Skip to comments.BBC: Oil in biggest fall in two years ~ warm winter helps....
Posted on 01/04/2007 7:37:22 PM PST by Ernest_at_the_Beach
Oil prices saw their sharpest drop in two years, shedding more than $2 a barrel as mild US weather led consumers to use less petrol and heating oil.
US light crude oil fell $2.73 to $55.59 a barrel in New York, falling by over $5 in two days. In London meanwhile, Brent crude fell $2.85 to $55.11.
The US Energy Department said stocks of distillates rose by two million barrels in the last week of 2006.
The fall led oil group Opec to say it might act if prices continue dropping.
Demand for heating in the US is tipped to be 30% less than normal this week, according to forecasts by the National Weather Service.
Analysts said that exceptionally warm weather in the north-eastern US had led to lower demand in the world's largest oil consumer.
As well as the energy department data, the government released figures showing that petrol stocks rose by 5.6 million barrels in the last week of December - considerably higher than the 1.5 million barrels expected.
The price of oil has fallen sharply since peaking above $78 in July, despite Opec threatening to trim its output.
Analysts said that the outlook for commodities in general had become less favourable.
"The global macroeconomic outlook is not so bullish for commodities any more," said Frederic Lasserre of SG CIB Commodities.
Wednesday saw copper reach a nine-month low, falling below $6,000 a tonne, while tin and aluminium have also dropped.
"It looks like someone is making a strategic change in asset allocation, or making a move out of assets in an aggressive fashion," said Bill O'Grady at AG Edwards.
It's the Rove weather machine causing the mild weather in the N/E.
Might help to get inflation under control in the Fed's eyes and get us a rate cut...
Not a mention of the real reason - Iraq being online and gaining strength every day.
(sarcasm on) it must be the warm weather from global warming, not the daily gains of our armed forces in securing Iraq and getting it back into the international community. The media sure doesn't have an agenda now do they.(sarcasm off)
Looks like the froth is going flat. The fundamentals could not support prices in the $60s let alone higher. Even with OPEC trying to tighten it, the West is moving away from a heavy petroleum economy, and the developing world can't afford artificially inflated oil. Boo freakin' who to Middle Eastern dictators, Putin and Chavez.
These oil company lies are getting tiresome.
Global warming will cause mass starvation in the mideast. Oh the horror.
One of the benefits of "global warming".
I'll withhold my judgement "until after the fat lady sings".
When I was growing up in Iowa, all our really big winter storms happened after New Years.
After a really neat blizzard (it's neat if you're a kid) we would get up early in the morning to listen for school closings caused by the storm. When they would list our school and it was "party time".
Payback came when it became time for me to "take off the party hat" and shovel off the snow from the sidewalk and driveway.
I hope this means Hugo Chavez has lost some of his leverage.
So, Global Warming is good for the War On Terror.
I will be cranking up the wood stoves, driving my SUV's and Pick-ups more, and eating beans and brussel sprouts to product farts, all in the name of the WOT!!
I was watching network TV earlier tonight, and I saw a commercial touting Citgo's low heating oil initiative. I was laughing afterwards, since it's obviously not as needed now.
Odd how the price of oil goes down, yet gas prices just went up 12 cents a gallon.
I'll bet those condo fees won't be coming back down....raised supposedly because of high energy costs.
Ahhhhhhhhhh nothing better for the wallet then the warm glow of a "global warming fireplace". Keep those emissions coming cause I'm saving a bundle :) !!!
Wish I would have seen it....Laughter is good for the soul.
Philly suburbs - - it's supposed to hit 72 on Saturday.
Gotta love that "global warming"!
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