Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Early Signs of Petroleum Demand Revival in U.S.
Rig Zone ^ | March 03, 2009 | G. Allen Brooks

Posted on 03/03/2009 10:06:48 AM PST by thackney

Crude oil prices had a good week last week, closing up $5.82 to $44.76 a barrel on the futures market. This rise amounted to a healthy 14.95% increase, although oil prices had actually advanced higher during the week, but fell on Friday when both the details of the Obama administration's budget impact on the energy industry became clear and the nation's GDP estimate for the fourth quarter was revised sharply lower.

For the week, the oil price rise was driven by a number of factors -- surprising strength in domestic oil inventory data, a positive report about OPEC's cutback compliance and signs that oil demand is rising. When the U.S. Department of Energy reported its weekly oil inventory data last Wednesday, crude oil inventories only rose by 717,000 barrels, about half the 1.2 million barrel rise anticipated by analysts. Gasoline inventory fell by a surprising 3.3 million barrels, although refinery capacity utilization was down reflecting industry efforts to take advantage of weak petroleum demand to undertake refinery turnaround operations early.

Another positive was the report from Petrologistics, a tanker tracking company, suggesting that OPEC members were achieving about an 89% compliance with the cartel's December 2.2 million barrel a day production cutback. At the same time, Dubai announced it was reducing further the amount of oil it will supply to refiners in Asia in March, which has revived hope that OPEC may be positioning to institute another production quota cutback at the body's March 15 meeting.


TOPICS: News/Current Events
KEYWORDS: energy; oil
I'm guessing this article was written real early yesterday before oil dropped 10%.
1 posted on 03/03/2009 10:06:48 AM PST by thackney
[ Post Reply | Private Reply | View Replies]

To: thackney

Yep. It’s $40 and change now.


2 posted on 03/03/2009 10:11:18 AM PST by b4its2late (Ignorance allows liberalism to prosper.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: thackney

Do you think that OPEC will continue to maintain decreased output levels?


3 posted on 03/03/2009 10:12:53 AM PST by pappyone (New to Freep, still working a tag line.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: pappyone

I think Saudi Arabia will until the prices rise. And Saudi Arabia made the biggest production cut.


4 posted on 03/03/2009 10:15:37 AM PST by thackney (life is fragile, handle with prayer)
[ Post Reply | Private Reply | To 3 | View Replies]

To: thackney

Oil has been trading in a $38-44 range for weeks, with $40 as a base. Whenever it gets on one side of $40, it adjusts back the other way.

What early signs? Oil is about $41/bbl today. Well within its recent trading range.

Drop by again when it goes to $60 and I’ll listen to you. Come back when it goes to $30 and I’ll ridicule you.

You = author of the article and not the poster thereof.


5 posted on 03/03/2009 10:18:35 AM PST by ziravan (Hiring a democrat to cut taxes is like hiring a pedophile to babysit.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: thackney

Manipulated supply side, to try and saved the socialist like Hugo Chavez ... not going last, since there is no increase in demand. All I see locally is shuttered businesses — The local GMC dealer is the latest.


6 posted on 03/03/2009 10:20:58 AM PST by Tarpon (It's a common fact, one can't be liberal and rational at the same time.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: ziravan
Oil markets are driven more by psychology than anything else. Wednesday inventories and the “Commitment of Traders” report have more to do with the price of fuels than the actual price of crude oil.
7 posted on 03/03/2009 10:22:10 AM PST by Eric in the Ozarks
[ Post Reply | Private Reply | To 5 | View Replies]

To: thackney

Diesel is finally less than Super! Yay!


8 posted on 03/03/2009 10:22:34 AM PST by VeniVidiVici (Yes, Gorbachev is better than Obama. At least Gorbachev admitted he was a Communist)
[ Post Reply | Private Reply | To 1 | View Replies]

To: VeniVidiVici

I’m glad you found some joy. These days take it anywhere you can find it. I thought I lost 2 pounds until I realized someone had messed with the scales. I had joy for about a minute, then depression hit when I found I had put on a pound.


9 posted on 03/03/2009 10:41:19 AM PST by Jubal Madison (Sic Semper Tyrannis)
[ Post Reply | Private Reply | To 8 | View Replies]

To: pappyone; thackney

I half filled my tactical Diesel reserve today (@ 1.95/gal). Depending on how I feel tomorrow, I may top it off. If I don’t share with my wife, I’m good for 3 months (6, if full).


10 posted on 03/03/2009 5:51:45 PM PST by Paladin2 (No, pundits strongly believe that the proper solution is more dilution.)
[ Post Reply | Private Reply | To 3 | View Replies]

To: thackney; All

Does anybody here have a breakdown of where we get out oil and in what percentages? I need the numbers to compare to the numbers a co-worker showed me in “American Legion” magazine. Can anybody help me here? It says we provide 42% of our own oil and the rest from other countries

Thanks!
sneakers


11 posted on 03/04/2009 5:22:21 AM PST by sneakers
[ Post Reply | Private Reply | To 1 | View Replies]

To: sneakers

Energy Information Administration is the best source of historical energy data, in my opinion.

Where we get our oil that we process in our refineries:
http://tonto.eia.doe.gov/dnav/pet/pet_move_impcus_a2_nus_epc0_im0_mbbl_m.htm

Where we get ALL of our petroleum products: (crude and already refined gasoline, etc)
http://tonto.eia.doe.gov/dnav/pet/pet_move_impcus_a2_nus_ep00_im0_mbbl_m.htm

Total amount of petroleum products that we use in the US:
http://tonto.eia.doe.gov/dnav/pet/pet_cons_psup_dc_nus_mbbl_m.htm


12 posted on 03/04/2009 5:43:46 AM PST by thackney (life is fragile, handle with prayer)
[ Post Reply | Private Reply | To 11 | View Replies]

To: thackney

Thanks thackney! I MUCH appreciate it!


13 posted on 03/04/2009 5:52:00 AM PST by sneakers
[ Post Reply | Private Reply | To 12 | View Replies]

To: sneakers

Glad to help.

The description on the first link was misleading. That is where our imported oil comes from. We also produce domestically, of course.

http://tonto.eia.doe.gov/dnav/pet/pet_crd_crpdn_adc_mbblpd_m.htm


14 posted on 03/04/2009 6:35:53 AM PST by thackney (life is fragile, handle with prayer)
[ Post Reply | Private Reply | To 13 | View Replies]

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson