Posted on 11/05/2004 12:57:49 AM PST by Cincinatus' Wife
VIENNA, AUSTRIA - Oil futures prices plunged by more than $2 a barrel Thursday, continuing a sell-off that began last week amid rising U.S. supplies of crude and expectations of a surge in heating oil production before winter arrives.
Also helping to push prices below $49 a barrel was an Energy Department report showing a larger-than-expected increase last week in the amount of stored natural gas, which was already abundant.
"This is acting like a bear market," said Ed Silliere, vice president of risk management at Energy Merchant in New York.
Silliere said there was a large wave of selling among well-financed institutional investors, adding to the downward momentum.
Light, sweet crude for December delivery fell by $2.06 to settle at $48.82 per barrel on the New York Mercantile Exchange. It was the first time prices settled below $49 a barrel since Sept. 24.
Oil prices have fallen $6.35, or 11.5 percent, since last Tuesday, when New York futures settled at $55.17 per barrel, matching the record settlement price first set Oct. 22.
"The market does have some downward momentum," said Steve Turner at Commerzbank in London, citing fears that the global economy is starting to slow, which could shrink demand. London Brent was down $1.55 at $46.01 on the International Petroleum Exchange.
The U.S. Energy Department reported Thursday that natural gas in storage rose by 44 billion cubic feet to 3.29 trillion cubic feet, or 7.8 percent above the five-year average for this time of year. December natural gas futures, which are up more than 75 percent from a year ago, fell 55.3 cents to $8.199 per thousand cubic feet.
December heating oil was down 5.17 cents at $1.3721 per gallon, and gasoline futures slid 5.03 cents to $1.2774 per gallon.
The decline in oil prices mainly reflected the market's reaction to the Energy Department's Wednesday report, which showed that commercially available stocks of crude oil in the United States rose by 6.3 million barrels to 289.7 million barrels last week. A week earlier, the agency reported a 4 million barrel rise.
Traders speculated over what President Bush's re-election would mean for energy policy, with analysts saying he is likely to maintain a fossil-fuel friendly policy and bolster U.S. strategic reserves, already at 670 million barrels.
• In Iraq, militants have threatened to strike oil installations and government buildings if the Americans launch an all-out assault on Fallujah. Exports from northern Iraq have already been suspended up to 10 days after saboteurs blew up a pipeline. • In Africa's largest producer Nigeria, thousands marched in support of a strike called Nov. 16 to protest domestic fuel prices.
Here in the Northeast where we use heating oil for our furnaces, $2+ per gallon may be a survival issue for many people. A drop of any kind is good, another $15 would be truly good news.
It seems he may have lost a bundle on those oil futures as well. HeHeHe.
Case closed!
I paid $1.78 a gal. in Gilmer, Texas yesterday. In NE Texas it usually runs about $1.87 a gal. I think we will see prices get back in the $1.70's range by the end of the year.....Hopefully.
Soros was the first one to sell the oil futures. I'll bet he made a bundle, and the Euroweenies that he talked into helping him took the bath.
You're lucky, at least, that you have oil heat - I'll probably be paying 2.5 to 3 times as much per gallon to run our propane furnace, for half the heat content per gallon than heating oil.
This whole thing was ALL about who would win The Presidency!These oil prices have been ARTIFICIALLY inflated by a few traders!!First it was the trouble in Venezuela,then it was hurricane season,then it was the Russian oil co!!!!!You know what,it's all a great load of HORSESH*T to shake us down!!!!!!!!!!!!!!!
Because it NEVER belonged where it was!!!!!!!!!!!!!!!
That's Right!"W" Took The Gloves Off Yesterday!!!!!!!!!!!!!!
PLENTY!!!They thought they could use RIDICULOUSLY high oil prices to defeat"W"!!!!!!!!!!!!!!
I think he made that ABUNDANTLY clear yesterday!!!!!
Mega Dittos to that!My oil contract for this season is almost 50% higher than last year's!!!!!!!!!!
He was great!
I think he got wind that some Texas Freeper was going to clean his clock ... ;o)
I'm with you. When can we expect to start seeing this at the pumps?
Yeah... but it was a buck twenty before we invaded Iraq (not trying to make any connection, just for timeline purposes.)
1. Lavish increase of incomes!
2. Multiple floods of cash flow!
3. Supernatural debt-cancellation!
4. Thousandfold return on seed sown.
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