Posted on 09/10/2006 8:54:12 PM PDT by thackney
Oil prices slipped under $66 on Monday, adding to last week's slide on an improved U.S. supply picture and signs of easing tension over Iran's nuclear program.
U.S. light crude for October delivery fell 36 cents to $65.89 a barrel by 2315 GMT, hitting a new five-month low of $65.70. It had plunged $1.07 on Friday and lost over 4 percent last week. London Brent crude fell 13 cents to $65.20.
Prices continued a slide from Friday after the potential early recovery of output from BP's giant Alaskan oil field followed U.S. inventory data that showed growing fuel stockpiles, with traders now watching for OPEC's decision on output levels.
The producers cartel meets on Monday in Vienna, with ministers saying on Sunday they were unlikely to change a high output policy that is helping steer prices lower.
"U.S. supply is comfortable and demand is about to enter a comparative lull. The Iran premium is dwindling too as the negotiations between Iran and the U.N. drag on," said Tobin Gorey of the Commonwealth Bank of Australia.
Iran's chief nuclear negotiator Ali Larijani offered a two--month suspension of Tehran's nuclear enrichment program in weekend talks with EU foreign policy chief Javier Solana, an EU diplomat said on Sunday.
But it was unclear if Iran would meet the Western demand it suspend enrichment before the start of any talks on trade incentives aimed at ending the nuclear stand-off. An Iranian official denied Tehran had offered any freeze on enrichment.
Expectations of a long delay before any possible sanctions has eased worries that Iran could retaliate by disrupting oil flows, while a milder-than-forecast Gulf of Mexico hurricane season so far has also helped dampen U.S. prices from a record $78.40 in July.
Hurricane Florence, the second of the 2006 Atlantic season, headed toward Bermuda
(Excerpt) Read more at washingtonpost.com ...
No, no, we'll break $100 by the end of the year! The 'experts' told us.
Read that OPEC is concerned about falling prices.
Well, well. Gas prices finally dropped in my neck of the woods this week. Odd though, that Walmart is now among the highest priced and Chevron the lowest.
Someone please explain to me why the price of natural gas keeps rising. I just received an ugly warning from Washington Gas about what the winter's heating bill is going to be like. Is there a bottleneck in the supply of gas for this winter?
I remember about 3 years ago, the ragheads were saying they thought 25-28 dollars a barrel was a comfortable level. Now they're concerned about oil at 66 dollars a barrel. God, please. I'm begging you. Solar. Biodiesel. Geothermal. Something. Anything. Just get me off this Arab juice.
can anyone imagine $50 oil by Nov 1??
the DUers will be crying and screaming conspiracy
good news for the economy... we'll be worrying about deflation again shortly (ha)
Let's see. Bush gets blamed for high gas prices. Will he get credit for lowering gas prices? As if he has anything to do with it.
Would you actually support drilling off the Florida Coast? And support a candidate that promotes it?
Fock OPEC!
the price of fuel ethanol is also off,
last time I looked, $2.04 ,
down from a recent, three or four bucks
.......
2.04 is still way too high,
compared to the price you can make it for
But like crude oil, it is a fungible commodity. The price is not driven much by cost of production but supply and demand.
Huh? Natural gas is really low now on the Henry Hub pricing of about 5.66/1000cuft. Lowest in a long long time.
Correction, it is now 5.46. Just checked Bloomberg. Just a couple of years ago it was 13.00 or so.
In my opinion, this will be short lived. US Natural Gas storage was filled faster than normal this year. This created more of a surplus of supply as storage was not taking gas in quite as fast and the cold hasn't come yet to start drawing from storage.
The futures price for Natural Gas this Winter is over $10.
http://www2.barchart.com/dfutpage.asp?sym=NG&code=BSTK
Also they go bankrupt since no one is buying their oil anymore!!
When does it start making sense to turn oil into methane?
And if(big if) we do not have a cold winter they will be holding the bag?
No, I don't think so. If we have a warm winter they probably will, and if we have a cold winter those that buy now will probably do well. But this would be typical of our tight natural gas supplies in winter months.
We really are in a unique time of having this much gas in storage this early.
Weekly Lower 48 States Natural Gas Working Underground Storage
http://tonto.eia.doe.gov/dnav/ng/hist/nw_epg0_sao_r48_bcfw.htm
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