San Diego Housing Market News and Analysis
Why is oil down?
User Forum Topic
Submitted by powayseller on September 21, 2006 - 12:04pm
Why did oil prices drop so much?
The media says it was due to increasing inventory. They don't say anything about demand going down, other than we are past the summer driving season. But I doubt that would make our demand fall enough to see such big oil price drops.
OPEC was pumping at capacity for many months, and supposedly we needed every barrel they could pump, so how was there an opportunity to store up this excess inventory?
Do you think the US had some traders bid up the price of oil for a few months, just to bring them down in time for the mid-term elections? People are not realizing prices are higher now than they were at the beginning of the year. They are just happy to see a price drop, so the game worked.
So my questions:
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