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Crude sinks amid Saudi comments, Europe woes

MarketWatch -- Pressure on crude-oil futures was intensifying on Monday, driven by comments from Saudi Arabia’s oil minister and escalating political crisis in Greece.

After moving lower during Asian trading hours Monday, benchmark losses for U.S. crude futures for June delivery saw declines deepen during European trading hours.

Oil futures declined $1.72 or 1.8% to $94.38 a barrel, down from Friday’s settlement of $96.13 on the New York Mercantile Exchange.

The Friday close was already the lowest of the year, weighed by demand concerns and weak economic data out of China last week.

Monday’s drop followed the latest remarks on crude prices from Saudi Arabia’s oil minister Ali al-Naimi, who said European benchmark Brent crude should trade at $100 a barrel.

On Monday, the Brent crude July contract ...

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Submitted May 14, 2012 By: brbaritone

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DrCashFlow Champion Author Massachusetts Posts:7,059 Points:1,625,275 Joined:Jun 2008	Message Posted: May 15, 2012 1:12:15 AM Ignore DrCashFlow Report Abuse Recession will be here by 1q 2012
Nicoalbum Champion Author Ottawa Posts:6,005 Points:1,186,100 Joined:Jan 2010	Message Posted: May 14, 2012 12:41:49 PM Ignore Nicoalbum Report Abuse Too bad. Otherwise it could slide more.
JCI46009IN Champion Author Indiana Posts:2,129 Points:439,570 Joined:Sep 2011	Message Posted: May 14, 2012 11:04:17 AM Ignore JCI46009IN Report Abuse Yeah!!!!!!!! Keep dropin
Ken2OD Champion Author Grand Rapids Posts:9,057 Points:1,969,015 Joined:Dec 2005	Message Posted: May 14, 2012 9:13:13 AM Ignore Ken2OD Report Abuse How can "crude" sink? I always thought that oil floated on top of "watered down Dollars."
investmentdr Champion Author Cleveland Posts:4,014 Points:1,452,875 Joined:Sep 2008	Message Posted: May 14, 2012 8:55:00 AM Ignore investmentdr Report Abuse keep droppin
Rockyguitar Champion Author Tampa Posts:2,552 Points:1,199,745 Joined:Sep 2008	Message Posted: May 14, 2012 8:40:28 AM Ignore Rockyguitar Report Abuse Crude oil, "I'm falling and I can't get up!" Hope so.
Buckeyee Champion Author Maine Posts:4,597 Points:897,055 Joined:May 2010	Message Posted: May 14, 2012 8:37:06 AM Ignore Buckeyee Report Abuse Keep dropping.
Luckylindy Champion Author Milwaukee Posts:4,504 Points:1,125,120 Joined:May 2008	Message Posted: May 14, 2012 8:36:05 AM Ignore Luckylindy Report Abuse And hopefully the speculators are getting burned in the process.
mossimo36 Champion Author St. Louis Posts:2,650 Points:493,925 Joined:Sep 2011	Message Posted: May 14, 2012 8:29:15 AM Ignore mossimo36 Report Abuse Keep falling!
nj2000ng Champion Author Houston Posts:1,507 Points:449,020 Joined:Jan 2010	Message Posted: May 14, 2012 8:26:09 AM Ignore nj2000ng Report Abuse Very good.
MImusicman Champion Author Michigan Posts:1,863 Points:405,725 Joined:Mar 2012	Message Posted: May 14, 2012 8:25:11 AM Ignore MImusicman Report Abuse I don't mind when oil goes down BUT I hate it when the 401k, ROTH and college funds drop!
jethro5000 Champion Author Kentucky Posts:1,867 Points:389,285 Joined:Jun 2005	Message Posted: May 14, 2012 8:10:18 AM Ignore jethro5000 Report Abuse I hope oil prices keep dropping. It is ridiculous that oil is/was as high as it was. It is all speculation. People talk about short supply, running out of oil, etc. but that is simply propoganda. The US alone has so many sources and supply of oil that they simply will not use. And that's not even counting/considering oil shale. Oil is there, the people (and the environmenatlists) just have to be willing to get it.
GingoutMD Champion Author Maryland Posts:3,495 Points:713,305 Joined:Jan 2010	Message Posted: May 14, 2012 8:07:37 AM Ignore GingoutMD Report Abuse I hope this translates to lower prices at the pump, as I have already seen a steady decrease in my area.
orphancarguyPE Champion Author PEI Posts:3,832 Points:731,965 Joined:Jan 2011	Message Posted: May 14, 2012 7:57:53 AM Ignore orphancarguyPE Report Abuse Nice that the Saudis can still 'fix' (in the best possible meaning) the oil market somewhat, some of the time, by their directions comments. It will be another story when the demand outstrips actual production, which could happen any old time, from next week to 5 years from now, depending on mid-east stupidities, earthquakes, outages, revolutions or civil war. Anything can through a monkey wrench in the works, as the "get off nuclear power in one year flat by any means" as has happened/is happening in Japan. (54 nuke electric power plants going offline, back-filled by more oil, natural gas and coal imports. Funny how one tsunami damaged nuke complex releasing radiation all over can change people's minds about the safety of nuclear power like that) The production/consumption/reserve production margin is soooo close nowadays--about 1% or so--that anything such as one major oil field with pipeline/production problems (say the Saudi's Ghawar at 6.25% of work supply), or one successful terrorist attack, or even the "successful"(?) shutting down of the Iranian's oil exports (about 4% of world wide oil supply) could cause absolute chaos.
