Oil Prices Fall(Surprise inventory build)

money.cnn.com ^ | staff

[mnehring]

Or as BOR(e) puts it, there has to be one person out there controlling the price.. lol.. take a break off your show bill and take an Econ 101 class.

[RSmithOpt]

I'm in that boat, myself, mate!! All my weekly extra trips, other than to work, usually combine 3-4 stops to take care of my usual stuff in a circle on the same day....one of them normally a fill-up. Weekly trips down from 4 to 1 or 2.

[jec41]

They have really dropped!!! At the present they are;

PETROLEUM ($/bbl)
PRICE* CHANGE % CHANGE TIME
Nymex Crude Future 73.90 -.71 -.95 10:38
IPE Crude Future 73.87 -.77 -1.03 10:58
Dated Brent Spot 73.55 -1.03 -1.38 11:09
WTI Cushing Spot 74.40 -.21 -.28 10:05

[kellynla]

Unless you see something on the link you provided I don't according to CNN/MONEY,

"U.S. light crude for June delivery fell 81 cents to 73.80 a barrel on the New York Mercantile Exchange. Crude was trading down 16 cents just prior to the report, within striking distance of its all time trading high of $75.35 set April 21."

[BooksForTheRight.com]

So when gas prices fall, albeit temporarily, the leftist-dominated media will not report that.

[dirtboy]

'Analysts' were blindsided as you put it, because market projections usually are six months to a year out. The changes in supply by the President in the Strategic Reserve changes were almost immediate and unexpected, and thus, weren't a part of the speculation created months or even weeks ago.

The analysts had the same news we did. In addition, Bush's Strategic Reserve decision had no bearing on refining capacity. And his subsequent decision to not require reformulation will take time to alter refinery operations.

Once again, refineries had to have produced five percent more gasoline every day last week than motorists were using. That is a large swing in one week.

[Grampa Dave]

Also, the annual conversion of the refineries from winter gasoline to summer blends.

Just go back in Free Republic to see how every Mar/Apr we have this decrease in the supply of gasoline as the refineries do some close downs to convert their plants to the summer blend.

One of these days we will read about George $oreA$$ who recently financed the signs for the Illegal Alien Marches on 1 May manipulating the gasoline futures to pay for those signs and other anti America schemes.

[dirtboy]

Or as BOR(e) puts it, there has to be one person out there controlling the price..

Oh, I don't think one person is controlling the price. But two or three key entities can withhold key information and use that to manipulate the futures markets.

[dirtboy]

Also, the annual conversion of the refineries from winter gasoline to summer blends.

Once again, the analysts have that history to factor into their projections. Why where they off 2.8 million barrels in one week?

[Realism]

was it just one, "someone" or were there a whole bunch of "someones" who conspired to hold inventory

I blame that one dockworker in Nigeria who is taking way too many personal days. And no one says a thing to him about it.........

[pnz1]

Not till the Democrats come out with a press conference on how they solved the problem of high gas prices..

[r9etb]

It's getting clearer that at least part of the recent price spike is due to market manipulation, IMO.

Agreed, Mr. Limbaugh's recent fulminations on the matter notwithstanding. It's one thing to see increased prices due to increased crude costs; but for oil companies to realize double-digit percentage increases in profits at the same time ...

One need not accuse the oil companies of open collusion here; rather, it's a fairly obvious move on everybody's part to pad their profit margins in an environment where prices are going up anyway. It's more an "everybody plays along" sort of thing.

[mnehring]

You seem to be confusing gasoline and oil costs in most of your arguments. The problem with your argument is that you are relating downstream costs in your statements with 'refining capacity' and upstream inventory (the price of oil)

They are related but they are two separate items. The demand for upstream inventory isn't just refined gasoline but also a slew of other petrochemical products. If you look at XOM's quarterly statement, for example, you'll see that almost 1/3 of their upstream revenue was generated from non-gasoline, petrochemical wholesale production.

[kellynla]

I just post the news. LOL
I'm still budgeting for $5/gal gas this summer.
Gas prices ALWAYS go up Memorial Day weekend.
and stay high until after Labor Day.

[zeugma]

But ... but ... but ... I thought there was a severe SHORTAGE of gasoline. What gives?

I don't think I've heard anyone seriously talking about a shortage of gas, other than the normal market distortions that government mandated special formulations cause. The price of oil is driven more by speculation than anything else these days. Actual supply/demand pricing has been essentially our of the window since the last presidential election. The speculation is being driven by some political manipulation (by Soros and co), the press (hyping everything-as usual) and the situation on the ground in the middle east (Iran, hamas, etc).

[OXENinFLA]

http://www.bloomberg.com/energy/

[RSmithOpt]

Ever ponder if Iran and others are running their mouths are actually creating the fear they need to jack the price to help their economies? Venezuela and Iran, mainaly. From what I hear, read and know from an American who migrated from Iran i 1974, Iran's economy ain't doing well. Iranians are holding on to their money and the richer are moving it out of country. Most Iranians do not like their current government at all.

[Realism]

the annual conversion of the refineries from winter gasoline to summer blends.

Don't you find it somewhat strange that the USEPA required changeover effects gas prices around the globe?

[JackDanielsOldNo7]

I also bag my lunch so I do not have to drive. Plus the money I save not going out is helping.

[CedarDave]

It's not a surprise, everyone knows that refineries have been closed due to maintenance because last fall it didn't get done and now they are. 25% is a built in speculator fear factor because of Iran, Nigeria and Venezuela and these three countries are playing it to the max with the daily rhetoric.

BINGO!!