Updated
Crude oil closed on the New York Mercantile Exchange a little over $124.00, down roughly 16% from its high on July 11. A number of factors are contributing to the decline, including the prospect of increased government oversight and increasing evidence that high prices are changing consumer behavior. It is also possible that speculators who entered the market late are getting nervous about the runup in prices and are closing out positions and taking profits.
Despite summer being the peak driving season, gasoline stockpiles rose much faster than expected. Prospects of an economic slowdown are also a bearish indicator for energy prices.
It is too early to say that we are out of the woods, and international instability or a bad weather event could send prices rising. But there has been a break in the speculative fever, and that is a good thing.
You can see crude price data at the NYMEX website:
http://www.nymex.com/lsco_fut_cso.aspx
More coverage can be found at:
http://money.cnn.com/2008/07/23/news/economy/oil/index.htm?postversion=2008072315
I paid $3.89 yesterday, down from $4.15 a couple of weeks ago. Amazing isn't it that the slide in prices almost exactly coincided with the President calling for more drilling in ANWR and on the continental shelf.
Now of course, Hurricane Somethingaruther is threatening the Texas coast and (of course) the drilling platforms in the Gulf.