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Oil slides toward multiyear lows
Yahoo / AP ^ | 02/12/2009 | EagleUSA

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 ...


TOPICS: Business/Economy; Crime/Corruption; Government; Politics/Elections
KEYWORDS: economy; energy; fear; gasprices; obama; oil; oilprices; porkulus; stimulusscam
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Keep up the good work socialists!!!! The world has so much faith in your pork and payback scam.
1 posted on 02/12/2009 8:59:46 AM PST by EagleUSA
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To: EagleUSA

howcome gas is still 2.18/gal here in Seattle???


2 posted on 02/12/2009 9:01:35 AM PST by rahbert
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To: EagleUSA

Boo - Freakin’ - Hoo!


3 posted on 02/12/2009 9:01:58 AM PST by TommyDale (I) (Never forget the Republicans who voted for illegal immigrant amnesty in 2007!)
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To: EagleUSA
What's with Brent Crude? It's always much higher than the other crude. I don't recall that happening before.
4 posted on 02/12/2009 9:02:33 AM PST by rodguy911 (HOME OF THE FREE BECAUSE OF THE BRAVE--GO SARAHCUDA !!)
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To: EagleUSA

How’s that supertanker stock and float strategy for speculators working? LOL ...


5 posted on 02/12/2009 9:02:33 AM PST by mgc1122
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To: EagleUSA

More bad news for Hugo.


6 posted on 02/12/2009 9:03:40 AM PST by lormand (...don't blame me, I never vote democRAT)
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To: EagleUSA

$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.


7 posted on 02/12/2009 9:03:53 AM PST by rodguy911 (HOME OF THE FREE BECAUSE OF THE BRAVE--GO SARAHCUDA !!)
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To: EagleUSA

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...


8 posted on 02/12/2009 9:04:05 AM PST by tatsinfla
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To: rodguy911
You are right... Brent is primarily refined in Northwest Europe. Typical price difference per barrel is about $1 less than WTI, and $1 more than OPEC Basket. However, in 2007 Brent Crude futures have been trading at a premium to WTI of approximately $1 to $3 (NOT $9 to $10) per barrel. The depletion of the North Sea oil fields is one explanation for the divergence in prices.
9 posted on 02/12/2009 9:08:59 AM PST by TLI ( ITINERIS IMPENDEO VALHALLA)
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To: All

>>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?


10 posted on 02/12/2009 9:09:57 AM PST by excalibur1701
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To: rodguy911
Something is screwed up.

The refiners have cut production way down to make more money from a bottlenecked supply.
11 posted on 02/12/2009 9:10:30 AM PST by mysterio
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To: tatsinfla

$2.20-ish in SoCal. I bottomed out at $1.52 at Costco. Now they want to add another $.12 per gallon tax.


12 posted on 02/12/2009 9:10:30 AM PST by hoppity
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To: TLI
Gotcha thanks, I was always wondered about that,aren't they having any new finds/discoveries up there? Quite a discrepancy right now.
13 posted on 02/12/2009 9:11:32 AM PST by rodguy911 (HOME OF THE FREE BECAUSE OF THE BRAVE--GO SARAHCUDA !!)
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To: rodguy911
Two things. First, there's a point below which it's simply not profitable to pump. Second, check the taxes. If gas were free, a lot of people in a lot of states would still be paying 70 to 80 cents per gallon, just to cover the taxes.

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.

14 posted on 02/12/2009 9:11:36 AM PST by Richard Kimball (We're all criminals. They just haven't figured out what some of us have done yet.)
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To: tatsinfla
and yet gas continues to creep upwards on a daily basis....

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!

15 posted on 02/12/2009 9:11:59 AM PST by Vigilanteman (Are there any men left in Washington? Or, are there only cowards? Ahmad Shah Massoud)
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To: excalibur1701
I thought we didn’t have enough refineries

We don't have enough when people have jobs. But now a whole lot less people need gas to drive to work.
16 posted on 02/12/2009 9:12:02 AM PST by mysterio
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To: mysterio

WTH what’s with that?


17 posted on 02/12/2009 9:12:10 AM PST by rodguy911 (HOME OF THE FREE BECAUSE OF THE BRAVE--GO SARAHCUDA !!)
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To: TLI

Which is best oil price to pay attention too? WTI? Thanks


18 posted on 02/12/2009 9:12:22 AM PST by dennisw (Archimedes--- Give me a place to stand, and I will move the Earth)
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To: Richard Kimball

How much of the price of every barrel is manipulation and how much is free market?


19 posted on 02/12/2009 9:13:47 AM PST by rodguy911 (HOME OF THE FREE BECAUSE OF THE BRAVE--GO SARAHCUDA !!)
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To: Richard Kimball

THanks very much.


20 posted on 02/12/2009 9:14:03 AM PST by rodguy911 (HOME OF THE FREE BECAUSE OF THE BRAVE--GO SARAHCUDA !!)
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To: rodguy911

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.


21 posted on 02/12/2009 9:15:01 AM PST by mysterio
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To: mgc1122
How’s that supertanker stock and float strategy for speculators working? LOL ...

Bar-har-har-har-har-har-har!

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.

22 posted on 02/12/2009 9:15:16 AM PST by TLI ( ITINERIS IMPENDEO VALHALLA)
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To: rodguy911
$35 per barrel should be $1.00 a gallon for 87 octane

Gasoline is more than just crude oil.


23 posted on 02/12/2009 9:16:11 AM PST by thackney (life is fragile, handle with prayer)
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To: lormand

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%.