lsb1955 Champion Author Salt Lake City Posts:2,018 Points:517,620 Joined:Aug 2011	Message Posted: May 14, 2012 7:55:53 AM Ignore lsb1955 Report Abuse hope to see a similar drop at the pump
CorvairHaven Champion Author Cleveland Posts:4,344 Points:1,451,140 Joined:Sep 2008	Message Posted: May 14, 2012 7:53:10 AM Ignore CorvairHaven Report Abuse Now for a corresponding decrease at the pumps...
rickone All-Star Author Detroit Posts:540 Points:391,860 Joined:May 2004	Message Posted: May 14, 2012 7:52:44 AM Ignore rickone Report Abuse Interesting - Thanks for posting.
72_Monte Champion Author Twin Cities Posts:7,760 Points:1,994,510 Joined:Aug 2005	Message Posted: May 14, 2012 7:52:21 AM Ignore 72_Monte Report Abuse What the Saudi oil minister drunk??
Ouch06 Champion Author Michigan Posts:1,608 Points:1,429,655 Joined:Apr 2006	Message Posted: May 14, 2012 7:50:12 AM Ignore Ouch06 Report Abuse Good.
Evilmaddog Champion Author British Columbia Posts:3,312 Points:955,600 Joined:Aug 2010	Message Posted: May 14, 2012 7:48:52 AM Ignore Evilmaddog Report Abuse ?????????
amoshins Champion Author Trenton Posts:2,185 Points:639,595 Joined:Apr 2011	Message Posted: May 14, 2012 7:43:54 AM Ignore amoshins Report Abuse That is a good sink of 1.8%
tgusa Champion Author Virginia Beach Posts:2,476 Points:439,875 Joined:Jun 2006	Message Posted: May 14, 2012 7:38:27 AM Ignore tgusa Report Abuse good
gandalfthegrey1 Champion Author Houston Posts:1,184 Points:384,785 Joined:Feb 2011	Message Posted: May 14, 2012 7:37:20 AM Ignore gandalfthegrey1 Report Abuse Cautiously optimisitic for a change.
bluestang96 Veteran Author Ohio Posts:268 Points:107,865 Joined:Mar 2012	Message Posted: May 14, 2012 7:33:36 AM Ignore bluestang96 Report Abuse Will be nice for the summer.
bar1035 Champion Author Charlotte Posts:9,141 Points:1,296,270 Joined:Aug 2006	Message Posted: May 14, 2012 7:31:47 AM Ignore bar1035 Report Abuse You're 401k might be down again today too.
doeslayersr Champion Author Illinois Posts:9,098 Points:869,305 Joined:Dec 2010	Message Posted: May 14, 2012 7:30:56 AM Ignore doeslayersr Report Abuse Needs to plunge another $40 dollars a barrel at least. The bad thing is the reset in Europe will take a good chunk of the US economy with it.
RichardoB Champion Author Fayetteville Posts:7,992 Points:2,001,235 Joined:Jun 2007	Message Posted: May 14, 2012 7:28:42 AM Ignore RichardoB Report Abuse I hope a lot of speculators lost a lot of money.
1tallford Sophomore Author Rhode Island Posts:128 Points:22,225 Joined:Aug 2011	Message Posted: May 14, 2012 7:27:06 AM Ignore 1tallford Report Abuse Still too high.
MLB2701 Sophomore Author Medford Posts:196 Points:721,595 Joined:Feb 2011	Message Posted: May 14, 2012 7:27:06 AM Ignore MLB2701 Report Abuse oil is down but gas is up on the west coast
335d1 Champion Author Virginia Posts:2,371 Points:757,095 Joined:Feb 2011	Message Posted: May 14, 2012 7:26:23 AM Ignore 335d1 Report Abuse And let's see what happens to gas prices.
jrschl Champion Author Louisville Posts:2,953 Points:678,235 Joined:Jun 2011	Message Posted: May 14, 2012 7:25:57 AM Ignore jrschl Report Abuse Keep going down. Now if we can get some reflection in the pump prices, say...$1.85/gal...
cdrrod Champion Author Wisconsin Posts:4,144 Points:781,825 Joined:Feb 2006	Message Posted: May 14, 2012 7:25:22 AM Ignore cdrrod Report Abuse Awwww, is Saudi losing money? Too bad, so sad!
EricBrazil Champion Author Miami Posts:2,127 Points:470,525 Joined:Nov 2011	Message Posted: May 14, 2012 7:15:20 AM Ignore EricBrazil Report Abuse Ok
brbaritone Champion Author Virginia Posts:2,063 Points:1,696,210 Joined:Jan 2007	Message Posted: May 14, 2012 7:09:05 AM Ignore brbaritone Report Abuse Keep a'comin' on down. There's a long way to go before oil approaches a price that reflects the actual cost of production. Oil prices have been in a bubble for too long, and it's past time for that the bubble to pop.
bondo Champion Author Twin Cities Posts:3,501 Points:760,060 Joined:May 2001	Message Posted: May 14, 2012 7:08:49 AM Ignore bondo Report Abuse Up, down, where is it going?
brbaritone Champion Author Virginia Posts:2,063 Points:1,696,210 Joined:Jan 2007	Message Posted: May 14, 2012 7:06:28 AM Ignore brbaritone Report Abuse The article continues: ... dropped to $110.01, down from Friday’s ICE settlement of $111.77. Speaking in Adelaide, Australia, al-Naimi also said that global crude-oil stocks would likely rise in anticipation of high seasonal demand, starting in July. Meanwhile, the apparent failure of weekend multiparty talks in Greece to form a coalition government that can shepherd the nation through austerity measures required for Greek bailout payments also raised concerns of further turmoil in Europe, and acted as a weight on the commodity. Further headwinds for crude came from a rising U.S. dollar, with the ICE dollar index climbing to 80.501, up from 80.296 in late North American trade Friday.