On the September crude futures' first full day as the front month contract, oil prices tumbled another $4 per barrel today, leaving it trading below $125.
For those keeping score at home, that's a decline of nearly $23 per barrel (more than 15%) in 7 trading sessions. Those fleeting $140s are looking bubblier and bubblier and the evil speculators who conspire to impoverish us with manipulated oil prices finally seem to have gotten on our side.
Plunging oil prices are great - they take the edge off of mounting inflationary pressures, they reduce a persistent economic headwind, they put more money in consumers' pockets, and they make certain stocks go simply berserk.
And just when everything's coming up Milhouse, the U.S. Senate is preparing to change the rules of oil trading, convinced that the evil speculators (the ones now rapidly bidding down prices) need to be stopped.
Wednesday, July 23, 2008
Senate can't take falling oil prices
From Suitably Flip.