Oil prices drop 10% on bailout bid failure
Prices of crude oil dropped about 10% yesterday on the NYMEX after the US House of Representatives rejected the Bush administration’s bid for a US$700 billion bailout of the American financial sector called the Emergency Economic Stabilization Act of 2008.
November delivery light sweet crude dropped as much as US$11.85 at one point, finally settling down at US$96.37 a barrel, down US$10.52. In London, Brent North Sea crude for November dropped US$9.56 to settle at US$93.98 per barrel.
It previously spiked 16% (up to US$120.92) partly in anticipation of a positive outcome to the very same bailout bid, and a few other reasons such as the expiry of front-month futures contracts and weakening of the US dollar. At the time of that spike November contract delivery prices were US$109.37. December and January contract prices are now roughly the same as November’s price at US$96.09 and US$96.37 respectively.
“Oil prices should remain under downward pressure. Oil traded for the last five years on fear of supply interruptions. It is now trading on fear of economic collapse,” said WTRG Economics analyst James Williams.
With this new news, are the government going to reduce petrol and diesel prices again? Or will they say it not make a difference to their coffers because of other reasons such as the ringgit weakening against the US dollar?
September 30, 2008 @ 7:44 am
be a smart a** leaders!!. No fool exuses without prove it.
September 30, 2008 @ 7:48 am
No more price drop
1. no cabinet meeting until after raya
2. The government need to make more money
3. MYR currency value drop
4. Only for 1 or days.. BODOWI takes avg price
Thanks for smart a** leaders. …
September 30, 2008 @ 8:04 am
So much with the US bail out plan.
Price drop?! How about our national biofuel plan? How about environmental issue(real one, one for boost car sales one)? How about the public transport?
Hohoho, they are not relevent. Follow by this economy collapse, we will have environmental collapse.
September 30, 2008 @ 8:13 am
I don’t think they make more $ by flip-flopping petrol price..See how the petrol merchant react to the price drop issue? Was afraid someday whole kl is not selling petrol anymore, because of frequent price drop/ raise. Dang..
September 30, 2008 @ 8:14 am
I support item 2. The gomen needs to make more money (for what ever reason), michly.
September 30, 2008 @ 8:17 am
Hoping to see more electric car/ hybrid. And states felt empty in their pocket, the G felt empty, and there goes price drop, gao gao!
September 30, 2008 @ 8:23 am
make money? i tot G are making money all these while. but when crisis comes, they cant even sustain, thats why the petrol price rise decrease happens, very unstable or should i say, flip-flop. the rm625 is a joke. we really shouldnt be affected by it, but somehow i felt that they really treat us like milking cow.
September 30, 2008 @ 8:25 am
Hmm really hope will revise soon. But they just announce it not too long ago. So is it only until end of Oct will announce new price?
Seem like will back to previous… but i don’t think will drop back to RM 1.92 ger…
September 30, 2008 @ 9:01 am
hahahah, drop back to RM 1.92? then our leaders pants will drop too…
September 30, 2008 @ 9:19 am
i think they are too busy trying to contain some self-made fire in their turf to worry about this. good luck to the rakyat. the drop if fuel price doesn’t seem to affect prices of essentials. sigh…
September 30, 2008 @ 9:26 am
Now I reaaly worry about the economy…
September 30, 2008 @ 9:32 am
baby…lower fuel prices…
September 30, 2008 @ 11:00 am
Probably drop 3 sen plus another 2 sen given by government. Total decrease 5 sen.
That should make many people happy as they will save another RM10-15 per month. At least something……better than nothing.
September 30, 2008 @ 11:25 am
If the fuel price drop too much, they might scrap the electric ear and hybrid car plans.
Lets not be too happy about this petroleum drop, it is caused by economy down fall.
September 30, 2008 @ 12:03 pm
The crude oil demand is an artificial one. All speculation only. What is the real value of crude oil ?
September 30, 2008 @ 2:11 pm
PATIENT LAH…..
IT JUST DROP ONE DAY……..
SEE IF THE CURRENT DROPPINGS WILL DROP FOR THE MONTH.
NEXT MONTH ADA LAHHHH
September 30, 2008 @ 8:05 pm
no use at all if our G drop the fuel price! 0.15 sen? 0.10 sen? not a big deal, its seem lik doesn’t effetive at all! if drop 0.50 at once baru lah nampak ada isi. boleh bah kalau kau pak lah! our a** leader
October 1, 2008 @ 2:34 am
Let me make a guess.
Our G would decrease the price at minimal amount, less than 20 cents i assume. With all-kind-new-reason (which i could think of), production costs + transportation costs getting more expensive plays as the main reason.
October 1, 2008 @ 4:13 am
Owww Paul…. You’ve just gave them the idea. “The ringgit IS weakening despite the high reserve that this country has in ‘foreign currencies.” (Uhh…most of it in USD is it?)
October 1, 2008 @ 9:25 am
i rather have low car prices than low fuel prices, but i’ll have both anyday