Crude Oil Tumbles Most in Two Years on Jobless Claims, Gain in the Dollar

By Mark Shenk

May 5 (Bloomberg) -- Crude oil tumbled the most in two years as U.S. jobless claims climbed, bolstering concern that economic growth and fuel demand will decline. The drop accelerated after the dollar surged against the euro.

Oil fell as much as 7.5 percent after the Labor Department said applications for jobless benefits rose by 43,000 to 474,000 last week, the most since August. The dollar advanced against the euro after European Central Bank President Jean-Claude Trichet said inflation risks will be watched “very closely,” signaling the ECB may wait until after June to raise rates.

“We’ve got a bit of a blood bath going on now,” said Peter Beutel, president of trading advisory company Cameron Hanover Inc. in New Canaan, Connecticut. “Once the ECB refused to raise rates we saw the dollar take off and the drop in commodities accelerate.”

Crude oil for June delivery fell $6.49, or 5.9 percent, to $102.75 a barrel at 12:31 p.m. on the New York Mercantile Exchange. Futures are heading for the biggest one-day decline since April 20, 2009. Prices are up 28 percent from a year ago.

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:applause: :applause: :applause: :applause: :patriot: :applause: :applause: :applause: :applause: :applause:

;-)

Last time when oil prices collapsed, gas went from almost 5 dollars a gallon to 1.49 a gallon in 3 weeks. I doubt it will fall that far that fast this time because that last fall coincided with the economic collapse but gas will come down, if oil prices fall.

.

Now, maybe gas will go down to around $3.59 and a loaf of bread will only be $4.00.

I payed 1.50 for store brand bread yesterday and thats in Chicago and everything is more expensive in Chicago.

about $14 in 3 days. Wait until monday or tuesday to fill up. Here it is $4.06/gallon and will be down to $3.79 by first of week. Always do the opposite of what the papers say. 3 days ago, all you saw in the paper was "gas will be $6.00".

Same with silver. "will hit $50. soon", since then it has dropped like Palin's polling numbers. From $46 to $36.

Now down to $100.26/barrel. Is the bubble bursting? Anyone else hope to see big banks and hedge funds take a hit?

Yahoooooo

:toast:

Some traders are maing a killing today. I wish I was one of them.