Posted on 08/29/2006 7:07:13 AM PDT by shrinkermd
LONDON (AP) -- Oil prices fell below $70 a barrel Tuesday as Tropical Storm Ernesto veered away from the oil and gas region of the Gulf of Mexico, easing concern that output would be disrupted. Light sweet crude for October delivery on the New York Mercantile Exchange fell 85 cents to $69.76 a barrel in electronic trading by afternoon in Europe. It last traded below $70 on Aug. 18.
The fall extended a $1.90 drop on Monday, when it settled at $70.61.
October Brent crude at London's ICE Futures exchange dropped 86 cents to $69.96 a barrel.
Royal Dutch Shell PLC said it plans to return workers to rigs and platforms in the Gulf of Mexico after Ernesto, which struck southern Cuba yesterday, moved northeast on its way to Florida and South Carolina. That means the storm will bypass the eastern and central gulf, where most U.S. offshore oil and natural-gas facilities are located.
Concerns about threats to supply were further eased when BP PLC said it had restored output from its Prudhoe Bay field in Alaska to about 200,000 barrels a day, half the daily production capacity.
The partial production shutdown at the giant Prudhoe Bay field in the U.S. state of Alaska is expected to make an impact on U.S. oil inventory statistics due Wednesday.
U.S. commercial crude stocks are expected to have fallen by an average 1.2 million barrels in the week to Aug. 25, a Dow Jones Newswires survey of eight analysts showed.
Gasoline inventories likely drew 900,000 barrels as the country approaches the end of the summer driving season, while distillate stocks, comprising heating oil and diesel, probably rose 1.2 million barrels, the survey showed.
Traders also remain watchful of other market movers, such as Iran's stand-off with the West over its nuclear program.
Traders are concerned that Iran, the world's fourth-biggest oil producer, could block oil exports if the United Nations imposes sanctions over its nuclear program. Tehran faces a Wednesday deadline to halt uranium enrichment or face possible economic and diplomatic sanctions, but has so far refused any immediate suspension of its nuclear program.
"Moving in the international framework is not a matter of concern for us," government spokesman Gholam Hossein Elham said Monday.
Iran is a leading global oil exporter and has made threats in recent months to choke off the Strait of Hormuz -- where some 20 percent of the world's supply passes through every day -- in retaliation for sanctions.
In other Nymex trading, natural gas futures declined 28.2 cents to $6.190 per 1,000 cubic feet, while gasoline futures rose marginally to $1.7910 a gallon, and heating oil futures rose 0.1 cent to $1.9660 a gallon.
Uh...no. I was only pointing that just because FR is not 100% fair and balanced, the media do not get a free pass. I didn't "read into" anything.
I am paying $3.11 9/10 gal. for regular, here where I live in Pasco, Washington.
want a good laugh.... check out this website... http://www.thepeoplescube.com/
I paid $3.56 a gallon in Hawaii (big island) last week, then went to the Costco there and paid $3.19.
Its gone from 2.87 to 2.63 in the last month here in PHX.
Very good!
gas at Costco still at $3.05 today......Spokane, wa
"Lower gasoline prices will cause great distress among the libs."
And certain Freepers who think it should go to $7-$10 a gallon!
Ed
Wally in Greenwood Indiana at $2.52 tonight, and 3 cents LESS with a Wally Card!
Put me down for about half. Prices should stabilize in the low to mid $30s.
there's some GREAT deals out there on nice used motorhomes with big gas engines (8-9 mpg)
I'm pondering a purchase....
$2.60 in Montgomery, IN .13 off with Chase freedom card.
Compared to what others are saying they are paying for gas, it appears that here in Washington State, at least on the East side, and more so in the Tri-Cities, we get ripped off royaly.
You bet there is more than meets the eyes with this story.
There was "A surprise increase in Inventories". Sounds like George $oreA$$ and his hedge fund buddies have been playing games with the futures market.
SAN FRANCISCO (MarketWatch) -- The Energy Department said crude supplies rose 2.4 million barrels to 332.8 million for the week ended Aug. 25, contrary to expectations for a decline. Motor gasoline inventories stocks rose for a second week in a row, up 400,000 barrels to total 206.2 million barrels. Distillate supplies climbed 1.3 million barrels to 136.8 million. Following the news, October crude fell 61 cents to $69.10 a barrel. September unleaded gas shed 2.92 cents to $1.76 a gallon and September heating oil was at $1.93 a gallon, down 1.32 cents.
PrintDisable live quotesRSSDigg itDel.icio.usBy Myra P. Saefong Last Update: 10:34 AM ET Aug 30, 2006
Oil prices fell Wednesday after the U.S. government reported a rise in oil inventories, easing supply
Light sweet crude for October delivery fell 51 cents to $69.20 a barrel in morning trading Wednesday on the New York Mercantile Exchange.
The decline extends two days of sharp drops that brought oil futures to $69.71 a barrel on Tuesday, roughly 10 percent below their level of three weeks ago.
Crude inventories rose 2.4 million barrels to 332.8 million barrels in the week ending Aug. 25, or 6.2 percent above year-ago levels, the EIA said Wednesday. Gasoline inventories rose 400,000 barrels to 206.2 million barrels, or 4.6 percent above last year's levels.
http://biz.yahoo.com/ap/060830/oil_prices.html?.v=10
Or, maybe they all got tired of holding or buying in the face of economic reality.
1.76 gasoline October contract--BTV (8-30-06 @ 1 PM EST)
Nobody has mentioned it, but it was announced that some Oil Traders working for BP are currently under investigation for illegal manipulation of the market. I believe this sent a shiver down the spine of the speculators and the Enron-like orgy is over.
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