Not to quibble here my dear SPG, but it wasn't exactly an $8.00 drop. It was a $6.44
drop from open to close.

At one point it was briefly down around nine bucks, most of that in one freaky few minute dive.

Okay, so it was a $10.81 drop from a session high of $146.73 to the session low of $135.92, but let's not forget that $135.04 was an *all-time record high* less than two months ago.

The early peakoilers have long ago warned us that as we get near the peak, prices will become more and more volatile. We are already getting used to seeing $10 swings in both directions, and Phil Flynn of Alaron Trading had commented on that recently as well.

Now, I suspect that the next step is to get $15 swings, and then $20 swings, in both directions, and things will start to get more and more "interesting".

OK. Fine. I didn't have the chart in front of me. The point is, that prices move up because bulls have money to bid them up. Prices move down because bears have money to bid them down. The bullish movement of oil, of late, has been pretty anemic. The bearish movement, more robust. When the price struggles to get back up and barely makes a new high before plummeting on heavy volume, it signals that the bears are starting to gain strength and may take control. The uptrend is still intact for the moment, but it's showing signs of weakness and that a short term reversal may be in the offing. I think it's also particularly telling that natural gas and coal already began similar corrections two weeks ago.

Anyway, it'll be interesting to see where this goes over the next week.

Down another $4.50 today.

It could end up similar to what occurred last January when energy markets corrected 20%+ then sprang back 40%+ from those lows until the recent correction. Up, down, up down... isn't watching the energy market fun! Especially if you in it!

Oil down almost 10% (~7-8%) in the last two days.

So, are the Priuses and Yarises finally making a dent, or are we entering a full-blown recession?

$130, $130, $130

Do I hear $100, $100, $100

Do I hear $80, going twice, Sold fo $80.

Was that a good price or not?

Fools don't know when to get out.

Why not $40?

Why not $20

What's to keep it above $10?

So are you saying peak oil is a lie?

Well the news reports it being the surprizing jump in supplies. I think a lot of us lay non doomer traders felts at a certain price point there would be demand destruction that would lower the price.

NOBODY knows.It could have peaked pricewise and may trade between $110 and $145 for a while? Im betting theyre will be a spike after the Bejing Olympics.
Were on a production downslope 2-4 years out before the cliff goes vertical.

Which would then destroy the demand destruction allowing for the price to spike again

I vote recession.

Yes, China will be sure to take advantage of this opportunity as well as many other nations who hold dollars. What better way to dump the dollar than send those dollars to the ME?

That's more or less what I'd expect. Actually, look at gold over the last couple of months. It did exactly this sort of thing. After a long bull run it dropped back to the 200 day moving average. Now it's off and running again.

Exactly. We are in a death-spiral with oil.

Oil down. Stock market up. Financials check yes to a few new projects. Projects get built. Demand increases. Oil goes up.

Meanwhile, population is going up the entire time.