Why has the price of crude oil been going south? According to yesterday's Wall Street Journal,
Light, sweet crude oil for October delivery on the New York Mercantile Exchange, ahead of the contract's expiration Thursday, slid $3.31, to settle at $91.98 a barrel. The drop was the biggest in a single day since July 23 and put prices at their lowest level since Aug. 3.
I thought that QE3 would lead to higher oil prices as the dollar continues to lose value and the price of mortgage backed securities, with an artificial push from the Fed, goes up more briskly than it would if left to its own devices.
Saudi Arabia wants oil prices to go down, according to the article. And the slower US economy leads to a reduction in demand, which leads to lower prices.