U.S. oil just tumbled below $100 a barrel — What that says about recession fears and tight crude sup

[libertybele]

U.S. oil just tumbled below $100 a barrel — What that says about recession fears and tight crude supplies

Concerns about a recession and a drop in energy demand led to a drop in U.S. benchmark West Texas Intermediate crude-oil prices below the $100-a-barrel mark on Tuesday for the first time in months.

That’s contributed to talk of a potential “buying opportunity” for traders, even as some analysts expect further price declines.

“Massive speculation on demand destruction story” led to Tuesday’s “spectacular decline,” Manish Raj, chief financial officer at Velandera Energy Partners, told MarketWatch.

The price drop was “inevitable as the market rebalances after fears of sanctions give way to the realities of Russian sales to new buyers in Asia, and the impact of high prices on demand and the economy become increasingly apparent,” said Michael Lynch, president at Strategic Energy & Economic Research.

Even so, he doesn’t expect to see WTI prices below $90 in the next few months — “unless supply proves strong from Libya, Iran and/or Venezuela, which is possible but there’s little prospect of upwards pressure on prices any time soon.”...........

https://www.marketwatch.com/story/recession-worries-pull-u-s-oil-prices-below-100-but-bleak-supply-picture-suggests-a-bargain-11657048853?mod=home-page

[LMAO]

Gas is 4.42 here. Down from a high of 4.89

[libertybele]

Gas is 4.42 here. Down from a high of 4.89

We saw a slight drop around here as well, but certainly nothing to cheer about.  The price of gas under Trump when he left office was around $2.50/gal.

https://www.newsweek.com/americans-are-paying-144-million-more-gas-per-day-under-biden-under-trump-1638605

[Elderberry]

Got gas today for 4.09.

[libertybele]

Got gas today for 4.09.

Such a bargain. 

[EdinVA]

Drove by WAWA on my way to MD to take my grandson home and gas at WAWA was $4.55..... passed by again on the way home and gas was $4.97... just about an hour has passed..

[Wingnut]

We are getting close to under $4 today.  The economy is heading to the biden bidet

[Smokin Joe]

It is an election year. Whatever influence it can exert, strings it can pull, coercion it can muster, the Dems will try to find a way to crash oil prices or lessen the impact of their policies, so we can all be grateful that gas is only 2.3X as expensive, beef is off the frigging charts, and peaches are only $7/lb (recently observed price in a grocery store).

I can only hope the real, live, voters have longer memories, because a significant fraction of the Democrat electorate does not buy gas or groceries (because either they do not exist or they are dead).

[Free Vulcan]

Oil prices are taking their toll and causing people to cut back, which bring fears of recession and slowdown of demand.

Profit taking and short selling in the oil market was bound to ensue.

[IsailedawayfromFR]

Such a bargain. 

Everything is relative.

I recall in my youth filling up for 18 cents a gallon.

[catfish1957]

U.S. oil just tumbled below $100 a barrel — What that says about recession fears and tight crude supplies

Concerns about a recession and a drop in energy demand led to a drop in U.S. benchmark West Texas Intermediate crude-oil prices below the $100-a-barrel mark on Tuesday for the first time in months.

That’s contributed to talk of a potential “buying opportunity” for traders, even as some analysts expect further price declines.

“Massive speculation on demand destruction story” led to Tuesday’s “spectacular decline,” Manish Raj, chief financial officer at Velandera Energy Partners, told MarketWatch.

The price drop was “inevitable as the market rebalances after fears of sanctions give way to the realities of Russian sales to new buyers in Asia, and the impact of high prices on demand and the economy become increasingly apparent,” said Michael Lynch, president at Strategic Energy & Economic Research.

Even so, he doesn’t expect to see WTI prices below $90 in the next few months — “unless supply proves strong from Libya, Iran and/or Venezuela, which is possible but there’s little prospect of upwards pressure on prices any time soon.”...........

https://www.marketwatch.com/story/recession-worries-pull-u-s-oil-prices-below-100-but-bleak-supply-picture-suggests-a-bargain-11657048853?mod=home-page

Seeing a steep drop in almost all commodities, including suprisingly Farm Futures.   Usually a precuror of anticpated demand drops, and bad recessions.

[catfish1957]

Everything is relative.

I recall in my youth filling up for 18 cents a gallon.

I can remember 18 cents a gallon, and was paying 28 cents a gallon after getting a car at age 17.  Of course I was making $1.10/hour.

