The Telegraph says the oil bubble has burst. The market is ignoring the disruption in supply through the Baku-Tblisi-Ceyhan pipeline as well as the battles in South Ossetia. AP says this:

Oil prices resumed their descent Friday, dropping below $117 a barrel (and then to $116) as a strengthening dollar and expectations of slowing demand offset supply concerns over a sabotaged pipeline in Turkey.

Light, sweet crude for September delivery slumped $3.43 to $116.58 a barrel in morning trading on the New York Mercantile Exchange, after dipping as low as $116.10.

Analysts have pointed to the $117 a barrel mark as technically significant — a move below this level shows, they say, that oil’s recent slide might be more than a brief pullback. Crude peaked at $147.27 on July 11.

Question: doesn’t the $30 per barrel decline in the price of oil seem quieter than the run-up in its price? Wasn’t it only a couple of weeks ago that we saw that story saying “This time it’s different”?

This entry was posted on Friday, August 8th, 2008 at 3:26 pm and is filed under business, General, Religion. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.