Posted on 01/04/2007 8:32:05 AM PST by xzins
Oil prices dip below $57 a barrel as gasoline, distillate inventories rise From Associated Press January 04, 2007 11:00 AM EST NEW YORK - Oil prices slid for a second day on Thursday after the government reported that inventories of gasoline, heating oil and diesel fuel rose more than analysts expected during the last week of 2006.
Light, sweet crude for February delivery fell $1.30 to $57.02 a barrel in morning trading on the New York Mercantile Exchange, after dipping as low as $56.86. On Wednesday, the contract plunged $2.73 to $58.32 a barrel, the biggest one-day drop since Aug. 17, 2005.
Brent crude for February delivery fell $1.23 to $56.73 a barrel on the ICE Futures exchange in London.
Last week, U.S. crude inventories declined by 1.3 million barrels to 319.7 million barrels compared with the previous week, according to a report by the Energy Information Administration. Analysts on average had expected crude stocks to rise by 930,000 barrels, according to a survey by Dow Jones Newswires.
However, gasoline inventories in the U.S. swelled by 5.6 million barrels to 209.5 million barrels. Distillate inventories, which includes diesel fuel and heating oil, increased by 2 million barrels to 135.6 million barrels.
Petroleum product stocks have been rising partly due to sluggish winter demand. Distillate stocks were expected to increase by an average of 1.15 million barrels, while gasoline stocks were forecast to rise by an average of 1 million barrels.
Crude and distillate inventories are still at the upper end of the average range for this time of year.
The inventories report comes a day later than usual due to the New Year's holiday.
Heating oil futures fell more than 1 cent to $1.5734 a gallon on the Nymex, while natural gas prices rose 8.3 cents to $6.246 per 1,000 cubic feet.
Congress hasn't had time to do anything, and the rest of the world doesn't care much about the USA Congress. But, they do pay attention to the Fed, and apparently there was some disquieting news from there yesterday.
Yes, but that didn't stop the moonbats for 6 years claiming that President Bush and Big Oils buddies in congress made the price of oil high. So they won't be detered from claiming democrat control has struck fear in the hearts of big oil.
It doesn't matter what they say. They are moonbats. It is more important to know which movies are just admitted to the National Archives than to hear from them what is really going on in the world. Veblen said real businessmen work in the interstices. The trick is to find the interstices and be there in a timely manner. The moonbats do not point out the interstices for us even though it seems sometimes that they nest in the interstices over the weekend.
How often did you see, hear, or read people being interviewed about the price of gas and blame Bush because he was an "oil man" or had close ties with "Big Oil"? Virtually every day. But Bush has no control over the price of oil or the price of gas. But a large number of people actually believe he controls it and jacked it up to make his buddies rich, and then lowered it prior to the election to help republicans.
It is funny stuff. When you sit down and take a good look at things the President can actually affect, it generates a real short list. He can deliver a speech, a pep talk; he can propose all kinds of things in the State of the Union address, but all that is for Congress to act on or not. But what can he actually do aside from administer programs as funded by Congress? There is the big red button. That's something, but if he pushes we're all done anyway.
Don't forget federal, State, County, and local TAXES on ALL energy.. which is at least as much as energy producer profits.. AND parasitic adding NOTHING..
Then, we taxpayers could get to hose to gov. Ya think they'd get their fiscal houses in order quickly?
According to Mark Steyn, some are...
I WANT MY EIGHTY DOLLARS A BARREL!!!
$55.50
Watch out here. If the price of oil changes too much too fast it will cause dislocation. Doesn't matter if it goes way up or way down, the quickness of the change and the size of the change is what does it. BTW, the Alyeska Pipeline charges $4 a barrel now for shipment from Prudhoe to Valdez and wants to raise it to $5, but they need Gov't approval.
It's worked for thousands of years..on the retail and the wholesale level.
So...should the ice seller...just sell all his ice at previous prices..and then have no ice for days on end..because of this fictional storm?
And it's not stealing...when people are paying for it.
Very well said. It would seem that you have had an epiphany. There is so much emotion and passion in the discussion that facts are not allowed to carry any weight. The truth of the matter is that this country is no longer capable of making rational decisions. Everything has to be based on what sounds good.
The UN report that the bovine population of the planet contributes more to Global warming than man doesn’t get much ink. The fact that the polar ice caps on Mars doesn’t indicate that the sun output is on the increase. The simple fact that the actual output of the sun has been measured to have shown a slow but steady increase over the past 100 years or so is not allowed to confuse my emotions with fact.
What I like is when these oblivicons say “Yeah! Ethanol!”; they are forgetting that if we were to make all of our surplus farm output into ethanol, 1/3 of the world would suffer from near starvation. You can’t provide fuel and feed the world from the same crop at the same time.
Let’s put wind farms off the coast of Mass. Even though they would not be visible from land, Teddy Kennedy says NIMBY. So many locations we could put wind farms, but we may kill some little birds. The list of irrational choices based on emotion seem endless.
So; let us build refineries, let us drill for oil off shore, let us drill for oil on a total of less than 10 acres out of 200,000 acres of natural preserve, let us build many Nuclear power generators, let us do all of the choices so that we are not only energy independent, but not tied to a single technology for our way of life.
Enough of a rant. Thank you for listening. You said it well in far fewer words. I salute you.
Be well.
I like 90% of your argument. Except the windfarm part.
The Cape windfarm can't generate enough electricity in its lifetime to equal the cost of the fish that can't be caught in the Wind farm's footprint should it be built. When you crunch the numbers, using today's fish and energy prices, job loss, need for retraining, and lost business to manufacturers, boatbuilders, chandleries, etc, (it takes 6 full time jobs to support the infrastructure for one full time commercial fisherman. Between 4 and 5 of those jobs are within the same region as the boat) to the people of Cape Cod, buying the electricity elsewhere is easier on the wallet. Why should 400 fishing jobs (equating to about 2,000 local jobs) and massive economic loss hit the Cape so that a for-profit house full of smelly hippies in the Midwest can look smug and become fabulously wealthy? Electricity on the Cape won't be any cheaper than it is elsewhere.
I believe, personally, that the next question to be asked is whether or not we should create new economic losses and entitlement in the name of crafting policy? If the answer is yes, than there you go, I guess.
We could solve, that, however, by building the farm on the Kennedy compound. Eminent Domain time!
Alternative solution. Eminent Domain on the Kennedies! Sweet!
Have a safe weekend!
Tom
>> But more importantly, the raising of the price for gas
>> already in their tanks is legitimate as their replacement
>> cost is going to be that much higher
I don't see this logic. The gas that they currently have on hand was purchased for the cheaper price, long before they decide to raise their prices. Your theory should work in reverse then for when gas prices plummet. I just don't see that happening.
I monitor this just as a hobby. For instance, the price per gallon will almost always raise on a Thursday because they want to "catch" the weekend travelers.
BINGO!!! How can they predict exactly how many people will be on the road on any given weekend as to how it will precisely affect supply and demand? No one can. It's just that their computer business models depict a specific % ROI as extra profit if they can raise the price a few cents every weekend.
FYI: I've correlated the same type information as you have and time lined it to news releases and major storms. All these people that believe the oil and gas markets aren't heavily manipulated, well, are ostriches.
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