Crude Oil Prices Slide ($64.83/bbl)

Associated Press ^ | October 4, 2005 | GILLIAN WONG

[RWR8189]

SINGAPORE -- Oil prices slipped Tuesday after the U.S. government indicated it might release emergency stockpiles of heating oil to combat supply disruptions from recent hurricanes.

But energy futures were not expected to continue their retreat for long, analysts said, because a U.S. petroleum inventories report due later in the week was likely to show that Hurricane Rita hurt supply ahead of the coming Northern Hemisphere winter.

Midmorning in Singapore, light, sweet crude for November delivery fell 16 cents to $65.31 a barrel in Asian electronic trading on the New York Mercantile Exchange. The contract fell 77 cents to settle at $65.47 a barrel on Monday.

November Brent futures at London's International Petroleum Exchange opened at $62.80 a barrel, unchanged from Monday's settlement, before slipping 15 cents to $62.65.

U.S. Energy Secretary Samuel Bodman said Monday that the government was "prepared to do what is necessary with strategic reserves," when asked about the Northeast emergency heating oil supply. Bodman's comments followed earlier indications from the Paris-based International Energy Agency that the group also was willing to consider releasing additional petroleum supplies.

But some analysts have said America's strategic reserve of heating oil, at 2 million barrels, may not mean much to a market about to rebuild its inventories ahead of winter, when demand peaks.

Heating oil retreated a cent to $2.0690 a gallon while gasoline slipped more than half a cent to $2.0559.

U.S. oil inventories are expected to fall for the sixth time in as many weeks when the government releases its petroleum supply snapshot Wednesday. Analysts predict this week's report will reveal the worst of Hurricane Rita.

A Dow Jones Newswires poll showed commercial crude stocks are expected to fall by 390,000 barrels

[RWR8189]

Light, Sweet Crude Oil

10/4/2005 Session Contract Detail for Nov 5

	Last				64.83
	Open High				65.42
	Open Low				65.42
	High				65.49
	Low				64.56
	Settle				65.47
	Change				-.64
	Open Interest				219885
	Volume				0.00
	Last Updated				10/04/2005 06:26:52

Unleaded Gasoline

10/4/2005 Session Contract Detail for Nov 5

	Last				2.0440
	Open High				2.0600
	Open Low				2.0600
	High				2.0600
	Low				2.0370
	Settle				2.0622
	Change				-.0182
	Open Interest				68130
	Volume				0.00
	Last Updated				10/04/2005 06:29:17

Heating Oil

10/4/2005 Session Contract Detail for Nov 5

	Last				2.0635
	Open High				2.0800
	Open Low				2.0800
	High				2.0800
	Low				2.0520
	Settle				2.0809
	Change				-.0174
	Open Interest				69526
	Volume				0.00
	Last Updated				10/04/2005 06:30:34

[Obadiah]

Ah, let me know when it "slides" another $30 or so.

[R.W.Ratikal]

Believe it or not, American gasoline consumers can control the price of gas at the pump. It's easy. It requires no inconvenience, effort, or sacrifice.

1. Cut down on unnecessary driving just a tiny bit.

2. Don't buy gas on Sunday.

3. If possible, make you next car one size smaller.

That's it!

If only a small percentage of American car owners would do the above, gas prices would plunge.

[Obadiah]

Don't buy gas on SundayWhy? What impact does that have?

[thackney]

Don't buy gas on Sunday

How do you claim that helps?

[xrp]

It will make the Lord happy with you. Remember the Sabbath, keep it Holy.

[thackney]

I understand that side of it. I do not understand the claim If only a small percentage of American car owners would do the above, gas prices would plunge.

[thackney]

Oh Happy Days, Affordable Oil is back. < /sarcasm>

[Little Bill]

I noticed that the Brent futures were down to under $60 a bbl. I am not insane enough to do futures any thoughts.

[BlackVeil]

1. Cut down on unnecessary driving just a tiny bit. 2. Don't buy gas on Sunday. 3. If possible, make you next car one size smaller.

Excellent suggestions, and even a small change in behaviour makes a difference.

Also, if people could take up the suggestion of walking to do errands and small shopping trips, it would have an effect on that other national problem - obesity. Even 15 mins activity a day is of benefit.

[mysterio]

I'll bet if the price of crude slips to $40, gas will still be close to $2 per gallon. Wouldn't be surprised if a few refineries got shut down for "repair" as the price drops.

[RWR8189]

I doubt it.

Wholesale unleaded gasoline prices for November delivery are already down to $1.67/gallon.

[mysterio]

That's pre-tax, right? That would make it around $2.05, I think. Not the best, but better, certainly.