Oil prices fell below $106 a barrel Tuesday in Asia - $10 below its close Friday before the Labor Day weekend - as investors shifted their focus to slowing global demand after worries about Hurricane Gustav subsided.
Light, sweet crude for October delivery was trading at $106.03 a barrel in electronic trading on the New York Mercantile Exchange midafternoon in Singapore, and at one point dropped as low as $105.46.
On Monday, when U.S. trading was closed for Labor Day, the contract had plunged $4.34 to $111.12 a barrel in late electronic trading. On Friday, the contract settled at $115.46 a barrel.
Traders were relieved that Gustav weakened as it approached the offshore oil rigs and Louisiana refineries, and appeared to have caused less damage than expected in New Orleans and surrounding areas.
But they quickly turned their attention to slowing global economic growth, speculating that will dampen demand for crude oil, even in developing countries such as China and India.
"The market continues to be weighed down by worries of a global economic downturn and slowing oil demand in developing markets," said Victor Shum, an energy analyst with consultancy Purvin & Gertz in Singapore. "Action by OPEC and supply side concerns should put a backstop to any sharp price drop."
That's right. They want to "defend" the $100 level?? Remember just a few short months ago when they said that oil prices should be around $70 a barrel and how it was all America's fault?? Now, they want to think about restricting supplies to keep the price high and bleed you dry.
DON'T LET THEM DO IT.
Buy smaller, more fuel efficient cars. Buy the new plug-in hybrids that can go without using gas AT ALL. Telecommute. Don't drive everywhere.
These people are the same ones who throw money at terrorist groups like Hezbollah and Hamas, and don't think twice about bleeding you dry at the pump. Not likely to happen, but if we all bought the Chevy Volt and used it for commuting, the price of oil would sink to almost nothing. They wouldn't be able to GIVE it away.
We have plenty of oil reserves here in this country to sustain ourselves while electric and alternative fuel vehicles mature and come down in price. Let's put that money towards creating American jobs and keeping the vast amount of wealth that we've built, here in America and not in the pockets of terrorist supporters and hostile nations.
And to my liberal/Democrat readers, you should be doing more then I am suggesting. Remember, the war in Iraq is about oil right? Well if you honestly believe that, then you wouldn't have a problem cutting oil consumption down to almost zero right? That would keep money out of the "military industrial complex" and "Big Oil" right? Right?
Travis
travis@rightwinglunatic.com
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