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Posted on 04/27/2005 8:42:01 AM PDT by RWR8189
LONDON (Reuters) - Oil prices slid more than a dollar on Wednesday as the third highest weekly import level on record fueled a big rise in U.S. crude inventories.
U.S. light crude dropped $1.10 to $53.10 a barrel, more than $5 below the all-time high of $58.28 struck earlier this month. London's Brent crude dropped $1.06 to $53.08 a barrel.
Prices plunged after the U.S. Energy Information Administration (EIA) said U.S. crude stocks rose 5.5 million barrels last week to 324.4 million, the 10th increase in the last 11 weeks.
Crude imports poured in at 10.9 million barrels a day, the third highest weekly average on record.
OPEC producing countries, especially top world exporter Saudi Arabia, have raised production in an effort to build a stock buffer for an expected end-year surge in demand.
Adel al-Jubeir, foreign affairs adviser to Saudi Arabia's Crown Prince Abdullah, said the kingdom was willing to provide as much crude oil as buyers wanted, following a meeting between President Bush and Abdullah in Texas.
Abdullah later announced that Riyadh would host a meeting between producers and consumers in the fourth quarter to discuss oil and other energy issues.
Saudi Arabia is expected to provide most of a 500,000 bpd increase that the OPEC President has said the cartel will make to supplies next month.
Jubeir said Riyadh could tap spare output capacity of 1.3 million to 1.4 million barrels per day (bpd), in addition to its current production of slightly over 9.5 million bpd.
Iran said on Tuesday the global oil market might be oversupplied, while Qatar said the Organization of the Petroleum Exporting Countries was doing all it could to bring prices down.
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And gas prices will go down when?
This huge 5.5 million increase in crude stocks, is, in my opinion huge news if one is looking for the price to drop. I hope this adds to some negative momentum in this commodity market.
I think there was a draw on gasoline stocks, along with a build in crude.
uhhh.... when the prices of crude drop to below $30 a barrel--maybe--possibly--probably not
http://www.gasbuddy.com
What folks don't realize is that service stations pay for their gas when they receive it and thus when they have to pay more they naturally raise the prices and leave the prices up until they recover their costs/profits.
Hence there is a lapse before the price at the pump drops.
The prices in CA which has some of the highest in the nation have dropped a dime in a week. But I'm already figuring that the price will be 2.50/gal this summer if not more.
My suggestion: cut your driving, use Gas Buddy to find the cheapest gas and buy oil stocks.
Make a lemonade out of a lemon. Exxon/Mobil stock has risen about FIFTY PERCENT in a year.
No reason why you can't profit from the higher prices too. :-]
Valero; 380 percent growth in its stock value over the past 10 years.
How many gallons to a barrel of crude?
42 I think.
It must be rough on the administration to deal with all these news sources...As I understand it, the prez has been trying to convince people that the high price is due to supply and demand...But, the A-rabs seem to be calling him a liar...They say they got more crude than they can sell...
Then they tell us they can't refine enough of the stuff...But, very few people heat with oil anymore...Enough plastic producing industry has moved to China and Mexico that the industrial demand has to be far less than it was...
And it's good to see that the U.S. oil company prices are keeping in line with OPEC and making record profits...Even tho it doesn't cost them any more to refine the stuff than it did two years ago...
Let's see...How many congresscritters and administration people own stock in oil companies??? All of them, you say??? Naw, that couldn't be the problem...
55
1 barrell (42 gallons) of crude @ $53.00 a barrel = $1.26 a gallon.
How many gallons of gasoline to a barrel of crude?
cut your driving-can't do that. Traveling sales job. Less driving = less $$
use Gas Buddy to find the cheapest gas-I'll check this out?
buy oil stocks-I plan to do that
Thanks!!
I think we're partially responsibile for the problem. As I understand it Bush signifigantly increased the amount of oil in the Strategic Petroleum Reserve over the last 2 years. We've also increased normal reserves, between the 2 we have 90-120 days supply on hand. That could be stretched out quite a bit, long enough for us to deal with anyone closing the sea lanes, Red China, Iran, etc. This is Bushes "strategery". I've been waiting for the Libs to balme him for helping Big Oil increase profits, but I don't think they can as it is a National Security issue.
I stand corrected, it's 42.
When a Global Depression reduces demand, assuming the deflationary effects of the credit implosion outweigh the FedGov's efforts to inflate.
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