Crude rises as U.S. inventories fall unexpectedly

Market Watch ^ | 05/13/09 | Moming Zhou & Nick Godt

[TigerLikesRooster]

Crude rises as U.S. inventories fall unexpectedly

By Moming Zhou & Nick Godt, MarketWatch

NEW YORK (MarketWatch) -- Crude-oil futures were slightly higher Wednesday, with gains capped as investors looked past a surprising decline in last week's U.S. crude inventories and focused instead on weak demand and lower refinery production levels.

The decline in crude inventories was not driven by higher demand but by lower imports, Energy Information Administration data showed. Meanwhile, the decline in gasoline inventories was driven by lower production, with refineries reducing their utilization level to the lowest since September.

Total petroleum consumption was still markedly lower comparing with a year ago. A separate report released earlier showed that retail sales were weaker than expected, which also weighed on oil prices.

[TigerLikesRooster]

Ping!

[mywholebodyisaweapon]

Obama’s fault. He owns it now.

[Virginia Ridgerunner]

Doesn’t sound like pure supply and demand to me, but pure market manipulation.

[Obadiah]

In the sense that refinneries are now intentionally withholding production, then yeah, that is market manipulation.

[Diana in Wisconsin]

“Total petroleum consumption was still markedly lower comparing with a year ago.”

Let’s see if I can figure this one out.

No job. No job to drive to. No money for gasoline to go to job or anywhere else. No car, since the visit from The Repo Man.

Less trucks on the road moving consumer goods to stores because...no jobs, no money to buy anything.

Yep. 0bama owns this round of gouging. Jerk.

[TigerLikesRooster]

Right. Somebody has wad of spare cash and wants to play the oil future market.

[knarf]

Here we go again with "Why is my gas so expensive?"

IMO ... nothing is wrong with markets or industry .. we are being killed by taking away our buying power.

I'm sure there are a thousand agencies at work and each agency has about a hunnert tributaries ... plausable deniablity.

The only way to keep America from working and generating income is to close off as many avenues by which we GET to our income as possible.

I started using my tinfoil for lining the stove and not wasting it on my addled? brain.

[nyconse]

Right...always an excuse. More games by Wall Street...they have bought off the government and now are back to business as usual.

[Oatka]

. . . [fill in the blanks] were weaker than expected,

The theme song of the "experts" on the current economy.

[nyconse]

You know it is so short sighted by the Wall Street crowd because it invites regulation-especially of hedge funds and futures.

[Scythian]

China, China, China — tick, tock, tick, tock ....

[Paladin2]

My tactical reserve stands at an all time high.

[Las Vegas Ron]

Inventories fall unexpectedly?

Wonder if they'll run GM the same way

[syriacus]

The decline in crude inventories was not driven by higher demand but by lower imports, Energy Information Administration data showed

Would drilling off shore help?

[nyconse]

Yep...unfortunately, you are correct.

[org.whodat]

The government needs to take the proper steps to stop the ability to manipulate the futures market. Make the buyers take delivery within ten days and have them pay for and pay the transportation costs on the day of purchase.

[Concho]

Damn right! Shut down the ships till they get the price up where they want it. I did talk to a driller in SW Kansas a week ago and he said they needed $55 oil in order to make it profitable to drill because of all the regulations and fees now.

[PJammers]

Precisely!

[HangnJudge]