Oil Tumbles After Inventory Report

CNN ^ | September 8, 2005: 10:40 AM EDT | staff

[kellynla]

NEW YORK (CNN/Money) - Oil futures fell below $64 a barrel Thursday after a report showed a smaller-than-expected drop in petroleum stockpiles following major disruptions in the wake of Hurricane Katrina.

Crude stocks fell by 6.4 million barrels, gasoline stocks fell by 4.3 million barrels and stocks of distillates decreased by 800,000 barrels, according to the The Energy Information Administration.

Analysts were looking for a drop of 6.4 million barrels of crude, 6.2 million barrels of gasoline and 2.6 million barrels of distillates, according to Reuters.

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U.S. light crude for October delivery slipped $1.27 a barrel to $63.10 on the New York Mercantile Exchange.

[kx9088]

WE'RE DOOMED!
Falling gas prices will spike more SUV sales and more car travel, increasing greenhouse gases and global warming, heating the oceans and melting the ice caps, causing more hurricances and floods, and killing millions of poor innocent black people because George Bush wants to destroy the world!

There, fixed it for ya.

[Dazedcat]

Heading down? Can I get a refund then?

[pigsmith]

"And RATS are on a suicide watch."

I'll bring the popcorn.

[SAJ]

Won't be the next figures that will be important, it'll be the ones 2 weeks hence. The name of the game now is damage assessment for the underwater pipe.

[Chuck54]

I've always contended when a certain price for gasoline is reached a tipping point would occur. People would just say, enough is enough, and quit pleasure driving, become very conservative, walk short distances, buy a bicycle, etc and supplies would increase, therefore driving down prices.

I didn't have an exact price in mind, but the past week indicates it may be the $3.00 per gallon price. Could be lower but time will tell.

The exciting part of this is the oil cartel may be shooting themselves in the foot with the high prices and the public may enjoy walking, biking, less driving etc. Hope so.

[Blood of Tyrants]

Those +$3/gal prices ought to be tumbling any time now.

Yep, any time.

Yea, right.

[NormB]

People are driving less. I know this, that if my wife and I talk about driving less or making less trips, then that probably means that every family in the US is having the same conversation, and at least 75% of them will make slight changes to their driving habit.
Slight changes add up to a noticible decrease in demand.

Price target according to my crystal ball is 2.50 a gallon by October.

[cantfindagoodscreenname]

I've always contended when a certain price for gasoline is reached a tipping point would occur. People would just say, enough is enough, and quit pleasure driving, become very conservative, walk short distances, buy a bicycle, etc and supplies would increase, therefore driving down prices.

But, if the oil companies respond by lowering prices and then people resume their old driving habits, won't the prices just go right back up again?

[BlackjackPershing]

Who cares how much crude they pump? We can only refine so much. If Bush wanted to be bold, he would issue an EO to suspend environmental regs on refinery construction and related industries for 6 years, in order to get new refineries online and under construction. The goal 12 new refineries--that's 2 per year.

[Carry_Okie]

Something to do with a rather sharp reduction in commuter traffic along and through the Gulf Coast?

[COBOL2Java]

Fairly good primer on the economic concept of elasticity: ELASTICITY. Gasoline demand tends to be inelastic, but if as you say people discover adequate substitutes for driving, that may change.

[quantfive]

"Be good to see the bubble burst. Have to wait and see."

I wouldn't hold your breath.

[kellynla]

Ya know my father was with Black Jack when he was down in Mexico chasing Poncho Villa around and then on to France in WWI...and no, I don't know if the "pig story" in the Philippines is true or not. LOL

I agree with you though about the refineries...there hasn't been a new refinery built since 1976!

[atomicpossum]

I wouldn't hold your breath.

How could you hold my breath?

[BigMacGOP]

Prices almost unchanged on the day...

[Coop]

Prices already are tumbling. I saw a $.25 per gallon drop at a couple of stations in our area over about 48 hours.

[.cnI redruM]

That's Bush's fault too. He controls oil prices with a playstation joystick. The Crazy Prankster.

[Coop]

Something to do with a rather sharp reduction in commuter traffic along and through the Gulf Coast?

Which was almost certainly offset by the constant hum of generators along that same corridor.

[NickatNite2003]

Thinking about this thread, and being reminded
of the old round pumps with big bulbs on top,
instead of the rain roof supporting column ones
we have now, or the older box like ones...i thought
"and oh yeah, back then, *all* of the gas stations
were 'Full Serve'...i can't remember how long it's
been since i've been to a gas station that had
a 'Full Serve *line*, much less was *all* 'Full Serve'..
It's gortta be at least 7 or 8 years, and that station has since shut down....

When was the last time you can remember going to a gas station and getting your gas pmped, your windows cleaned,
your fluids topped off, and your tires checked, without getting out of your car?

[atomicpossum]

We're down to $2.89/gal now (yesterday), from a high of about $3.30.