Lower Supply Raises Oil Prices

The New York Times ^ | May 14, 2003 | BLOOMBERG NEWS

[Willie Green]

For education and discussion only. Not for commercial use.

Crude oil prices rose to their highest level in four weeks yesterday after the International Energy Agency said inventories had tumbled 10 percent from last year. Bombings in Saudi Arabia, the world's top producer, also contributed to the rally.

Oil supplies held by the 30 nations belonging to the Organization for Economic Cooperation and Development ended March at 2.34 billion barrels, down 260 million barrels from a year earlier, according to the agency, which advises industrialized countries on oil policy. Prices have gained 10 percent this month on expectations of further drops in supply.

"The I.E.A. believes that inventories are critically low," said James Fiedler, an oil broker with Man Financial Inc. in Rome, Ind. "The Saudi bombings are another sign of disenchantment in the country. There is the potential of instability."

Crude oil for June delivery rose $1.15, or 4.2 percent, to $28.50 a barrel on the New York Mercantile Exchange. It was the biggest one-day increase since April 17 and the highest closing price since April 22.

President Bush called the suicide bombings, which occurred shortly before midnight Monday and early yesterday morning in Saudi Arabia, "despicable" and said the United States "will find the killers." The attacks came just before Secretary of State Colin L. Powell arrived in Riyadh.

[Libertarianize the GOP]

http://www.freerepublic.com/perl/bump-list

[Prodigal Son]

Lower Supply Raises Oil Prices

Ahh, I see the NYTs is sticking to the simple truths in life for a while.

[Paleo Conservative]

Why would I want to use the New York Times to get accurate information of oil prices? Schumberger has much better information.

http://www.slb.com/

[RightWhale]

The I.E.A. believes that inventories are critically low,"

Inventories were high just a few days ago. They were running out of places to store products. Did everybody suddenly decide to top off their SUV gastank simultaneously?

[ginle]

As a wild guess using 50 m barrels per day as the consumption of the 30 nations belonging to the Organization for Economic Cooperation and Development the resrves are down 5 days to 46 days of consumption.

Some figures here say:
http://www.iea.org/omrep/10apr03stk.pdf

down 6 days to 50 days but I can't make them work together for a proper figure of OECD consumption.

Anyway we are in the general area, roughly (perhaps).

[Willie Green]

Did everybody suddenly decide to top off their SUV gastank simultaneously?

I don't know.
But I sure haven't noticed any big inventory clearance sales at the pump.

[ginle]

Thanks Willie Green

that was a nice little snipet of info:
"Oil supplies held by the 30 nations belonging to the Organization for Economic Cooperation and Development ended March at 2.34 billion barrels, down 260 million barrels from a year earlier"

I'm collecting them. I get about one of them every 3-6 months, I recone I will be oil expert at this rate sometime around 2250.

Probably the easiest thing to do would be to read a book on the subject.

[The South Texan]

$1.22 here in South Texas today. One of the good reasons to live in the "Republic" of Texas.