Oil, gas prices take a sudden tumble

CNBC ^ | 4/1/04

[Steven W.]

The Administration’s talk of suspending clean air rules in three states drops crude oil and wholesale gasoline prices. Markets move slightly higher as the Dow Jones average is shuffled.

Have gasoline prices peaked? Maybe.

But the fact is oil and wholesale gasoline prices dropped abruptly this afternoon as the Bush Administration said it was considering suspending clean air rules for three states -- California, New York and Connecticut.

The comments by Energy Secretary Spencer Abraham before a Congressional hearing today knocked crude oil prices down nearly 4.1% to $34.30 and wholesale gasoline futures to $1.07, down 5.5%. Crude ended the day at a 7-week low.

California, New York and Connecticut have asked the Environmental Protection Agency for temporary waivers for the summer, Bloomberg News reported. The states are required to sell gasoline that's blended with ethanol or other substances to make the fuel burn cleaner. Prices had declined in earlier trading on expectations that U.S. inventories will be adequate to meet demand from refiners making gasoline.

The news came as Congress was criticizing the Organization of Petroleum Exporting Countries for deciding to cut back its production by 1 million barrels of oil a day and Democrats were howling at the Bush Administration for doing nothing about rising fuel prices.

Big oil stocks didn’t move much, but oil and gas production stocks and oil services stocks sure did. The Philadelphia Oil Services Index ($OSX.X) was down 2.7%. The Amex Oil Index ($XOI.X) slipped 1.4%.

Assuming the price changes hold, it could knock the price of gasoline off by 10 cents a gallon, CNBC's Melissa Francis reported on "Closing Bell." The national average recently was about $1.74 a gallon.

[netmilsmom]

Oh but, the deficit?!?! Generations years from now will be paying for that tax cut!!!!!
/sarcasm off/

[traumer]

That much for the official story....

TRUST NO ONE !

[Blood of Tyrants]

Hell, if they would just allow a nuke plant to be built without continual government required engineering changes to be made DURING CONSTRUCTION, they would start building them again.

[LizardQueen]

Can someone fill me in on why this would drop the price? If the gasoline was blended with something else (ethanol), and it's the cost of a barrel of oil and shortage of refinery output thats causing the price hike, wouldn't it make the gas cheaper if it were diluted with something else?

I'm probably missing something large here - I'm not getting it...

Thanks
LQ

[Steven W.]

It would increase the number of refineries from which these states can procure gasoline from.

[Gunslingr3]

I've got an idea that he could try as well. Bush tells the nation that the first proposed new refinery and first new atomic plant to be designed and submitted for approval will receive full Executive protection from Judicial injunctions and restrictions against it being built.

I've got an idea that we could try as well. Maintain the seperation of powers in our federal government and not pine for an executive dictatorship.

[techwench]

april fool

[Ernest_at_the_Beach]

It is $2.19 a gallon for 87 octane at a Mobil station on PCH, Huntington Beach, Sunset Beach area. That is Southern California,

[traumer]

see #22
You'll get it....

[teletech]

It is $2.19 a gallon for 87 octane at a Mobil station on PCH, Huntington Beach, Sunset Beach area. That is Southern California,

I believe we also use the blended gas here in The Peoples Republik of Illinois but I haven't heard our RAT gov. Blago ask for any relief.

[jfreif]

"and Democrats were howling at the Bush Administration for doing nothing about rising fuel prices..."

I believe its the Democrats that won't allow drilling in ANWR, offshore, or, really, most other places in America... such hypocrisy.

[thackney]

REPEAL THE $.50/gallon TAX

I believe the current federal tax on gasoline is 18.4 cents/gallon. The 50 cent tax was proposed but not approved. I may be wrong, but be assured that at least 20 people will point it out if I am.

[Steven W.]

if only you could just refine the stuff that washes up on Bolsa Chica ROFLMAO

[GalaxieFiveHundred]

It is $2.19 a gallon for 87 octane at a Mobil station on PCH, Huntington Beach

Costco in Torrance, $1.99

[Tuscaloosa Goldfinch]

I thought they were in a tent.

[txhurl]

No, I think it's a shoulder and head of hair.

Guess we're gonna have to shakedown FReeper chicks, one by one, until we get a confession.

[rock58seg]

Think of the price you pay for cheap whisky or vodka. $5.00 a quart = $20.00 a gallon. But for commercial alcohol lets say the price is $5.00 per gallon. lets say you use a mixture of $1.50 a gallon gas at a ratio of 9 parts to 1 gas/alcohol, you would have $1.35 gas plus $.50 alcohol = 1.85 per gallon, for the mixture.

[commish]

Wal-Mart in Montgomery, AL - $1.63 :-)

[rintense]

When I filled up last Thursday, I paid $1.76 a gallon (87) in West Michigan. Then, the prices suddenly dropped after Monday, down to $1.71. Today, they are back at $1.81.

[RightWingMama]

I think it's a tent trailer. Some parts of the country call them Pop-up trailers.