Why is the price of oil dropping and will this trend continue or not?

Question

Why is the price of oil dropping and will this trend continue or not?

Answer 1

The dollar is getting stronger, and demand has gone down.  So the price of oil has come down slightly.  It is still much higher than it was at this time last year.

Will the trend continue?  God I hope so!  But oil usually goes down at this time of year.  If it doesn't drop below $100 by winter, it will be a h**l of a year next year.  Prices usually start edging up in winter as demand increases closer to spring.

Answer 2

oh sorry i did some reasearching and it is going down sorry soo sorry i feel dumb ssooorrry and it might go down by a little bit i think we should drill or find an alternitive and fast!

Answer 3

The speculators are getting out of the market because they can see demand falling for oil because of the world recession which is starting.

Nobody knows how far it will fall, but until the world economy picks up again in maybe 1-2 years I think you can expect prices to maybe level out at $90 or $100.

Lots of uncertainties in there, especially with a war going on between Russia and Georgia, and then there's the little problem of what will happen with Iran.

EDIT: I'm surprised at people saying it's down to the strengthening dollar. Over the past few weeks, the dollar has risen by perhaps 5 percent against other currencies like the euro, but the oil price has dropped from nearly $150 to $115. The dollar is not the major factor here, believe me.

Answer 4

Because Inventories are growing along with a US Dollar that is increasing in value..

Here is a chart of prices across the US for the last month. Obviously prices are dropping.

http://66.70.86.64/ChartServer/ch.gascha...