Why is the price of oil going down so quickly?

There are rumors permanent magnet motors have become a reality.If so oil will become a minor part of the economy in the coming years.Why is the price of oil going down so quickly?
supply is high, and demand is down. [China is in the same downed economy slide that the US is in, so they have cut way back too]Why is the price of oil going down so quickly?
Currently it is known as a world wide recession, on top of that the speculators finally stop overpricing the barrel of oil along with the market crash. Oil will always play at least a medium part of the economy as oil is used for a lot more than fueling vehicles and heating homes. There are great number of products that contain oil byproducts like plastics. So no matter what type of motor is created, there will be a need for oil for a long time until we devise ways to replace all plastic products and can increase the affordability to replace all heating units, and vehicles.
OPEC is trying to have us getting back to driving more again and stop thinking about conservation by lowering the price of crude oil thereby cheaper gasoline.





If we continue to conserve and work together to develop alternative energy sources, we could really choke the middle east riches since majority of terror groups are funded by some of these oil tycoons. If we could starve the funding sources of the terror groups, we could alleviate many attacks like what we saw in Mumbai, India.
This is my same question I am glad that you asked it your way. There are a number of theories but I will go with the least offensive. The automobile industry had to get out of bed with the oil companies before they lose their shirts. Prices come down, people buy cars, they slowly climb out of debt and people maintain or retain their jobs.
It's the old rule of supply and demand... the


world's major economies are in recession,


so demand is down.





Of course, I'd like to believe the US, Europeans,


or Russians [or a combination of these big three]


have been secretly developing and perfecting


clean and unlimited space-based solar energy...


dare to dream :)









This is only happening now because everyone feels poor so they cut the demand in oil. Once confidence in the market increases, and we break this recession, demand will probally skyrocket.
there has been 1 million jobs lost since January...less money out there, less people driving. With the economy heading south fast, no one is spending anything, so therefore oil is going down as well..its all in the demand for oil.