Oil, gas prices take a sudden tumble

CNBC ^ | 4/1/04

[Steven W.]

The Administration’s talk of suspending clean air rules in three states drops crude oil and wholesale gasoline prices. Markets move slightly higher as the Dow Jones average is shuffled.

Have gasoline prices peaked? Maybe.

But the fact is oil and wholesale gasoline prices dropped abruptly this afternoon as the Bush Administration said it was considering suspending clean air rules for three states -- California, New York and Connecticut.

The comments by Energy Secretary Spencer Abraham before a Congressional hearing today knocked crude oil prices down nearly 4.1% to $34.30 and wholesale gasoline futures to $1.07, down 5.5%. Crude ended the day at a 7-week low.

California, New York and Connecticut have asked the Environmental Protection Agency for temporary waivers for the summer, Bloomberg News reported. The states are required to sell gasoline that's blended with ethanol or other substances to make the fuel burn cleaner. Prices had declined in earlier trading on expectations that U.S. inventories will be adequate to meet demand from refiners making gasoline.

The news came as Congress was criticizing the Organization of Petroleum Exporting Countries for deciding to cut back its production by 1 million barrels of oil a day and Democrats were howling at the Bush Administration for doing nothing about rising fuel prices.

Big oil stocks didn’t move much, but oil and gas production stocks and oil services stocks sure did. The Philadelphia Oil Services Index ($OSX.X) was down 2.7%. The Amex Oil Index ($XOI.X) slipped 1.4%.

Assuming the price changes hold, it could knock the price of gasoline off by 10 cents a gallon, CNBC's Melissa Francis reported on "Closing Bell." The national average recently was about $1.74 a gallon.

[Steven W.]

Imagine ... addressing a problem by addressing the problem! The liberals and environmentalist wackos will have none of that!

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[netmilsmom]

WoooooHoooooo!

Go GWB!!!

[johnfrink]

Now we will see that crazy phenomenon where we hear that a decrease in the price of oil "will take months" to be felt at the pump, whereas an increase is somehow felt the very next day. Mark my words.

[PatrickHenry]

Another democrat talking point they won't be talking about any more.

[netmilsmom]

Who is that???

[chemicalman]

No! Not yet! The dems said it was supposed to reach $8.00 a gallon! / sarcasm

[Flyer]

Bump from a 75,000 mile a year driver.

[Centurion2000]

I've got an idea that he could try as well. Bush tells the nation that the first proposed new refinery and first new atomic plant to be designed and submitted for approval will receive full Executive protection from Judicial injunctions and restrictions against it being built.

Should make for an interesting government scramble and drop gas prices as well.

[Dog Gone]

NEW YORK - US oil prices fell about 4 per cent on Thursday after the US energy secretary said the Bush administration was considering relaxing clean-burning petrol regulations in three states.

The pump prices for petrol may fall if rules are relaxed in California, New York and Connecticut, which have asked the US Environmental Protection Agency (EPA) to waive requirements for specially blended petrol this summer because the states have not met federal air pollution guidelines.

"It's my understanding that EPA is seriously considering looking at this request," US Energy Secretary Spencer Abraham told a Congressional committee on Thursday.

An EPA spokesman confirmed the agency is considering the requests but has set no time frame for action.

The US currently has record high petrol prices, with the pump price of regular fuel averaging US$1.76 per gallon, according to the US government.

Californians are paying about US$2.13 per gallon for self-serve regular petrol, which is the highest in the nation.

New York's average petrol price is about US$1.87 a gallon and it is about US$1.81 in Connecticut, according to the American Automobile Association, a motorists' group.

US light crude ended at US$34.27 a barrel, down US$1.49 on the day.

US oil prices were already down about 50 cents when the news of the possible petrol waivers emerged.

The oil market reacted sceptically to the Opec cartel's Wednesday agreement to implement a previous commitment to tighten supply by 1 million barrels per day beginning Thursday. Market participants say they do not expect Opec to fully implement its cut.

[mplsconservative]

I was wondering the same thing. Who dat?

BTW, I like your tag. (<:

[Dutchgirl]

I don't know, but it looks like they live in a trailer- DOWN BY THE RIVER!!!

[netmilsmom]

>>BTW, I like your tag. (<:<<

Thanks!

[txhurl]

Who's that? And where's the beer?

[el_texicano]

Awwwww hell, GWB!! While UR at it tell Congress to pass a oil relief package by removing the 50 cent a gallon tax on gasoline. Now THAT will seriously be a tax break for the little guys that the liberals will have a hard time opposing.

DO IT!!!! REPEAL THE $.50/gallon TAX!!!!!!!!!!!!!!

Hell, let's talk some serious hardball here!!!!

[teletech]

It was $1.89 a gallon for 87 octane here in West Suburban Chicago yesterday.

[Rodney King]

Since it is your contention that the price of gasoline is completely and artificially controlled by a small cartel of Exxon, Shell, and others - please explain to me why they allowed the price of gasoline to fall today. Do they just feel like not making as much money today as they did yesterday?

[txhurl]

Should read: who are THEY? There are two girls in the picture.

[mabelkitty]

He's GOT to do that.
The states will be his.

[netmilsmom]

Is that a lady's buttocks on the far right side?????