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 ...
“If “ifs” and “buts” were cherries and nuts... Christmas would come very day.
LLS
Same with my family. These so called FR experts on oil are FOS.
LLS
Good idea, let’s do it!
How?
The problem is if oil ever drops back below 80, OPEC, venezuela and russia will conspire to see it back in the range they were comfortable with. Greed never works in reverse.
Dumbest post of the thread.
Alas, no practicle way to do it... too many wealthy people got too much $$ invested in the process....
Just remember, OIL was not traded until 1983, it was always spot on the world market.
Of course, we could just tap the shale oil out west, stick a finger to the middle east and accept that while it will cost us more money per bbl to get it, we won’t be funding wahabbists and other crap.
It costs SA $2 to produce a BBL of oil, there is no shortage of oil. If we never explored another centimeter of the earth we know today where there is enough oil to last us the next several hundred years.
This peak oil excuse is nonsense, oil runup is simply speculative greed.
The inventory rose by a total of 3 hrs of national usage and you believe that means that we are awash in oil?
Possibly the information is correlated without being causal. Seems most of the financial reports are duty-bound to find causes for every blip or lack of blip, and often the cause is something else that happened today or recently. Cause works if there is necessity and there is very little necessity in the universe, but correlation is accidental. One thing for sure: real causes do not make public news.
Peak oil is not related to reserves.
Speculative greed, or merely capitalism at work? I don’t think I would turn down the opportunity make the kind of money being made in the oil pits were I a trader.
How about you?
Speculation on margin is at most 20% of the cost. More like 10%. If the effective margin were eliminated oil would drop about $10.
Not to mention the Alberta Oil, which is now becoming much more economical to produce, particularly compared to present prices for oil.
Most of the volume is oil companies with refineries who don’t produce enough oil themselves and have to buy the rest. Conoco is doing that now.
“Peak oil”’s definition is right in line with what I said about the economically ignorant.
“Peak oil is the point or timeframe at which the maximum global petroleum production rate is reached. After this timeframe, the rate of production will enter terminal decline.”
Again, not factoring in prices and incentives to innovate, explore, and produce at a higher price, until such prices exceed the prices at which an alternative can be provided.
Peak oil was two months ago.
>>He was saying that crude is the new currency,<<
Then I am throwing out all my white pants.
And I saw Santa - I’m telling you, “peak oil” is a fallacy.
Thanks for the input. It will be filed along with recent industry reports, OPEC and independent, that note the presence of the peak.
I thought it was 35 years ago. At least that is essentially what one of my economic professors was saying in 1973.
That was a local peak. This is a global peak.
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.