Oil Futures Trading Taking A Nose Dive: Not Expected To Rebound

There has been much concern about the slowing demand and rising inventory of crude oil. Despite this concern, crude oil futures saw a slight gain today. It's going to become more difficult for these gains to continue though, because the U.S. demand is beginning its yearly decline.

On the New York Merchantile Exchange, the crude has traded for October delivery at 24 cents, or 0.3 percent to $74.06 a barrel. There were numerous traders who had hoped to see an incline in gasoline consumption, but that did not happen. Investors fear continues to mount as it's becoming clear that the annual Fall decline will be even more pronounced.

Earlier this month, several money managers including Hedge funds, took speculative positions on the increasing oil prices which topped almost $80 a barrel. According to the Commodity Futures Trading Commission, these money managers have now changed their tune and are leading the way out of the oil market all together.

Analysts from Societe Generale wrote, "The bottom line is that even though recent actual demand figures from key countries such as the U.S. and China remain healthy, high inventories are unambiguously bearish."

BP's (NYSE:BP) Hayward Denies Oil Plumes Exist

BP (NYSE:BP) has said many things, Tony Hayward is now saying that the oil plumes don't exist, but scientist are saying they do. This seems to just be another attempt by BP to try and not take responsibility for their actions.

Scientist say there are several deadly oil plumes that have been spotted in the Gulf of Mexico. According to the scientists, they were created by the combination of the oil, gas, and chemical dispersants unleashed into the Gulf. The plumes create what's called dead zones where there is no oxygen and nothing can survive in or around them.

There is one oil plume only 35 miles from Florida's shore in the Panhandle. There is another plume 22 miles long and 6 feet wide that reaches to a depth of 3,300 lingering in the Gulf. As well as also the first plume to be discovered that is 10 miles long, 3 miles wide, and 300 feet deep. Other plumes remain in deeper waters.

What BP is trying to prove by continuing to lie isn't for certain. Considering there is proof of the existence of the oil plumes caused by the worst oil spill in U.S. history.