Skip to comments.Oil falls from record high above $74
Posted on 04/20/2006 4:24:26 PM PDT by B Knotts
LONDON (Reuters) - Oil prices fell on Thursday after setting a fresh all-time high above $74 a barrel as some investors took profits across booming commodity markets.
Prices also slipped as Royal Dutch Shell said it expected to restart a key Gulf of Mexico oil and gas field by the end of May, ahead of plan. The 140,000 barrel-per-day Mars platform was damaged by Hurricane Katrina last year.
London's Brent crude was down $1.24 at $72.50 a barrel by 1610 GMT, having earlier in the day hit an all-time high of $74.22. U.S. May crude was down $1.27 at $70.90, having hit an all-time high of $72.49 earlier.
"It's not surprising, given the levels that we've got to, that there is some profit-taking going on," said Kevin Norrish, an analyst at Barclays Capital in London.
Prices had hit new peaks after the U.S. government on Wednesday reported a larger-than-expected drop in gasoline inventories, adding to concern created by supply losses in Nigeria and the row over Iran's nuclear program.
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It's good news to few but most people don't care about the price of oil when the gas prices have gone up to nearly $3.00 a gallon and it's not good news to commodities investors that want high oil cost.
Prices also slipped as Royal Dutch Shell said it expected to restart a key Gulf of Mexico oil and gas field by the end of May, ahead of plan. The 140,000 barrel-per-day Mars platform was damaged by Hurricane Katrina last year.Cool.
This Week in Petroleum: $3 per Gallon?
(Department of Energy weekly press release on April 19)
Department of Energy | April 19, 2006
Posted on 04/20/2006 7:15:39 PM EDT by snowsislander
Sorry, I meant that to be a blank "To" field. :'(
I have a dream of speculators and commocity traders who ran up the price of oil losing their asses. I know it wont happen but I can dream , cant I?.
$80 a barrel by summer and $3.50 gallon of gas is going to begin a marked slowdown of our economy in late 2006, early 2007, great news for the Dems on the 2008 POTUS race, horrible news for the American public and business owners alike.
For all read every entry. In light of all the oil debates, here is one.
Should Florida support the drilling for oil in the Gulf of Mexico?
Please vote at:
thanks. The data will be used for a term paper for school.
And you thought gas prices hurt....
I expect to see $90-100/barrel by the end of summer...
the difference is in the 70's there was a savings rate. so many people today live on the edge of financial disaster plus these high prices are sustained not a spike like happened in the 70's i'm in sales and i see peoples discretionary spending going out the window. this whole mess is going to hit the economy soon
Alas, I don't think they can sustain the US$80 per barrel rate for long. The reason is simple: those high prices will actually cut demand, and before you know it there will be a major surplus of oil soon, which will force the price under US$60 before you knew what happened. Even the Chinese and Indian economy will not fare well at those high prices.
Dunno, the price of oil ramped up from $62~ per barrel to $74/barrel pretty easily.
And it doesn't look like the price will fall back to the $62~ per barrel range anytime soon. So the next time the Mad Mullah or the Venezualan Virus speaks, I'd expect the market to follow it's consistant pattern, which is to raise the price of oil.
So the $74/barrel goes up again and holds at that price. Repeat ad nauseam.
Honestly, I could care less if oil prices are mathcing their inflation adjusted rate. All I know is I pay 3 times the price I paid 5 years ago for gas and it's killing me financially.
Gold dropped back a little, too. Silver and copper also. Those stocks took a good hit.