BusinessOil Markets Search for Signs of Bubble BurstingOil Markets Search for Signs of Bubble BurstingThe Associated PressThe months-long rise in oil prices took a steep dive this week as another slide in oil capped crude's biggest one-week drop in more than three years. (July 18)[Notes:ANCHOR VOICE] The months-long rise in oil prices took a steep dive this week as another slide in oil capped crude's biggest one-week drop in more than three years.. Trading began on Monday with a barrel of oil commanding more than $145, slightly below last Friday's high, which topped $147. But on Tuesday, as Federal Reserve Chairman Ben Bernanke delivered a bleak outlook on the economy, the mood began to change.[Notes:SOT Adam Schrek, AP Energy Writer]WHEN THE ECONOMYS IN BAD SHAPE PEOPLE OF COURSE ARE NOT BUYING AS MUCH, NOT DRIVING AS MUCH AND THAT REDUCES DEMAND FOR OIL. THAT WAS ONE OF THE FACTORS THAT WAS IN PLAY.[Notes:SOT Adam Schrek, AP Energy Writer]As news of Bernanke's grim outlook spread to the markets, traders began to move oil more quickly than they had been in recent days.WHAT HAPPENS IS WHEN YOU HAVE A BIG DROP, THAT STARTS TO CONVINCE PEOPLE TO SELL AS WELL. THEN SOME PEOPLE HAVE ORDERS FOR OIL AT CERTAIN POINTS, EITHER TO BUY OR SELL ALREADY SET UP IN THE COMPUTER. THAT TRIGGERS AN OUTOMATIC SELLING OF MORE OIL SO ITS STARTS TO ESCALATE.[Notes:Graphic - Oil Prices]The escalation continued through Friday, with oil losing to close down . 41at $128.88. Despite losing $14.86 for the week, consumers are unlikely to see much relief at the pump anytime soon.[Notes:SOT Adam Schrek, AP Energy Writer]THERES DEFINETLY A CONNECTION BETWEEN THE PRICE OF OIL AND THE PRICE OF GAS. BUT ITS NOX EXACTLY ITS AS SIMPLE AS IF THE PRICE OF OIL GOES UP A DOLLAR OR TWO THE PRICE OF GAS GOES UP BY A SIMILAR FACTOR. IT TAKES QUITE A BIT OF TIME FOR OIL TO BE BOUGHT AND SOLD, REFINED INTO GAS AND THEN SOLD.[Notes:Horse and buggy walking past gas station]So for consumers looking to bypass the pain at the pump, the options are limited.MOSMOSAnd with gas tanks like these topping off at over $100, its easy to see how high oil prices are pinching precious dollars from the rest of the struggling economy. ___ ___, The Associated Press.(****END****) Author: AssociatedPress Keywords: oil prices markets search signs bubble bursting Added: July 18, 2008
