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Oil prices appear to be tanking....

By Terry Kuehn

Real Estate Agent with Family Real Estate Services, Inc.

September 14, 2008 01:16 PM

"The oil market is selling off because the early indications show Ike didn't do as much damage as feared," said Chris Jarvis, senior analyst at Caprock Risk Management."

In fact, oil was as low as $98.46 a barrel today -- the lowest since February 26th -- during a special trading session set up today (Sunday) to deal with the mess that's currently got Wall Street all in shambles.

http://www.reuters.com/article/hotStocksNews/idUSSIN4333720080914

I really don't know quite what to make of that statement by Jarvis. Maybe we could read into it that if Hurricane Ike never existed, maybe oil would be lower than that $98.

Funny thing, maybe, what with all the turmoil currently affecting world economies. The media has deluged the nation with its hyping about a real estate bubble. Maybe it's time to start hyping an oil bubble and start broadcasting about all the oil-price speculators that are maybe beginning to eat crow.

Think about it: oil peaked at $147 in mid-July. Now it's about $98. That equates to a 33% drop.

On a side note, Lehman Brothers, Merrill Lynch, AIG and Washington Mutual are in huge piles of doo-doo.

Best regards.......

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Scott Smith

Coldwell Banker Residential Brokerage - Gloucester, MA

Gloucester & Rockport, Massachusetts

It would be nice if gas prices dropped 33%. That would make gas about $2.85 per gallon. We are so being used.

Sep 14, 2008 02:08 PM

Lanre-"THE REAL ESTATE FARMER" Folayan

Samson Properties - Bowie, MD

I don't make promises.I deliver results.SOLD HOMES

Terry it would be nice to see gas prices drop. Thank God Ike didn't do much damage as we thought. I want to see gas at under $2.00 again. That's one of the many things that I will like to see before 2008 is over.

Sep 14, 2008 05:54 PM

John Guiney

Keller Williams Realty - Quincy, MA

e-PRO, CBR

Terry - Oil currently at 95.50 per barrel is still far to high. Particularly because we are losing jobs and banking institutions at an unheard of rate. Even the house of Saud said that oil should be between 60 and 80 dollars a barrel

Sep 15, 2008 02:03 AM

Simon Conway

Orlando Area Real Estate Services - Orlando, FL

John is correct is saying that the price is still higgh, but not to look at the 33% drop is also wrong. The major difference between the $147 price and today is that both US Presidential candidates have now said they would drill in one form or another. Imagine how much cheaper it will get when the drills start working!

Sep 15, 2008 02:16 AM

Mike Saunders

Retired - Athens, GA

I am truly afraid that the price drop will make people complacent and willing to cut politicians some slack on drilling. Schumer has already declared it a non-issue and does not need to be addressed before the election. Everyone needs to remain focused and not let those short-sighted bureaucrats off the hook just because we got a few cents relief.

Sep 15, 2008 03:46 AM

Terry Kuehn

Family Real Estate Services, Inc. - Tacoma, WA

Self-Directed Roth IRA Associate

Scott, Lanre, John, Simon, and Mike, thank you for your comments......

In many ways, environmentalists have the United States behind the eight ball regarding certain aspects of ‘modern' technology, primarily as it relates to disturbing Mother Nature. I will say, though, that over the past quarter century, man HAS realized that many things that were done in the past were harmful to momma's core. And I suppose that if it weren't for all the EPA stuff coming out of Washington maybe man would be continuing with self demise. With that being said, I can only assume, also, that many of the EPA propagandists have suffered at the pump as well as non-EPA enthusiasts. Surprisingly enough, though, it is astonishing as to just how much NEW oil is being discovered in areas OTHER than the United States.....

As I write this, oil is currently at $94 a barrel and heading south. Regarding the Saudi comments about $60 oil, it is plainly clear that the Saudis appear not to be greedy as some of the world's other players appear to be; and on top of that, Wall Street has played a major part in the pricing of oil. Now, what with all the happenings within the financial community, I don't have a breath of compassion for Lehman Brothers or any of the other major money players, for it is on their doorsteps that I lay the major blame for this country's financial problems. (Maybe the EPA should get involved in the money business.)

In conclusion, I would like to reiterate my comment regarding the media and its bubble reporting: I think it would be fantastic if the media would begin attacking the oil industry bubble as vividly as it has attacked the real estate industry....... If it did, I am sure that oil prices would tank, big time!

Sep 15, 2008 05:51 AM

Amanda McCumber

DRM Residential Properties, Inc. - Cypress, TX

ABR,CRS,AHWD,CHMS,SFR,SMP

It's funny that as soon as the President issued the order to remove the ban on offshore drilling the price began to drop. Can you imagine if Congress would actually do something and allow drilling as well. BO wants to say that drilling will not have any effect on prices for 10 years and yet the speculation of the possibility of drilling has already had a noticeable affect. I say "Drill baby Drill".

Sep 16, 2008 10:17 AM

Amanda, thank you for commenting.....

BO is exactly that! BO......

Sep 16, 2008 01:11 PM

Mike Russell

Mike Russell Real Estate Group - Overland Park, KS

Overland Park Kansas Real Estate

so why has gas prices only dropped 7%. we get it from every side. the excuse is that we are catching up on costs we couldn't pass on as prices were rising.

Sep 16, 2008 01:57 PM

Crude is at $94 as I write this, but gas prices are increasing because production was shut down in the Gulf during Ike - not just the drilling, but the refining too. Supply is reduced, prices go up. Supply is increased (oh I don't know - maybe we could drill and build a refinery or two) then prices will comes down.

Sep 16, 2008 02:16 PM

Delaware Junk Removal Residential And Commercial Hauling Clean Outs

Delaware Junk Removal 302-530-9186 - Wilmington, DE

Whole House Clean Outs, Basements, Garages, Attics

Im holding off on filling the ole oil tank for a while!

Sep 16, 2008 03:02 PM

Oil prices appear to be tanking....

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