Skip to comments.Oil slides toward multiyear lows
Posted on 02/12/2009 8:59:45 AM PST by EagleUSA
COLUMBUS, Ohio Oil prices slid closer to a new multiyear low Thursday because of growing doubts that the $789 billion stimulus package will reinvigorate the economy and demand for energy.
Retail gas prices, meanwhile, reached a new high for 2009 on Thursday and appeared headed back to $2 a gallon as refiners cut back on production.
Light, sweet crude for March delivery fell $1.04 to $34.90 a barrel on the New York Mercantile Exchange. The contract fell $1.61 overnight to settle at $35.94 after a government report on Wednesday showed that crude inventories jumped much more than expected.
There were also more signs of economic weakness.
The number of people requesting first-time unemployment benefits dropped slightly last week, but remained near a 26-year high as companies lay off thousands of workers amid a deepening recession. The Commerce Department said the number of initial jobless benefit claims dropped to a seasonally adjusted 623,000, from an upwardly revised figure of 631,000 the previous week.
(Excerpt) Read more at news.yahoo.com ...
howcome gas is still 2.18/gal here in Seattle???
Boo - Freakin’ - Hoo!
How’s that supertanker stock and float strategy for speculators working? LOL ...
More bad news for Hugo.
$70.00 per barrel is $2.00 per gallon, $35 per barrel should be $1.00 a gallon for 87 octane. Something is screwed up.
and yet gas continues to creep upwards on a daily basis....
up approx .44 a gal to 2.01 in the daytona beach area since we hit a low of 1.57...
>>Retail gas prices, meanwhile, reached a new high
>>for 2009 on Thursday and appeared headed back
>>to $2 a gallon as refiners cut back on production.
I thought we didn’t have enough refineries?
$2.20-ish in SoCal. I bottomed out at $1.52 at Costco. Now they want to add another $.12 per gallon tax.
The worst will be if oil falls to a point that we quit pumping. Two things happened with the speculative build up. First, Soros and others were working hard to tank the US economy to help the Rats in the buildup to the election. Oil & gas rose until they realized it was helping Republicans, not Rats (drill here, drill now, pay less.) As soon as the Pubs starting getting traction, prices tanked. Also, there's too much money out there with too few good investments. When the oil prices started spiking, a lot of people with no place better to put money stuck it in commodities, specifically oil, exaggerating the spike. When demand tanked and Soros and others pulled their money out, it accelerated the tanking, as legit investors pulled their investments at the time it became obvious oil wouldn't go up forever.
Thank Oba Mao and his ham-handed revocation of oil-leases in the four corners region, mainly Utah. The oil companies just got a clear message we are NOT serious about increasing supply, so they can increase prices at the pump even as prices of crude oil plummet. And the moonbats say Bush and Cheney were the best friend the oil companies could ever have!
WTH what’s with that?
Which is best oil price to pay attention too? WTI? Thanks
How much of the price of every barrel is manipulation and how much is free market?
THanks very much.
Refineries claim when gas was expensive, they didn’t make money. You know, the gas station owner / pauper argument where they basically claim to make a penny on every 20,000 gallons, as if they are selling gas at a loss as a public service. So now they can finally make money, so we shouldn’t mind that refineries are working together to bottleneck supply. Or so the argument goes.
June is only four months away. And thanks to the vastly superior insight of Øbama Hussein The Magnificent's "stimulus" to the economy their stored $43 brl crude might bring a shattering price of... $40.00.
Gasoline is more than just crude oil.
Hugo still has a lot of money left over from last year’s criminally high oil prices but he is now burning through it like a drunken sailor. Of all the oil exporting countries, Venezuela has probably been hurt the most because basically its entire economy runs on oil revenues and since last year that revenue has been cut by 75%.
So much for the free market theory....
1) Storage at Cushing, OK, which is the delivery point for WTI, is upwards of 33 MM bbls. The industry only needs 19-20 MM bbls, so there's relative oversupply, thus depressing WTI price more than other grades (and also creating/maintaining the huge month/month contango).
2) Brent supplies are growing tighter over time, and will continue to do so as the North Sea fields become more and more exhausted. This mitigates the general downtrend in crude prices with regard to Brent, making it relatively stronger (or relatively less weak, if you like).
Nymex Crude Future. WTI would be second. Dated Brent Spot is kinda useless now, for we here in the u.S. It’s just to far away from our situation.
I've pinged our resident FR oil expert on this, but I'll try to answer it myself . . .
I believe gasoline prices have risen in February because the spot price of oil for February delivery actually rose while the price for future contracts has been falling recently.
I am beginning to get it. Looks like we will have far different prices all over the country due to local input tax wise, federal and excise taxes.
Slide, hell....the gas prices here continue to rise.
I am surpsrised there are no new finds for Brent oil.
Always remember that the OPEC basket is comprised **mostly** of sour crudes, and thus will be lower than WTI in virtually all mkt situations.
of course they do now that they have seen what you will pay for gas to provide a living for your family....
Brazil's ocean find, by comparison, is much more easily accessible. Be interesting to see how quickly they start producing, and how much. The potential is gigantic.
Yes, your logic. The price of gasoline includes many more variables than just the cost of oil. On top of that, there are usual fluctuations when it comes to winter/spring transition because of home heating oil and gasoline production/storage capacities, as well as outages for turnarounds. On top of that, we import the end product of gasoline, which also has a supply/demand influence. In summary, its not as simple as $70/$2 per gal = $35/$1 per gal
I thought we didnt have enough refineries?
NYMEX Crude is WTI.
Does the spending bill include an increase in the gas tax?
If you look at NYMEX the asking price on RBOB (which is a blend stock of gasoline) is around $1.28. When oil was around $35 bbl a couple months ago the RBOB asking price was about $.98. When you see this happening the only thing it can mean is that gasoline production is down. That means the refineries are no longer cranking at full capacity 24/7.
This also means that the refining system has the capacity to absorb some of the current fluctuation in the oil market without raising gasoline prices any further. Whether they do that or not is another question.
Yeah I am getting it the taxes as well.
I wonder if its just normal maintenance or profiteering at our expense.
Many thanks for telling Freepers what oil benchmarks we should be paying attention to. Brent is always out of wack these days. 10$ above the oil prices more commonly quoted
What’s interesting to me is that gold is trending up, USD is up and stable, and crude is trending down. This is good for America
The minute the economy shows any signs whatever of beginning to return to normalcy, count on the Osamabama goobermint to take every measure it can think of to force the price of crude and products much higher.
Just good business. Demand is down so they are lowering supply. The market is absorbing the price increase so far, so there is little to no incentive to lower price or increase supply.
There are some small finds from time to time, but that area was heavily explored for decades.
Very few people here realize that the price varies from region to region and state to state because of the large variations of additives and blends that are required by mandated laws. (Methanol, ethanol, lead substitutes, etc,)
This makes the price rather chaotic and seem abnormally high in areas that require these “blends”.
Federal and state fuel taxes in Washington are $.524/gallon, fifth highest in the country.