Oil Falls to $50.50 PB

http://cnn.netscape.cnn.com/ns/news/story.jsp?id=2005041311000001586141&dt=20050413110000 ^ | 4/13/05 | conservativeinferno

[conservativeinferno]

Oil Prices Drop More Than $1 a Barrel

SINGAPORE (AP) - Oil prices dropped more than $1 a barrel Wednesday morning after U.S. government data showed that supplies of crude oil and gasoline grew last week.

On Tuesday, oil prices fell by nearly $2 a barrel after the International Energy Agency forecast slower demand growth this year.

Light, sweet crude for May delivery fell $1.36 to $50.50 a barrel in morning trade on the New York Mercantile Exchange. On the International Petroleum Exchange in London, Brent crude fell 70 cents to $51.28 a barrel.

The U.S. Department of Energy said that the nation's supply of crude oil grew last week by 3.6 million barrels to 320.7 million barrels. It was the ninth straight week in which U.S. oil inventories increased.

Gasoline inventories increased by 800,000 barrels to 213.1 million barrels, the agency said, while the supply of distillate fuel, which includes heating oil and diesel, slipped by 100,000 barrels to 104.0 million barrels.

Heating oil prices fell more than a cent to $1.4535 a gallon, while unleaded gasoline futures fell more than a cent to $1.5190 a gallon.

Also weighing on the market was Tuesday's report by the International Energy Agency.

``The IEA report raised doubts about demand expectations. The market was ready to bounce back up and the bulls were confident that demand would be strong,'' said analyst Phil Flynn at Chicago-based Alaron Trading Corp. on its Web site. ``Now they are losing that confidence. The bulls are jumping ship.''

In its report, the Paris-based IEA suggested that rising U.S. interest rates and energy costs would reduce global demand growth for oil this year by 50,000 barrels a day to 1.77 million barrels a day. The global energy watchdog also said slowing Chinese oil demand growth might...(cont.)

[conservativeinferno]

How long does it usually take before the change in oil affects what we pay at the pump?

[fireforeffect]

Forever.

[Born Conservative]

When oil goes up, it takes about 3 hours for them to adjust the price at the pump. When oil prices fall, there is about a 6 month lag before we see the difference at the pump...

[nypokerface]

It depends. If the price of oil goes up, then the price gas goes up the next day. If the price of oil goes down, then the price of gas goes down in about a month.

[biblewonk]

Ping. Time to fire up the Subrurban!

[refermech]

This is one of those cases where the government should step in and make sure the oil companies aren't making huge profits
at the countries expense. These instant price increases are just extorsion in my opinion.

[RockinRight]

Yup. Gas is still over $2.20/gal.

[Mister Baredog]

Is it time for a fill-up?

[rellimpank]

--in the real world, it takes about as long as necessary to sell what the retailer paid price "A" for, then if the new batch he buys has price "B" , he sells that for what the market will bring---

[garyhope]

"Can I hear $49, 40, 39, 35, 40,40,40,....."

[rellimpank]

--I should add that in southern Nevada, it takes about 3 days---

[garyhope]

Could someone explain to me why diesel is now more expensive than gasoline? It used to be cheaper.

[poobear]

Around here (central Florida) between 3 to 7 days depending on the volume of sales at the pump. The price is always based on replenishing prices.

[poobear]

Different taxes based on emission here.

[PJammers]

I guess we should cancel that ANWAR drilling thingy everyone is upset about!

[speed_addiction]

When oil goes up, it takes about 3 hours for them to adjust the price at the pump. When oil prices fall, there is about a 6 month lag before we see the difference at the pump...

I own a gas station and can tell you the reason behind why prices go up so quick.

When I get a load of fuel (diesel and gasoline) I have to either pay for that load right then and there or the next day. It is this way for all retailers. When we recieve news of a coming increase, the meager mark up we get on each gallon of gas usually will not cover what the new price will be if we were to sell it all at the price we had before.

Even so, there is so much competition that some retailers only increase it enough to come out a little BELOW even. That forces me to match their price. I wind up paying for some of the fuel out of my own pocket.

When the prices go down, we keep the price up for a while to recoup our loses. Selling gas is a cut throat business and there are two full service stations here that keep going broke. New owners come in and go broke within two years. I was lucky to latch on to the one I have because it is at the very best location in town. Two major US highways and I-10 junction right here.

There is a lot of competition with convenience stores to sell gas. I can't match their volume so I can't really match their price. Luckily I have contracts with a couple of oil well service companies and the local highway department to service all their vehicles and wash them. That is where I make my money. If I depended only on selling gas, I would starve to death in two weeks.

[poobear]

Sounds like the old Soviet Union tactics, stepping in and regulating. What would stop them from intervening in all industries?

[JackDanielsOldNo7]

It depends. If the price of oil goes up, then the price gas goes up the next day. If the price of oil goes down, then the price of gas goes down in about a month

Be careful. I made this point yesterday and I got called in a gentle way a dumbass.

[WideGlide]

The Sheiks must have seen the pics of the oil shale rigs going into action. IN UTAH !!!

[refermech]

Too late, they already do. I just want them to regulate in such a way that the public doesn't get screwed.. The pricing mechanism has to be changed to stop these immediate price increase and their corespondingly slow price rollbacks. I'm all for the oli companie4s doing well. Just don't kill us in the meantime.