Posted on 01/03/2007 11:01:09 PM PST by jdm
NEW YORK: Crude oil fell below $59 a barrel Wednesday, registering its biggest drop in 20 months as mild U.S. weather curbed demand for heat and traders bet that fuel supplies had risen.
Home-heating demand in the Northeast, the region responsible for 80 percent of U.S. heating-oil use, will be 43 percent below normal through Wednesday, said Weather Derivatives, a forecaster based in Belton, Missouri.
And U.S. fuel stockpiles probably rose last week, according to a Bloomberg News survey.
"The entire focus is on the weather," said Tom Bentz, an oil broker with BNP Paribas Commodity Futures. "It looks like it will be at least mid-January before we get any hint of real cold weather in the Northeast."
Crude oil for February delivery fell $2.73, or 4.5 percent, to close at $58.32 a barrel on the New York Mercantile Exchange. Futures touched $57.72 in after- hours trading, their lowest level since Nov. 17. Oil had its biggest one-day decline since April 27, 2005.
"We're looking for temperatures to be between 15 and 25 degrees above normal through the weekend in the Washington-to-Boston corridor," said Michael Palmerino, a forecaster at Meteorlogix in Lexington, Massachusetts.
The normal high temperature in Boston at this time of year is 36 degrees Fahrenheit, or 2 degrees Celsius, and the normal low is 22 degrees Fahrenheit, or minus-6 Celsius, Palmerino said. The highs will rise in Boston into the 50s through Sunday, and climb into the 60s from Washington to New York, he said.
(Excerpt) Read more at iht.com ...
I still have a five month supply of Diesel as a tactical reserve.
So....
1) locally warmer weather causes lower demand for heating oil
2) lower demand for heating oil causes oil prices to fall
3) lower oil prices result in lower gasoline prices
4) lower gasoline prices result in people driving more
5) more driving results in more CO2 in the atmosphere
6) More CO2 in the air causes increased global warming and, by definition, warmer weather
It's a beautiful thing!
A perpetual motion machine!
So global warming isn't such a bad thing after all.
LOL!!!
Prediction:
OPEC cuts production in Feb and oil hits the upper 60's by march.
You couldn't tell it was any lower going by the cost of gas.
NYMEX crude contract for June,
USD 61.65
http://ethanolmarket.aghost.net/
Wait! This can't be right!
Claire McCaskill told me that George Bush determines the price of oil.
"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus
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