Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Oil falls from record high above $74
ABC/al-Reuters ^ | 4/20/2006

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.

(Excerpt) Read more at abcnews.go.com ...


TOPICS: Business/Economy; Front Page News; News/Current Events
KEYWORDS: energy; falls; oil
A little good news for a change.
1 posted on 04/20/2006 4:24:28 PM PDT by B Knotts
[ Post Reply | Private Reply | View Replies]

To: B Knotts

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.


2 posted on 04/20/2006 4:36:15 PM PDT by tobyhill (The War on Terrorism is not for the weak.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: B Knotts

FYI...

3 posted on 04/20/2006 4:37:08 PM PDT by xcamel (Press to Test, Release to Detonate)
[ Post Reply | Private Reply | To 1 | View Replies]

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.
4 posted on 04/20/2006 4:39:13 PM PDT by SunkenCiv (https://secure.freerepublic.com/donate/)
[ Post Reply | Private Reply | To 1 | View Replies]

To: B Knotts

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
http://www.freerepublic.com/focus/news/1618597/posts


5 posted on 04/20/2006 4:39:54 PM PDT by SunkenCiv (https://secure.freerepublic.com/donate/)
[ Post Reply | Private Reply | To 1 | View Replies]

To: B Knotts

Sorry, I meant that to be a blank "To" field. :'(


6 posted on 04/20/2006 4:40:19 PM PDT by SunkenCiv (https://secure.freerepublic.com/donate/)
[ Post Reply | Private Reply | To 1 | View Replies]

To: xcamel
Don't you just wish those loosers would quit whining about gasoline prices. It was worse when Carter was President.
7 posted on 04/20/2006 4:41:04 PM PDT by Doe Eyes
[ Post Reply | Private Reply | To 3 | View Replies]

To: B Knotts

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?.


8 posted on 04/20/2006 4:49:42 PM PDT by sgtbono2002
[ Post Reply | Private Reply | To 1 | View Replies]

To: B Knotts

$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.


9 posted on 04/20/2006 5:02:55 PM PDT by iThinkBig
[ Post Reply | Private Reply | To 1 | View Replies]

To: Doe Eyes
Don't you just wish those loosers would quit whining about gasoline prices.

Yes, I do. Seems we have alot of neo-socialists in the house these days.
10 posted on 04/20/2006 5:07:53 PM PDT by A Balrog of Morgoth (With fire, sword, and stinging whip I drive the RINOs in terror before me.)
[ Post Reply | Private Reply | To 7 | View Replies]

To: B Knotts

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:

http://snappoll.com/poll/90298.php

thanks. The data will be used for a term paper for school.


11 posted on 04/20/2006 5:33:07 PM PDT by XtreMarine
[ Post Reply | Private Reply | To 1 | View Replies]

To: XtreMarine

And you thought gas prices hurt....

http://www.thebucketheadshow.com/timages/page/media/gas_hurts.wmv


12 posted on 04/20/2006 5:49:01 PM PDT by RasterMaster ("Bin Laden shows others the road to Paradise, but never offers to go along for the ride." GWB)
[ Post Reply | Private Reply | To 11 | View Replies]

To: iThinkBig

$80/barrel?

I expect to see $90-100/barrel by the end of summer...


13 posted on 04/20/2006 5:58:11 PM PDT by gogogodzilla (Raaargh! Raaargh! Crush, Stomp!)
[ Post Reply | Private Reply | To 9 | View Replies]

To: gogogodzilla

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


14 posted on 04/20/2006 6:14:12 PM PDT by jneesy (certified southern right wing hillbilly nutjob)
[ Post Reply | Private Reply | To 13 | View Replies]

To: B Knotts
The local stations dutifully increased from $2.89 to $2.95 last night in response to the $74.00 bl spike. I'm not holding my breath for a proportional dutiful decrease tonight.
15 posted on 04/20/2006 6:26:16 PM PDT by lightman (The Office of the Keys should be exercised as some ministry needs to be exorcised.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: gogogodzilla

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.


16 posted on 04/20/2006 6:41:18 PM PDT by RayChuang88
[ Post Reply | Private Reply | To 13 | View Replies]

To: B Knotts

17 posted on 04/20/2006 7:14:28 PM PDT by Lunatic Fringe (http://ntxsolutions.com)
[ Post Reply | Private Reply | To 1 | View Replies]

To: RayChuang88

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.


18 posted on 04/20/2006 7:15:52 PM PDT by gogogodzilla (Raaargh! Raaargh! Crush, Stomp!)
[ Post Reply | Private Reply | To 16 | View Replies]

To: xcamel

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.


19 posted on 04/20/2006 7:16:57 PM PDT by pctech
[ Post Reply | Private Reply | To 3 | View Replies]

To: B Knotts

Gold dropped back a little, too. Silver and copper also. Those stocks took a good hit.


20 posted on 04/20/2006 7:17:11 PM PDT by RightWhale (Off touch and out of base)
[ Post Reply | Private Reply | To 1 | View Replies]

To: gogogodzilla
They can't maintain those prices for long--period. Recent US government statistics show that the increase rate in gasoline usage normal at this time of the year is quite a bit lower than what happened last year, which tells me gasoline is more an economically elastic (e.g., price sensitive to consumer) product than people think. If the trend continues of lower gasoline usage expect price cuts by mid-summer because the petroleum companies can't keep all that high-priced crude oil sitting around.
21 posted on 04/20/2006 7:21:53 PM PDT by RayChuang88
[ Post Reply | Private Reply | To 18 | View Replies]

To: RayChuang88

That makes perfect sense in a free market.

