Oil drops four dollars as Gustav hits N.O. and the oil rich gulf...?

Question

Am I missing something?

Answer 1

Ya that one struck me too

Answer 2

Dollar has stabilized.     Also, oil had bumped up but Gustav wasn't as strong as people initially thought.

It's kind of like when a company posts a loss but the stock goes up - because the loss was less than analysts expected, or because the backlog is stronger than expected.    Markets trade on outlook, not history.

Answer 3

No, I am sure you have realized by now that we were lying about a shortage of oil. There is a glut of oil on the market right now. With no war on Iran rhetoric to drive the speculative prices the bubble has to deflate because demand is going down.

Answer 4

Probably because the hurrican has been downgraded to a category two.  So it won't do as much damage.

Answer 5

Up as the storm approaches, down as fears of storm damage recede.

Answer 6

there was never a shortage. they made a killing, competition setting in.  

Answer 7

the US finaancials are improving and the dollar is gaining....but the dollar is not protecting the price of oil from a hurricane....the American and World economy is dragging....using less oil.....granted more alternative sources are being tapped, but I believe that right now the issue is world wide stagnation

Answer 8

Buy on the rumor sell on the news.