Oil rises on falling gasoline supply (Crude inventory down 1.3 million barrels. Thank a Democrat)

CNN ^ | 7/30/2008 | Kenneth Musante

[tobyhill]

NEW YORK (CNNMoney.com) -- Oil prices rebounded from their lows Wednesday after a surprise decline in the nation's gasoline stockpile countered investor sentiment that U.S. demand was falling.

Light, sweet crude for September delivery was up $1.11 to $123.30 a barrel in electronic trading. It had traded as low as $120.97 earlier in the day.

A report from the Energy Department showed a 3.5 million barrel decrease in gasoline supplies, and a decline of 100,000 barrels of crude oil.

"That gasoline data was a positive surprise....that is taking crude up," wrote Tom Orr, head of research at Weeden & Co. in an e-mail.

Analysts polled by energy research firm Platts had expected to see a 400,000 barrel increase in gasoline supplies, and a decline of 1.3 million barrels of crude oil.

[DManA]

Consumption is way down and now we find out the supply is also shrinking. How did the danged speculators accomplish that?

[WakeUpAndVote]

Aren't refineries switching to produce heating oil now?

[mysterio]

As long as oil is the only player in the fuel game, the sky’s the limit.

[Road Warrior ‘04]

Oil prices rebounded from their lows

Like that's a good thing? CNN quite happy to report oil going up...again!

[backhoe]

[tobyhill]

You just nailed the problem, we can't just reduce our consumption out of the problem without creating overall economic problems, we need increased supplies.

[Redbob]

"CNN quite happy to report oil going up...again!"

Of course they are:
the limousine liberals hate it when the rest of us clog the roads with our plebeian machines...

[PSYCHO-FREEP]

Consumption is NOT way down. It has only gone down about 2% since the first of the year. Speculators are barely 20% of the market and have minimal effect on the trend.

It’s all about refinery capacity and demand. Demand is still very high and expected to increase by the end of this year.

[tatsinfla]

makes sense right? consumers not using as much so the refineries don’t produce as much. afterall gasoline does have a shelf life right? so actually no matter if we conserve or not they will get us since its all excuses anyways....

[houeto]

"That gasoline data was a positive surprise....that is taking crude up," wrote Tom Orr, head of research at Weeden & Co. in an e-mail.

Huh?

[tobyhill]

This clown makes no sense and CNN threw it out there to try and mitigate the damage the no-drill Rats will face when prices go way back up.
Crude down 1.3 million barrels is what is causing crude prices to go up.
There was 1300 articles this morning before the inventory report about how reduced consumption has led to lower prices but then the MSM got nailed with this little weekly report.

[DManA]

Something doesn't add up. Miles driven are down, consumption is up?

With high gas prices taking a big bite out of family budgets, Americans drove almost 10 billion fewer miles in May 2008 than in May 2007,

http://abcnews.go.com/Business/BusinessTravel/story?id=5465036&page=1

[jveritas]

I think that the government should not publish any accurate forecast about the oil and gas supply. In fact they should use the same tactics as the crazy oil speculators are using and just speculate. Of course they need to speculate in a positive way i.e. say that supply is abundant.

[DGHoodini]

This is a corrupt and artificial “drop” in inventory, as they recently took a major refinery offline for “maitenance”. This is not about more oil being consumed. This is about less supply being processed.

[mountainlion]

We are setting on the worlds largest untapped oil supply. If the demorats had any idea that they could be dipping into the profits of several trillion barrels of oil and no one would really notice. The demorats have blinders on supplied by the rich “elite” hollywood radicals. Several states have a severance tax that pays the state enough so the people don’t have to pay state taxes.

[tobyhill]

How do you account for the 1.3 million barrel drop in crude inventory?

[DManA]

Milton Freedman said he’d prohibit the Federal Government from collecting ANY economic data. They just use it to justify the mischief they cause.

[Red in Blue PA]

In 2000, 37 percent of the people in the oil futures market were speculators, Dorgan said. Now, speculators make up 71 percent of the market.

http://www.npr.org/templates/story/story.php?storyId=92793924

You may not like the source, but facts are facts.

[RightWhale]

Chicago just bought NYMEX. This is actual news. Might be that corn just bought petroleum or grain bought butter. Game over: biofuels won.