If the price goes up, people will buy less
Simple market economics and it bears fruit once again.
From
Bloomberg:
Crude Oil Declines to Five-Week Low Before OPEC Output Meeting
Crude oil futures declined to their lowest in more than five weeks before an OPEC production meeting and amid signs of an economic slowdown in the U.S., the world's largest energy user.
Consumer spending in the U.S. rose less than forecast in October, fuelling concern that growth is faltering. Twelve out of 22 analysts forecast that the Organization of Petroleum Exporting Countries will keep output levels unchanged at its Dec. 5 meeting in Abu Dhabi, according to a Bloomberg News survey.
"Participants are getting nervous both about the worsening macro backdrop in the U.S., as well as the upcoming OPEC meeting," Edward Meir, an analyst at MF Global Ltd. in Connecticut said in a report today.
Crude oil for January delivery fell as much as $1.24, or 1.4 percent, to $87.47 a barrel, its lowest on the New York Mercantile Exchange since Oct. 25. It last traded at $87.95 at 12:18 a.m. London time.
The price floats to what level people are willing to spend.
Now if they would just get on the ball with Nuclear...
Posted by DaveH at December 3, 2007 11:40 AM