrial output rose 0.5 percent in June, the fastest pace in 11 months. The increase, the highest since a 0.6 percent gain in July of last year, reflected an end to an automotive production strike rather than any widespread strength in the economy.

The report on retail inflation followed similarly grim news on Tuesday that wholesale prices had shot up by 1.8 percent in June.

The news on inflation kept a lid on stock prices, which were trading mixed after one of the nation's largest banks, Wells Fargo, announced it would raise its dividend.

Federal Reserve Chairman Ben Bernanke told Congress on Tuesday that the Fed was concerned about the threats posed by rising inflation.

Bernanke said that the "upside risks to the inflation outlook have intensified lately, as the rising prices of energy and some other commodities have led to a sharp pickup in inflation and some measures of inflation expectations have moved higher."

Bernanke's comments underscored the bind the central bank is in, caught between a faltering economy that is struggling to overcome a prolonged housing slump and a severe credit squeeze, and the risk that inflation would move higher.

Many analysts believe that the central bank is likely to leave interest rates unchanged for the rest of the year out of concern that any tightening of credit policy could send the economy into an even worse tailspin.

Over the past 12 months, consumer inflation is up by 5 percent, the largest year-over-year gain since a similar 5 percent rise in May 1991.

Food prices also showed a big increase in June, rising by 0.7 percent, more than double the 0.3 percent increase of May. Vegetable prices shot up by 6.1 percent, the biggest increase in nearly three years.

Core inflation, which excludes energy and food, showed rising pressures too with an increase of 0.3 percent in June, up from a 0.2 percent gain in May and the biggest one-month rise since January.

This increase reflected a 4.5 percent jump in airline ticket prices, the biggest one-month rise for airline fares since March 2000.

Also consider that dealerships cannot get Hybrids fast enough and can sell them at a premium, people can't hardly give away their pig SUV's and trucks, small cars are selling like crazy and on waiting lists...people have gotten the message

The days of pissing away gas is coming to a close, at least for the time being

Because he said the economy was doing fine?

demand is down by about 1 to 2 million BPD overall from what I hear.

Asia had significant cuts and the US cut out about 1/2 MBPD.

Price of gas HERE has been falling for the last two weeks...

Not near my house, it went for $4.00 two weeks ago to $4.11 yesterday

Been riding my bicycle to work, 4 miles each way. It takes me 14 minutes, not much longer than driving.

Its the highest it has ever been here, $ 4.39

Not here either . It rose 13 cents in the last week .

Unexpectedly? How does this happen?

http://news.yahoo.com/s/ap/20080716/ap_on_bi_ge/oil_prices

NEW YORK - Oil prices are tumbling, extending a massive sell-off the previous day, after of the government reported that U.S. crude supplies unexpectedly jumped last week.
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Light, sweet crude for August delivery is down $6.44 at $132.30 a barrel in morning trading on the New York Mercantile Exchange.

The Energy Information Administration reported U.S. crude oil supplies jumped by 3 million barrels last week. That is the opposite of the 3 million barrel decline analysts surveyed by energy research firm Platts expected.

Gasoline supplies also jumped unexpectedly.

I heard they're hiding him in a cave under the rose garden.

Well here in San Diego it spiked around 4.50-4.60 gal reg
Now it's down to 4.31 in some areas
Obviously it's different thru-out the US...
I'd love to see it back down to 4.11 gal
It's all relative...

I think we should go back to magic carpets then we wouldn't need any of this oil.

They dropped for a day or a week but then will continue their rise. I've already had to cancel cable and just watch free internet television. Luckily a few sites like http://www.digitalfuntown.com/homepage.php are pretty good.

Yeah, no need to increase supply, gas should go down to $3.50 with big news like this!