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Oil slips below $36 ($35) as rising US crude inventories fuel demand concerns
Minneapolis Star Ttribune ^ | February 12, 2009 - 8:04 AM | JAKE NEUBACHER

Posted on 02/12/2009 7:54:25 AM PST by TLI

VIENNA - Surging crude inventories and investor skepticism over the U.S. stimulus package dragged oil prices below $36 ($35) per barrel Thursday.

Investors seemed more wary than relieved after U.S. lawmakers finally agreed overnight to a $790 billion stimulus bill designed to pull the economy out of recession.

(Excerpt) Read more at startribune.com ...


TOPICS: Business/Economy; Miscellaneous
KEYWORDS: crude; economy; energy; futures; gas; oil
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To: Tarpon
Obama intends to ration energy, drive up prices, by the simple act of constraining supply -- Both transport fuel and electricity.

Didn't Uncle Joe do that with food, in order to take care of that pesky kulaks problem?

21 posted on 02/12/2009 8:24:17 AM PST by Turbo Pig (...to close with and destroy the enemy...)
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To: sonrise57
in order to reduce gasoline and distillate stockpiles

Gasoline and distillate stocks are far from low.

This Week In Petroleum
http://tonto.eia.doe.gov/oog/info/twip/twip.asp

Demand has fallen off. It should be no surprise if there are cut backs in production.


22 posted on 02/12/2009 8:24:48 AM PST by thackney (life is fragile, handle with prayer)
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To: Tarpon

He’s going to tax the supply. Our world operates on utilities...there is no “cure”...that’s how it is.


23 posted on 02/12/2009 8:30:48 AM PST by Sacajaweau (I'm planting corn...Have to feed my car.)
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To: meyer; All

You forgot ammo.....that’s way up!

Currency of the future.


24 posted on 02/12/2009 8:33:12 AM PST by Red in Blue PA (If guns cause crime, then all of mine are defective.)
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To: PugetSoundSoldier
The following months, including WTI, are all showing traders expect prices to climb but there is currently too much oil in US storage relative to immediate demand.


25 posted on 02/12/2009 8:37:22 AM PST by thackney (life is fragile, handle with prayer)
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To: thackney; PugetSoundSoldier
Brent is primarily refined in Northwest Europe. Typical price difference per barrel is about $1 less than WTI, and $1 more than OPEC Basket. However, in 2007 Brent Crude futures have been trading at a premium to WTI of approximately $1 to $3 (NOT $9 to $10) per barrel. The depletion of the North Sea oil fields is one explanation for the divergence in prices.

Nymex Crude Future 34.90 -1.04
Dated Brent Spot 44.23 +.35
WTI Cushing Spot 35.05 -.89

So, the NYMX and WTI are a closer match for the situation here in the u.S. And right now they are at $35.

While gasoline is still going up and refining is about 14% lower than normal (95%)

26 posted on 02/12/2009 8:40:18 AM PST by TLI ( ITINERIS IMPENDEO VALHALLA)
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To: TLI

Also the very high crude stock levels in the US affect this pricing spread. We are not in a normal situation at this time.


27 posted on 02/12/2009 8:44:27 AM PST by thackney (life is fragile, handle with prayer)
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To: thackney

You would think the refineries would be blowing and going at $35 a brl and storing it in bathtubs if necessary.

Perhaps they know somthing about crude prices in the near future we don’t?


28 posted on 02/12/2009 8:47:20 AM PST by TLI ( ITINERIS IMPENDEO VALHALLA)
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To: TLI

It didn’t reach $35 until today.

And demand for products is down. The amounts in storage is high.

With predictions of an economy to continue to decline they probably expect demand to continue to decline.


29 posted on 02/12/2009 8:55:48 AM PST by thackney (life is fragile, handle with prayer)
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To: thackney
With predictions of an economy to continue to decline they probably expect demand to continue to decline.

So we can expect gas prices to fall?

Nymex RBOB Gasoline Future, 02-09-12, 129.78 / +2.80 / % change +2.21 / Time=11:09 am

30 posted on 02/12/2009 9:04:52 AM PST by TLI ( ITINERIS IMPENDEO VALHALLA)
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To: Turbo Pig
Yep, communism is like one of those old records that just keeps going around and around, spreading misery everywhere, never going anywhere.

About 125 million worldwide were killed by the Marxists, Communists, Fascists, Socialists during th 20th century, and now here come the Obammunists. All in the name of the common good.

31 posted on 02/12/2009 9:05:58 AM PST by Tarpon (If you don't stand on principle, you stand for nothing at all.)
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To: TLI
Crude oil is predicted to rise (at least by the traders). Crude oil remains the biggest price component in the breakdown of cost of gasoline.


32 posted on 02/12/2009 9:12:56 AM PST by thackney (life is fragile, handle with prayer)
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To: SoldierDad

“...Yet, the price of gas at the pumps keeps going up - facinating!!!...”

It’s called price gouging. And this time nobody can convince me otherwise.


33 posted on 02/12/2009 9:13:28 AM PST by NCC-1701 (DRILL NOW. DRILL OFTEN. DRILL 24/7/365. PAY LESS. SUCK THE GROUND DRY.)
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To: TLI

Gasoline prices have been screwy for the past few weeks here. Two stations, same Company, five miles apart on the interstate I drive every morning have been bouncing back and forth between $1.89 and $1.75. The curious thing is that both won’t have the same price on the same day. One day one will be $1.85 and the other $1.79 and the next day they are just reverse. I’d like someone explain those price fluctuations.


34 posted on 02/12/2009 9:33:51 AM PST by OB1kNOb (Obama? No Hope. Forget Change. Just more of the same old same old. Only worse. Much worse.)
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To: Red in Blue PA
You forgot ammo.....that’s way up!

Indeed - I'm long on brass, lead, and copper.

35 posted on 02/12/2009 9:41:14 AM PST by meyer (The left is flooding the ship - let's quit bailing water. We are all John Galt.)
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To: NCC-1701

No one convinced me it wasn’t price gouging before.


36 posted on 02/12/2009 10:33:29 AM PST by SoldierDad (Proud Dad of a U.S. Army Infantry Soldier presently instructing at Ft. Benning.)
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To: thackney

So what is the explanation for higher prices at the pump? Laymen’s explanation if possible.


37 posted on 02/12/2009 11:30:13 AM PST by sonrise57 (Help us God for evil men have surrounded us.)
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To: sonrise57

http://www.freerepublic.com/focus/chat/2184077/posts?page=10#10


38 posted on 02/12/2009 11:36:02 AM PST by thackney (life is fragile, handle with prayer)
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To: thackney

Thanks. One more dumb question. I’m trying to understand this stuff. Why did the spot price of gasoline fall below the price of crude last year and why is their what seems me a large spread now?


39 posted on 02/12/2009 12:27:55 PM PST by sonrise57 (Help us God for evil men have surrounded us.)
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