TeakDoor.com - The Thailand Forum - View Single Post - Oil Tumbles as Signs of Slowing Economy Spur Commodity Selling

01-08-2008, 04:14 AM

...(unless you are called Butterfly and believe that wild-eyed, crazy-hair speculators are to blame):

Oil Falls More Than $2 as Fuel Demand Drops to Three-Year Low

By Mark Shenk

July 31 (Bloomberg) -- Crude oil fell more than $2 a barrel, capping the biggest one-month decline since December 2004, as a slowing U.S. economy caused fuel consumption to weaken to the lowest in three years.

The economy shrank at the end of 2007 and grew less than forecast in this year's second quarter, curbing fuel demand. Consumption averaged 20.7 million barrels a day in the past 12 months, the lowest for the period since 2004-2005, according to U.S. Energy Department data.

``Expectations about the economy have deteriorated, which is weighing on the oil market,'' said Brad Samples, a commodity analyst for Summit Energy Inc. in Louisville, Kentucky. ``With demand so poor, we have to re-examine price expectations. The market will be guided by the economic outlook here, in Europe and in the emerging markets.''

Note:

I have put the most relevant bits in bold to enable those unable (or unwilling) to understand these matters (pay attention Messers Butterfly and Britmaverick) to see them more clearly.

01-08-2008, 04:14 AM	#256 (permalink)
bkkandrew Guest Posts: n/a	Which leads directly to reduced demand... ...(unless you are called Butterfly and believe that wild-eyed, crazy-hair speculators are to blame): Oil Falls More Than $2 as Fuel Demand Drops to Three-Year Low By Mark Shenk July 31 (Bloomberg) -- Crude oil fell more than $2 a barrel, capping the biggest one-month decline since December 2004, as a slowing U.S. economy caused fuel consumption to weaken to the lowest in three years. The economy shrank at the end of 2007 and grew less than forecast in this year's second quarter, curbing fuel demand. Consumption averaged 20.7 million barrels a day in the past 12 months, the lowest for the period since 2004-2005, according to U.S. Energy Department data. ``Expectations about the economy have deteriorated, which is weighing on the oil market,'' said Brad Samples, a commodity analyst for Summit Energy Inc. in Louisville, Kentucky. ``With demand so poor, we have to re-examine price expectations. The market will be guided by the economic outlook here, in Europe and in the emerging markets.'' Note: I have put the most relevant bits in bold to enable those unable (or unwilling) to understand these matters (pay attention Messers Butterfly and Britmaverick) to see them more clearly.