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IBDvalueinvestin (98.36)

Crude Oil has fallen fast last 5 days.



September 24, 2012 – Comments (3) | RELATED TICKERS: OIL , SPY , DIA

Crude was near $100 just a few days ago and now its at $91 today and even lower in futures contract for Dec. as low as $85


Crude Oil Dec 18 (CLZ18.NYM) -NY Mercantile

85.01 1.95(2.24%) 8:43AM EDT

3 Comments – Post Your Own

#1) On September 24, 2012 at 2:13 PM, amassafortune (29.12) wrote:

The Saudis are voting for Obama. Expect higher crude by mid-Nov.

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#2) On September 24, 2012 at 2:28 PM, IBDvalueinvestin (98.36) wrote:

Crude oil price has nothing to do with a Democrat as president, if your gonna go in that direction then why did gasoline prices remain at or near $1/gal during the entire 8 year democratic term of Clinton?

Its all about the decline in the US Dollar metric or increase in the same.

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#3) On September 26, 2012 at 3:05 PM, amassafortune (29.12) wrote:

I'm not saying the Saudis are pro-Democrat, but for whatever reason, they prefer to continue to deal with Obama. Maybe they like Obama's 'one-world' policy tendencies, or just know Romney has a much tougher negotiating history. 

The value of the dollar is important, but for the Saudis to come out with pro-pumping statements within two months of the election after the price of oil has already exhibited downward pressure in recent weeks, suggests they might be trying to influence the process. 

Compared to the Clinton era, the world has tens of millions fewer barrels of oil and remaining stocks are more expensive to recover. We have HFT, more commodity-centric hedge funds, and banks that do a much higher percentage of oil trading with 0% digitally-created dollars.

Maybe I'm too cynical, but I think political changes, improved data mining and targeted marketing, have greatly improved the effectiveness of influence peddling in recent years. 

I'll set a reminder to see if the price of oil bounces back soon after the election as I think it will. My point is that recent actions to drive down the price of oil are election-based, not an effort to keep the price of oil low for the longer-term benefit of jobs, the economy, or helping household budgets. 

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