Oil Drops on Surprise Inventory Jump ("There's plenty of crude")

YeeHow!/ApeHee ^ | Thursday November 15, 2:04 pm ET | By John Wilen, AP Business Writer

[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.

[henkster]

There’s plenty more to be had offshore the US and in ANWAR, but the leftist tree-huggers won’t let us go get it. Enough to make us self-sufficient in oil? Probably not. But enough to reduce dependence, stabilize the world market, and lead to greater economic prosperity.

Somehow the left just isn’t interested in any of that.

[A_Tradition_Continues]

800,000 barrels really isn’t very much in either gas or crude oil. That amount, as impressive as it might sound, wouldn’t fill an Aframax or Suezmax (smallest oil tanker vessels) class vessel. The majority of vessels utilized in international transport of petroleum products is classified as a VLCC. VLCC’s have a capacity of 2,000,000 barrels.

[aroundabout]

"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."

Oil prices COULD quickly reverse, IF, UNEXPECTED DECLINE in supplies. Well no sh*t bucky! Prices could ALSO collapse IF the Saudi's "suddenly" find their reserves are a 100 billion bbls MORE then thought and they will INCREASE production by 35%. Shoulda, coulda, woulda, if, maybe, possibly, what the hell ever happened to reporting the facts and leaving opinion and guess work in the editorial column?

[MAexile]

Not 90 minutes ago (a little after 2:00 PM EST) I was in a research associate talk that we give at work about every two weeks. The first speaker started off by asking everyone how much oil we had left in the world. After a couple of answers were given, he said that it did’t matter because if we didn’t stop putting so much carbon into the atmosphere global warming will get worse, and cites hurricane Katrina as proof.

After that, I had a very nice nap.

[Old Professer]

“if there’s a late season hurricane or prolonged cold snap in the U.S.”

Both of which very likely given Global Warming climate change.

[aroundabout]

WE don’t have to be independent of OPEC to cause the price to crash. Opening up ANWR and off shore here could allow us to reduce our OPEC imports by 15% and that alone would cause the world wide price to plummet. The very idea we had these reserves developed and ready to tap at any time would keep the price in check.

[thackney]

They are claiming that the oil field they found in South America is bigger than all the oil fields in Saudi Arabia.

The new find in Brazil is 5 to 8 billion barrels. Saudi Arabia's reserves are 262 billion.

Oil Proved Reserves, All Countries (Billion Barrels)
http://www.eia.doe.gov/emeu/international/reserves.html

Petrobras Finds New Oil Frontier
http://rigzone.com/news/article.asp?a_id=52697

[VRWCTexan]

Believe me I know -

I’ve been in the international oil and gas business for 40 years - and my father and uncle another 30 years before that...

There is also enough recoverable shale oil here in the US to dwarf all the black oil in Saudi Arabia - and an estimated 1,000 year supply of coal...

[Eric in the Ozarks]

I can dig that.

[gathersnomoss]

Thank you for the resources.

[HamiltonJay]

Everything over 45 a bbl is simple greed tax.

[mdmathis6]

not even the benefit of a reach around..ehh? poor fellow!

[reagan_fanatic]

Perhaps the Freepers who predicted oil would “top out” before reaching $100 and then drop were right.

We'll see just what kind of 'drop' we get, and how long it will stay there until the next 'crisis' comes along to push it back up again.

[HamiltonJay]

Get rid of futures trading, and you’d see spot oil crash inside of a few weeks. Speculative greed is all ever dollar over $45 a bbl is.

[AU72]

If Kerry got elected our Strategic Petroleum Reserve would be drier than a Georgia reservoir with no effect on the price.

[lilylangtree]

Those commodity traders just have to make oil reach that $100 to prove to all those gold coin dealers who keep saying that oil is gonna be $100 per barrel so you must buy gold to protect yourself.

[GraniteStateConservative]

Gosh, it’s ALMOST as if some creator put this energy source here for our use at this time... /sarc

Ask him what the hell he was thinking putting it under Islamic soil.

[MrB]

That’s a darn good question.
All part of His plan, I’m sure.

Might as well ask “Why the platypus?”

[ksen]

Not 90 minutes ago (a little after 2:00 PM EST) I was in a research associate . . .

Wha . . .?

[jocko12]

Get ready for the big gas rip off starting this weekend.