Posted on 06/07/2006 10:19:18 AM PDT by rightinthemiddle
Oil Prices Fall More Than $1 As Inventories of Crude and Gasoline Rise
WASHINGTON (AP) -- Oil prices fell by more than $1 a barrel on Wednesday after U.S. government data showed rising domestic inventories of crude-oil and gasoline.
"The market looks a bit shaky," said BNP Paribas Commodity Futures broker Tom Bentz, noting that traders had expected crude-oil inventories to drop. Bentz said gasoline imports also looked strong.
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Earlier in the day, former Federal Reserve Chairman Alan Greenspan said that while the country has been able to absorb sharp increases in oil prices, the high energy costs are beginning to stunt economic growth. However, the price of oil has not produced any "serious erosion" of world economic activity, he said.
The market was also reacting to reports that gunmen kidnapped five South Koreans in an overnight raid on a southern Nigeria natural-gas plant owned by Royal Dutch Shell PLC.
Light sweet crude for July delivery fell $1.55 to $70.95 a barrel on the New York Mercantile Exchange, where gasoline futures slid by more than 4 cents to $2.14 per gallon. July Brent crude futures on London's ICE Futures exchange fell 43 cents to $70.38 a barrel.
In its weekly petroleum report, the Energy Department said U.S. crude-oil stocks grew last week by 1.1 million barrels to 346.6 million barrels, or 4 percent above year ago levels. Gasoline inventories grew by 1 million barrels to 210.3 million barrels, or 2.5 percent below year ago levels. The commercial supply of distillates, which include heating oil and diesel, increased by 1.8 million barrels to 120.7 million barrels, or 8.5 percent more than a year ago.
(Excerpt) Read more at biz.yahoo.com ...
Adam Smith? 1776? Wealth of Nations? Invisible hand?
Probably go up .05-.10 cents today.
Will there be a hearing? :)
Ping me when oil falls to $60.
What is interesting about gasoline in Alaska is that it is not blended with ethanol, yet the price seems to be similar to the markets Outside. The ethanol would have to be imported, which means from Brazil, and it is already expensive to import to New Orleans from Brazil not to mention going on up to Alaska.
uh-oh....I smell a refinery fire in the not too distant future
Great tag line for your profession.
Lawyers are the equivalent to accountants, IMHO. They just use a lot of words instead of a lot a numbers, and the average Joe has to study a while to understand just what all they mean.
"How fast will gas prices fall today?"
They'll probably rise, since it's all about being good capitalists.
AK gasoline, basis Anchorage, typically has had (historically) a 10-17 cent transportation premium. This changed in the early days of the pipeline, but began reverting to historical levels, oh, 15-odd years ago. I suspect (but don't know) that the pipe is now more-or-less unidirectional, which would account for this occurrence.
Wow, what a novel concept....
Prices rise. Demand falls. Prices drop.
And demand will continue to drop as less and less people buy v8's and even v6's. The car market for gas guzzlers, if not dead, is near dead. The cars that are moving are the 4 cylinders and the hybrids, that from a sales manager at a major Southern California auto dealer.
Here's a tip to reduce demand even more; Drive the speed limit. I've moved from the left lanes to the right, dropped 10-15 mph, and save far more gas than I imagined.
Must be 15-20%.
yeah as if californians need more cars! Ever hear about a bus?
isn't hurricane season right around the corner?
As someone who was part of the auto industry from 1979 thru 1995 I can tell you this is exactly what was said during the gas crunch of the late 1970's. Inflation adjusted gasoline prices today are not that much higher then they were in 1979('79 gasoline inflation adjusted would be $2.66 today) and when the improved (much improved) efficiency of todays vehicles is factored in then the cost of gasoline may very well be LESS then it was then. Bottom line is people will soon get over the shock of todays gasoline prices as they realize we are still paying only half of what Europeans pay. With more and more hybrids coming to market the outlay consumers must make for fuel will diminish relative to the miles they drive.
oil is overpriced due to speculative bubble and manipulation.. there is no shortage of crude, in fact inventories are high across the globe... its a 30-45 a bbl commondity, everything above that in price is nothing but greed and speculation.
It will pop.
Tom Daschle is saddened, deeply saddened.
Capitalism rocks.
Re: "Oil prices fell by more than $1 a barrel on Wednesday after U.S. government data showed rising domestic inventories of crude-oil and gasoline."
Well, here in Corsicana, Texas... 56 miles south of Dallas... Gas jumped from $2.65 per gallon last Friday to $2.85 today!
Go figure...
I have noticed for years that any time an auto review would bash a 4 banger and suggest that this car needs a v-6. Now they are singing a very different tune.
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