[Idiot]

Seeing a steep drop in almost all commodities, including suprisingly Farm Futures.   Usually a precuror of anticpated demand drops, and bad recessions.

More like depression....

[Free Vulcan]

Seeing a steep drop in almost all commodities, including suprisingly Farm Futures.   Usually a precuror of anticpated demand drops, and bad recessions.

Yeah. While no doubt some is portfolio management as these things are bought and sold together, I think the market is mostly looking farther down the road.

[Free Vulcan]

The equity market is tracking oil fairly close today.

FOMC minutes at 1 pm CST today.

[libertybele]

More like depression....

I think so as well, and IF the GOP takes both the House and the Senate the DEMS will blame the GOP majority for tanking the economy and will give that as a reason to vote DEM in '24  That's how they roll.

[catfish1957]

More like depression....

Fundementals actually should have triggered a '30's type depression back in the '08-'09 timeframe.  Thanks to the punk POTUS Obama, and his self inflicted QE I, QE II, and QE III, (plus complicit RINOS) they enacted a classic kick the can down down the road event.

Now here is where it gets really scary.  We are now at the highest Debt to GDP ratio in the nation's history.  Last time it was this high was World War 2.  But here is the big difference.....   After WW2, we were able to unleadh one of the greatest industrial economies in world history, that allowed us to roar back from the brink of destruction.  This time?  We have no industrial base, if this plays out like we think....    The U.S. will easily be 3rd world status in no time.  Especially if and when the $USD is decoupled as the World's Reference Currency.

I hate to be harbringer of doom and gloom.  But its not really a matter of if, but of when.

On a side note...  Gold is $1736 /oz.   Really didn't expect to ever drop back this low again.

[LMAO]

I think so as well, and IF the GOP takes both the House and the Senate the DEMS will blame the GOP majority for tanking the economy and will give that as a reason to vote DEM in '24  That's how they roll.

They would try that. I remember Sean Hannity and Mark Levin trying to blame the Democrats for the economy crashing in 2008

But it didn’t work then and it wouldn’t work now

Of course, when the Republicans take the House and if they take the Senate and things improve, people might just decide in 2024 they like divided government just like they did in 1996

[Idiot]

Fundementals actually should have triggered a '30's type depression back in the '08-'09 timeframe.  Thanks to the punk POTUS Obama, and his self inflicted QE I, QE II, and QE III, (plus complicit RINOS) they enacted a classic kick the can down down the road event.

Now here is where it gets really scary.  We are now at the highest Debt to GDP ratio in the nation's history.  Last time it was this high was World War 2.  But here is the big difference.....   After WW2, we were able to unleadh one of the greatest industrial economies in world history, that allowed us to roar back from the brink of destruction.  This time?  We have no industrial base, if this plays out like we think....    The U.S. will easily be 3rd world status in no time.  Especially if and when the $USD is decoupled as the World's Reference Currency.

I hate to be harbringer of doom and gloom.  But its not really a matter of if, but of when.

On a side note...  Gold is $1736 /oz.   Really didn't expect to ever drop back this low again.

I just can't understand the metals.  I would have thought gold and silver would be pegging out new highs, since oil was hitting new highs.

[catfish1957]

I just can't understand the metals.  I would have thought gold and silver would be pegging out new highs, since oil was hitting new highs.

As crazy as it sounds, investors still somehow think that $USD's are a flight to safety.  In fact the dollar is way up against almost all other foreign currencies.  That is about the only explanation of why right at this exact moment Gold is $1740/oz.  Silver at $19.17/oz. 

I stocked up on some more Au on the dip today @$1755. 

[Free Vulcan]

I just can't understand the metals.  I would have thought gold and silver would be pegging out new highs, since oil was hitting new highs.

The big concerns buy commodities as a portfolio, and they often move together, especially if crude is the leader.

As @catfish1957 said, they still believe in the dollar. If at some point they don't, precious metals will diverge.

[Elderberry]

Saw gas at 3.99 yesterday afternoon.

[DefiantMassRINO]

The price of gasoline is slowly dropping.  Free competitive market dynamics work when the Government doesn't suffocate them with regulations and mandates.

[GtHawk]

Saw gas at 3.99 yesterday afternoon.

Cheapest gas around me was at Costco this morning and that was 5.699

[mountaineer]

After Biden's incompetent press secretary complained the other day that no one was lowering gas prices, despite the drop in the crude price (thus proving that the real problem is the owners of gas stations), our local Kroger went down some 12 cents a gallon.