U.S. Stocks Get a Boost from $5 Drop in Oil Prices

Posted by Patrick O'Connor on 7/16/08 10:59 am

U.S. crude oil inventory data for the week ending July 11 surprised the market when reports indicated that supply jumped by 3 million barrels instead of dropping the 2.2 million barrels expected by analysts.  The better-than-expected result was due to total U.S. petroleum demand falling.  Equally encouraging, gasoline inventories jumped 2.4 million barrels, much better than expectations for a slight decline.  Read More.

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Posted by aWriter on 7/23/08 7:40 pm

Sure. As soon as the talk about opening up drilling sounds serious, the speculators lower their demand for oil futures. Voila. Oil prices drop. Gasoline at the least expensive stations here have dropped from $4.07 to $3.93 ]per gallon in a week. All this is contrary to the pols and their minions at the Associated Press who continually tell us that drilling for more oil won’t “ease the pain now.” They were wrong as usual. Of course, other factors such as decreasing demand by motorists for gasoline helped but the major impetus to lower oil and gasoline prices came from the more serious talk about drilling now. And we should start to drill immediately offshore and in ANWR. If that happens, gasoline prices will drop below $2.00 per gallon.

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