Oil Drops $1, Imports Swell U.S. Supply ($53.15/bbl)

Reuters ^ | April 27, 2005

[RWR8189]

4/27/05 Session Contract Detail for June 2005

	Last				53.15
	Open High				54.10
	Open Low				54.05
	High				54.40
	Low				52.85
	Settle				54.20
	Change				-1.05
	Open Interest				258126
	Volume				0
	Last Updated				4/27/05 11:09:23

[RockinRight]

And gas prices will go down when?

[hawkaw]

This huge 5.5 million increase in crude stocks, is, in my opinion huge news if one is looking for the price to drop. I hope this adds to some negative momentum in this commodity market.

[keysguy]

They might come down for a while but long term we are screwed.

We can thank the enviro/rat/wackos. But then you have been hearing about that on all the MSM nets and in Congress from our people haven't you? Ohhhh I guess not. They must have forgot to establish blame where it belongs, gee I'm so surprised!!!

[Eric in the Ozarks]

I think there was a draw on gasoline stocks, along with a build in crude.

[1rudeboy]

Ceteris paribus, I'd say in about a month.

[SoftballMominVA]

uhhh.... when the prices of crude drop to below $30 a barrel--maybe--possibly--probably not

[kellynla]

http://www.gasbuddy.com

What folks don't realize is that service stations pay for their gas when they receive it and thus when they have to pay more they naturally raise the prices and leave the prices up until they recover their costs/profits.
Hence there is a lapse before the price at the pump drops.
The prices in CA which has some of the highest in the nation have dropped a dime in a week. But I'm already figuring that the price will be 2.50/gal this summer if not more.

My suggestion: cut your driving, use Gas Buddy to find the cheapest gas and buy oil stocks.
Make a lemonade out of a lemon. Exxon/Mobil stock has risen about FIFTY PERCENT in a year.
No reason why you can't profit from the higher prices too. :-]

[Eric in the Ozarks]

Valero; 380 percent growth in its stock value over the past 10 years.

[lewislynn]

How many gallons to a barrel of crude?

[keysguy]

42 I think.

[Iscool]

Adel al-Jubeir, foreign affairs adviser to Saudi Arabia's Crown Prince Abdullah, said the kingdom was willing to provide as much crude oil as buyers wanted, following a meeting between President Bush and Abdullah in Texas.

It must be rough on the administration to deal with all these news sources...As I understand it, the prez has been trying to convince people that the high price is due to supply and demand...But, the A-rabs seem to be calling him a liar...They say they got more crude than they can sell...

Then they tell us they can't refine enough of the stuff...But, very few people heat with oil anymore...Enough plastic producing industry has moved to China and Mexico that the industrial demand has to be far less than it was...

And it's good to see that the U.S. oil company prices are keeping in line with OPEC and making record profits...Even tho it doesn't cost them any more to refine the stuff than it did two years ago...

Let's see...How many congresscritters and administration people own stock in oil companies??? All of them, you say??? Naw, that couldn't be the problem...

[conservativewasp]

55

[keysguy]

We have 55 gallon drums over here but I thought the European crude oil was measured at 42 gallons per barrel. Maybe I am wrong.

[lewislynn]

42 I think.

1 barrell (42 gallons) of crude @ $53.00 a barrel = $1.26 a gallon.

How many gallons of gasoline to a barrel of crude?

[RockinRight]

cut your driving-can't do that. Traveling sales job. Less driving = less $$

use Gas Buddy to find the cheapest gas-I'll check this out?

buy oil stocks-I plan to do that

Thanks!!

[conservativewasp]

I think we're partially responsibile for the problem. As I understand it Bush signifigantly increased the amount of oil in the Strategic Petroleum Reserve over the last 2 years. We've also increased normal reserves, between the 2 we have 90-120 days supply on hand. That could be stretched out quite a bit, long enough for us to deal with anyone closing the sea lanes, Red China, Iran, etc. This is Bushes "strategery". I've been waiting for the Libs to balme him for helping Big Oil increase profits, but I don't think they can as it is a National Security issue.

[conservativewasp]

I stand corrected, it's 42.

[RetiredArmy]

We can have 300 billion barrels a day, but until we get more refineries in the US, there is going to be a supply shortage as the only refineries left have to keep changing around to make the 9,000 different enviro required blends.

[AdamSelene235]

And gas prices will go down when?

When a Global Depression reduces demand, assuming the deflationary effects of the credit implosion outweigh the FedGov's efforts to inflate.