However, we currently see high levels of oil stocks in America... which means that the demand for crude oil is lower... which is somehow increasing the price of oil?

So, I don't expect the price of oil to drop on the sound free market principle of a reduced demand reducing prices.

Elsewise, we'd be seeing it happen in the right here and now.

:-(


22 posted on 04/20/2006 7:30:37 PM PDT by gogogodzilla (Raaargh! Raaargh! Crush, Stomp!)
[ Post Reply | Private Reply | To 21 | View Replies]

To: B Knotts

Spoken like a true Chinese water-torture victim with a new paper towel.


23 posted on 04/20/2006 7:34:12 PM PDT by Old Professer (The critic writes with rapier pen, dips it twice, and writes again.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: ValerieUSA; FairOpinion; Do not dub me shapka broham; Berosus; dervish; Convert from ECUSA; ...

FReep this poll:

http://www.freerepublic.com/focus/f-news/1618602/posts?page=11#11


24 posted on 04/20/2006 7:37:42 PM PDT by SunkenCiv (https://secure.freerepublic.com/donate/)
[ Post Reply | Private Reply | To 11 | View Replies]

Senator Mike DeWine has voted against drilling in ANWR four times

Bill Pierce, US GOP Senate Candidate to Unseat Mike DeWine in Ohio, on ANWR and Energy
http://www.freerepublic.com/focus/bloggers/1618628/posts?page=1


25 posted on 04/20/2006 10:05:38 PM PDT by thackney (life is fragile, handle with prayer)
[ Post Reply | Private Reply | To 1 | View Replies]

To: SunkenCiv

Poll FReeped. Thanks!


26 posted on 04/21/2006 5:36:42 AM PDT by Convert from ECUSA (Illegals - taking the rights Americans don't have - tell them No Tu Puede)
[ Post Reply | Private Reply | To 24 | View Replies]

To: pctech
Yes, some people don't realize that "adjusting for inflation" doesn't take into account that many of us don't get wage increases that match inflation.

According to inflation calculators, the salary I make today is a couple thousand dollars below the salary I made in 1998.

27 posted on 04/21/2006 5:49:16 AM PDT by Lunatic Fringe (http://ntxsolutions.com)
[ Post Reply | Private Reply | To 19 | View Replies]

...if every auto would burn just a gallon less per week (that means the driver of course)...

http://www.onlineconversion.com/volume.htm

42 gallon [US, liquid] = 1 barrel [US, petroleum]

2,000,000 barrel [US, petroleum] = 84,000,000 gallon [US, liquid]

There are in excess of 200 million vehicles; if only 84 million burned one less gallon per week...

Bush warns looters, urges Americans conserve gas
Reuters | Sep 1, 2005 | Steve Holland, Caren Bohan, and Adam Entous
Posted on 09/02/2005 6:26:15 AM PDT by grundle
http://www.freerepublic.com/focus/f-news/1475533/posts

[http://www.freerepublic.com/focus/news/1473964/posts?page=169#169]


28 posted on 04/21/2006 7:39:18 AM PDT by SunkenCiv (https://secure.freerepublic.com/donate/)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Lunatic Fringe
I don't know if this is worse, but right now my income level puts me below poverty level. What does that say??

:-))

29 posted on 04/21/2006 8:45:25 AM PDT by pctech
[ Post Reply | Private Reply | To 27 | View Replies]

To: gogogodzilla

"$80/barrel?

I expect to see $90-100/barrel by the end of summer..."

We'll see, I hope your wrong.


30 posted on 04/21/2006 9:05:00 AM PDT by iThinkBig
[ Post Reply | Private Reply | To 13 | View Replies]

To: gogogodzilla

"However, we currently see high levels of oil stocks in America... which means that the demand for crude oil is lower... which is somehow increasing the price of oil?

So, I don't expect the price of oil to drop on the sound free market principle of a reduced demand reducing prices."

Your are correct. What is really messed up is heating oil. $2.50 a gallon here in the North East. Thank God we had a mild winter, I burn about 200 gallons a month when it's cold. Their is a MAJOR surplus of heating oil this season, but the price went UP!


31 posted on 04/21/2006 9:08:23 AM PDT by iThinkBig
[ Post Reply | Private Reply | To 22 | View Replies]

To: jneesy

"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"

Yes it is. I made $94k last year, live in Maine and have low debt. I live comfortably, but 3 years ago I would have considered myself almost wealthy. Now our family is just paying the bills and I can only save about 5% for savings and vacations vs. 15% three years ago. I can't imagine how families who make less then $60k a year are even making it up here in the Northeast. Guess you can always eat bologna, rent videos and have no health insurance...


32 posted on 04/21/2006 9:25:15 AM PDT by iThinkBig
[ Post Reply | Private Reply | To 14 | View Replies]

To: iThinkBig

Well, oil hit $75/barrel today... and it doesn't look like the trend is stopping.

Figure it'll hit $80 within the next 2-3 weeks.


33 posted on 04/21/2006 7:42:01 PM PDT by gogogodzilla (Raaargh! Raaargh! Crush, Stomp!)
[ Post Reply | Private Reply | To 30 | View Replies]

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson