Skip to comments.Oil Drops on Surprise Inventory Jump ("There's plenty of crude")
Posted on 11/15/2007 12:12:06 PM PST by rightinthemiddle
Energy Futures Fall After Energy Department Reports Unexpected Jump in Oil, Gasoline Supplies
NEW YORK (AP) -- Energy futures fell sharply Thursday after the government reported unexpected increases in crude oil and gasoline inventories last week and OPEC forecast fourth-quarter demand for oil would be less than expected.
ADVERTISEMENT At the pump, meanwhile, gas prices inched 0.1 cent higher overnight, pulling further above $3 to a national average price of $3.112 a gallon, according to AAA and the Oil Price Information Service. Prices are likely to rise another 10 to 15 cents in coming weeks to catch up with oil prices, which rose 42 percent from August to a record $98.62 a barrel last week. Gas prices peaked at a record $3.227 a gallon in May.
In its weekly inventory report, the Energy Department's Energy Information Administration said oil inventories rose by 2.8 million barrels during the week ended Nov. 9. Analysts surveyed by Dow Jones Newswires, on average, had expected a decline of 300,000 barrels.
Gasoline supplies rose last week by 700,000 barrels, the EIA said. Analysts had expected a 100,000-barrel decline.
Light, sweet crude for December delivery fell $1.41 to $92.68 a barrel on the New York Mercantile Exchange. Crude prices have been volatile this week, falling more than $3 on Tuesday and rising more than $2 on Wednesday after hitting a record of $98.62 one week ago.
(Excerpt) Read more at biz.yahoo.com ...
"BUT oil prices could quickly reverse course and again approach $100 a barrel IF a future inventory report shows an UNEXPECTED decline in supplies, IF new conflict develops in the Middle East or another oil producing region or if there's a late season hurricane or prolonged cold snap in the U.S."
CAPS are mine...the AP engages in wishful thinking.
May I now stop bending over the desk? Ok, just let me know when they are finished?
The second line isn’t from Tim Evans...it was written by the AP writer.
The ecomomy needs oil back below 80/bbl. 60 would be great.
Perhaps the Freepers who predicted oil would “top out” before reaching $100 and then drop were right.
800,000 barrel swing upward in gas supply. Oh, no.
That’s you and me, right?
Actually there were a few others.
Anyone that says “we’re running out of oil” is simply showing their (economic) ignorance.
The existing, known reserves MAY run out, at the present price of oil, but there are other reserves out there, perhaps more expensive to exploit, but which will be exploited at a higher price since it will then be profitable to do so.
And, when oil in total gets to be more expensive than an alternative, it will be replaced with that alternative.
Simple basic econ.
I believe that I heard something about a huge south American find. We “ARE NOT” short on oil.
What goes up WILL come down.
Was watching CNBC on tuesday morning this analyst was saying a record number of options were expiring this week. He thought the traders would push the price over $100 and then he felt a qucik drop into the $80’s was likely, especially with summer driving season over. He was saying that crude is the new currency, because no one wants $ and euros may be overvalued as well.
I'm getting a job as an analyst. I could scarcely do any worse then these bozo's.
“I believe that I heard something about a huge south American find.”
Hopefully it wasn’t in Venezuela.
“BUT oil prices could quickly reverse course and again approach $100 a barrel IF a future inventory report shows an UNEXPECTED decline in supplies, IF new conflict develops in the Middle East or another oil producing region or if there’s a late season hurricane or prolonged cold snap in the U.S.”
Or if the Hollywood writers strike is not settled soon.
Gosh, it’s ALMOST as if some creator put this energy source here for our use at this time...
SAO PAULO, Brazil A monster offshore oil discovery and promising fields near the find could help Brazil join the ranks of the world’s major exporters, but full-scale extraction is unlikely until 2013 and will be very expensive.
The “ultra-deep” Tupi field off the coast of Rio de Janeiro could hold as much as 8 billion barrels of recoverable light crude, and initial production should exceed 100,000 barrels daily, though experts believe the amount will then go much higher.
State oil company Petroleo Brasileiro SA will start pilot pumping in 2010 or 2011 but it will take several more years for full production to get under way, at a cost of billions of dollars.
Petrobras says the Tupi field, off Brazil’s southeastern Atlantic coast, has between 5 billion and 8 billion barrels equivalent to 40 percent of all the oil ever discovered in Brazil.
It was not.
They are claiming that the oil field they found in South America is bigger than all the oil fields in Saudi Arabia.
It will take few years to get it on line but get it on line they will.
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