Oil drops 9 percent on week on stronger dollar, glut warning

reuters.com ^ | March 13, 2015 | Barani Krishnan

[Berlin_Freeper]

Global oil prices tumbled on Friday and fell 9 percent on the week, hit by a renewed rally in the dollar and a warning by the International Energy Agency (IEA) that the oil glut is growing.

[rktman]

Glut hell. It’s back up to over $3/gal in Reno.

[fhayek]

Somebody enlighten me. Why is the dollar stronger? I can’t be from the prudent economic policies of the Fed and the Obama administration. Is it because the Euro and the Japanese yen are so crappy in comparison?

[alstewartfan]

B/c other countries are even closer to collapse.

[Red Badger]

Why is our gasoline going UP again?.................................

[fhayek]

As Stuart Varney likes to say, we are the prettiest pony in the glue factory.

[RayChuang88]

I think it won't stay for long. If the price of oil drops to under US$45/barrel, we could see a very fast price crash even with the "boutique" blending of various gasoline types.

[Tolerance Sucks Rocks]

Refinery strike.

[deport]

Refinery strike.

*************

Have you seen any info on reduced capacity or reductions in storage/production
of finished products? I haven’t.

[IWONDR]

“Glut hell. It’s back up to over $3/gal in Reno.”

it’s $3.49 in my neck of the woods. why is it that when the price of a barrel of oil drops you don’t see the same precipitate drop in gas price at the pump, as you see a precipitate rise in gas prices when the price of a barrel rises a few dollars?

[Theoria]

[Berlin_Freeper]

http://www.nasdaq.com/markets/crude-oil-brent.aspx

[SunkenCiv]

OPEC Has Already Turned to the Euro
GoldMoney Alert
February 18, 2004

...The source for the euro exchange rate is the Federal Reserve, and I have calculated the euro's average exchange rate to the dollar for each year based on daily data.

US Imports of Crude oil
(1)	(2)	(3)	(4)	(5)	(6)
Year	Quantity (thousands of barrels)	Value (thousands of US dollars)	Unit price (US dollars)	Average daily US$ per € exchange rate	Unit price (euros)
2001	3,471,066	74,292,894	21.40	0.8952	23.91
2002	3,418,021	77,283,329	22.61	0.9454	23.92
2003	3,673,596	99,094,675	26.97	1.1321	23.82

We can see from column (4) in the above table that in 2001, each barrel of imported crude oil cost $21.40 on average for that year. But by 2003 the average price of a barrel of crude oil had risen 26.0% to $26.97 per barrel. However, the important point is shown in column (6). Note that the price of crude oil in terms of euros is essentially unchanged throughout this 3-year period.

As the dollar has fallen, the dollar price of crude oil has risen. But the euro price of crude oil remains essentially unchanged throughout this 3-year period. It does not seem logical that this result is pure coincidence. It is more likely the result of purposeful design, namely, that OPEC is mindful of the dollar's decline and increases the dollar price of its crude oil by an amount that offsets the loss in purchasing power OPEC's members would otherwise incur. In short, OPEC is protecting its purchasing power as the dollar declines.

[rktman]

LOL! You really have to ask? It’s gotta be linked to the evil Koch brothers and their plans to buy congress. Or take over the world. Or something. :>}

[luvbach1]

I saw $4.19/gallon yesterday in San Diego.

[SunkenCiv]

refinery strike from the FRchives:

• Oil Prices Deliver a Crash Course in "Supply and Demand" [2015]
• Cramer: The gigantic oil crash that hasn't occurred [2015]
• Union says tentative deal reached to end U.S. refinery strike [2015]
• Repeal the decades-old oil export ban to help energy renaissance [2015]
• Fitch: Prolonged refinery strike could affect gasoline supplies [2015]
• Chevron to sell $15 billion of assets, cut spending amid price slump [2015]
• Workers at nation's largest oil refinery join growing strike [2015]
• Restoring West Coast Ocean Cargo Service May Be Costly Proposition [2015]
• Steelworkers strike: More labor board charges filed [2015]
• Delta's Trainer Refinery Calls In Federal Mediator, Hoping To Avoid Strike's Spread To Northeast [2015]
• {Refinery} Company accuses USW of threatening returning workers [2015]
• Low Oil Price May Stifle Deepwater Drilling And Oil Sands But Not Fracking [2015]
• Petroleum refinery outage in California highlights markets' quick price reaction [2015]
• Shell and USW 2015 Oil Bargaining -- Just The Facts: Update [2015]
• Some contractors (unionized) not so bad, Steelworkers say {Refinery strike} [2015]
• Potential market implications of outage at ExxonMobil's Torrance, California refinery [2015]
• West Coast Dock Strike Settles Just In Time For Refinery Strike [2015]
• U.S. refinery strike spreads to one-fifth of national capacity [2015]
• Refinery workers strike spreads to biggest US location [2015]
• USW:California Refinery Explosion Provides Further Evidence of Need for Safety Improvements [2015]
• Explosion Rips Through Torrance Refinery, Shakes South Bay [2015]
• National Bargaining: Greedy Oil Industry Forces Work Stoppage [2015]
• Cause Of ExxonMobil Torrance Refinery Explosion Under Investigation [2015]
• LyondellBasell: Strikers, come back to work [2015]
• Shell, union spar over picket line etiquette [2015]
• TransCanada plans another cross-border pipeline [2015]
• Operations At 3 Refineries Interrupted As Strike Continues To Cause Havoc [2015]
• Is it 1970? Steelworkers Strike [2015]
• Steelworkers strike extends to BP plants outside Texas [2015]
• Building unions return to Kentucky refinery despite Steelworkers' Picketlines [2015]
• Union rejects sixth refinery offer from Shell, talks recess [2015]
• USW Oil Workers to Rally at Shell Headquarters [2015]
• For striking U.S. refinery workers, Shell shocks with a new style [2015]
• U.S. workers strike for second day at nine refineries; one to shut [2015]
• Refinery strikes unlikely to move gasoline, oil prices [2015]
• Union strikes at 9 US refineries in bid for new contract [2015]
• National Oil Bargaining Talks Break Down:USW Calls for Work Stoppage at Nine Oil Refineries,Plants [2015]

[nascarnation]

How’s that California state “Cap & Trade” program working for ya?

[rktman]

Filling up on your way out? ;-)

[luvbach1]

The same day I saw $4.19/gallon I bought gas for $3.39/gallon. Not leaving the state; just got back after 7-year absence. San Diego (hometown) is still a nice place to live, the lib lock on CA politics notwithstanding.

[PJammers]

Because the dollar is the prettiest turd in the toilet bowl.