Fluctuation in oil prices?

Can someone explain that how come within months oil price dips from around $150 per barrel to around $38 per barrel.Who is the real gainer and who is the real looser.Fluctuation in oil prices?
Well, look at it like this. Due to the sub-prime crisis, spending has fallen. People got scared, people's wealth fell, people lost jobs, people stopped lending money. spending dropped. oil is an important commodity and unsurprisingly, like other commodities, when demand falls across the economy, the price of oil falls.





its simply because at the moment, people want far less oil. growth has slowed in China and India, and that's important as developing countries drove up, and will continue to drive up (in the future) oil prices. And now that they don't want oil for a little while, oil prices have fallen.














And mild deflation isn't necessarily terrible if its caused by a movement in aggregate supply, as it would be if oil prices fell, because it would result in high growth and lower unemployment. unfortunately, the demand side is mostly responsible for deflationary pressures currently.Fluctuation in oil prices?
The drastic drop in fuel prices coincides with a rapidly strengthening dollar (against foreign currency) caused by the current economic crisis. The dollar is now able to buy a LOT more oil for a lot LESS U.S. Dollars (all oil transactions must be done in U.S. $'s).


OPEC is currently working to reduce production (reducing supply) to stabilize prices. If you recall, when oil prices were at their all-time high, both Bush %26amp; Cheney went to the Saudis in early 2008 to ask for an INCREASE in production...to which they refused.
well im not exactly sure myself but i do know that this not a good sign. My economy teacher said that this has something to do with deflation(thats not good) and the stock market prices dropping. The oil companies were afraid of bad business.
Well, I'm a loser. That's because I loaded up on stocks that are dependent on oil prices. I had to sell out of many of them (I was leveraged) and lost most of my money. Now I still have some invested but I am losing it by the day.