24 posted on 02/12/2009 9:16:12 AM PST by Larry381 (Politicians are like diapers - they should be changed frequently, and for the same reason)
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To: mysterio

So much for the free market theory....


25 posted on 02/12/2009 9:17:43 AM PST by rodguy911 (HOME OF THE FREE BECAUSE OF THE BRAVE--GO SARAHCUDA !!)
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To: rodguy911
Because you've got two things working for the Brent/WTI spread.

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).

26 posted on 02/12/2009 9:18:00 AM PST by SAJ
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To: dennisw

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.


27 posted on 02/12/2009 9:18:42 AM PST by TLI ( ITINERIS IMPENDEO VALHALLA)
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To: rahbert; thackney
howcome gas is still 2.18/gal here in Seattle???

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.

28 posted on 02/12/2009 9:18:50 AM PST by Alberta's Child (I'm out on the outskirts of nowhere . . . with ghosts on my trail, chasing me there.)
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To: thackney

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.


29 posted on 02/12/2009 9:19:30 AM PST by rodguy911 (HOME OF THE FREE BECAUSE OF THE BRAVE--GO SARAHCUDA !!)
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To: EagleUSA

Slide, hell....the gas prices here continue to rise.


30 posted on 02/12/2009 9:20:07 AM PST by Logic n' Reason (Welcome, one and all, to the islamo-muslim states of obammica!)
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To: SAJ

I am surpsrised there are no new finds for Brent oil.


31 posted on 02/12/2009 9:20:36 AM PST by rodguy911 (HOME OF THE FREE BECAUSE OF THE BRAVE--GO SARAHCUDA !!)
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To: dennisw
You should follow 3 figures: WTI, the OPEC basket price, and either Brent or Urals. A simple average of the 3 prices will give you a good perspective on what crude is **really** doing.

Always remember that the OPEC basket is comprised **mostly** of sour crudes, and thus will be lower than WTI in virtually all mkt situations.

32 posted on 02/12/2009 9:21:45 AM PST by SAJ
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To: hoppity

of course they do now that they have seen what you will pay for gas to provide a living for your family....


33 posted on 02/12/2009 9:22:10 AM PST by tatsinfla
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To: rodguy911
One of the most hostile drilling environments in the world. Same goes for Forties grade crude.

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.

34 posted on 02/12/2009 9:23:20 AM PST by SAJ
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To: rodguy911
$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.

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

35 posted on 02/12/2009 9:23:52 AM PST by Go Gordon
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To: excalibur1701

I thought we didn’t have enough refineries?


Correct. When the the supply curve is artifically suppressed, the producers can (extent depending on degree of course) begin to act as a market maker rather than a price taker.


36 posted on 02/12/2009 9:24:33 AM PST by Rippin
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To: TLI
Nymex Crude Future. WTI would be second

NYMEX Crude is WTI.

http://www.nymex.com/CL_spec.aspx

37 posted on 02/12/2009 9:24:33 AM PST by thackney (life is fragile, handle with prayer)
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To: excalibur1701

Does the spending bill include an increase in the gas tax?


38 posted on 02/12/2009 9:25:30 AM PST by Sig Sauer P220 (There ought to be one day -- just one -- when there is open season on Senators --- Will Rogers)
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To: rodguy911

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.


39 posted on 02/12/2009 9:26:16 AM PST by Comstock1 (If it's a miracle, Colour Sergeant, it's a short chamber Boxer Henry .45 caliber miracle.)
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To: SAJ
Too bad there is absolutely no oil available in the US! `~s
40 posted on 02/12/2009 9:26:26 AM PST by rodguy911 (HOME OF THE FREE BECAUSE OF THE BRAVE--GO SARAHCUDA !!)
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To: Go Gordon

Yeah I am getting it the taxes as well.


41 posted on 02/12/2009 9:27:05 AM PST by rodguy911 (HOME OF THE FREE BECAUSE OF THE BRAVE--GO SARAHCUDA !!)
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To: Comstock1

I wonder if its just normal maintenance or profiteering at our expense.


42 posted on 02/12/2009 9:28:35 AM PST by rodguy911 (HOME OF THE FREE BECAUSE OF THE BRAVE--GO SARAHCUDA !!)
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To: TLI; SAJ

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


43 posted on 02/12/2009 9:29:30 AM PST by dennisw (Archimedes--- Give me a place to stand, and I will move the Earth)
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To: EagleUSA
Barrel price drops, per gallon gas jumps around here. Every dollar it goes down, it goes up cents here.
44 posted on 02/12/2009 9:29:58 AM PST by RetiredArmy (Oscuma is a dope smoking, Chicago gangland punk- street thug. Simple as that.)
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To: rodguy911
And different gasoline requirements.


45 posted on 02/12/2009 9:31:13 AM PST by thackney (life is fragile, handle with prayer)
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To: rodguy911
Not if Osamabama has his way.

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.

46 posted on 02/12/2009 9:31:33 AM PST by SAJ
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To: rodguy911

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.


47 posted on 02/12/2009 9:31:50 AM PST by Comstock1 (If it's a miracle, Colour Sergeant, it's a short chamber Boxer Henry .45 caliber miracle.)
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To: rodguy911

There are some small finds from time to time, but that area was heavily explored for decades.


48 posted on 02/12/2009 9:32:20 AM PST by thackney (life is fragile, handle with prayer)
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To: rodguy911

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”.


49 posted on 02/12/2009 9:32:37 AM PST by PSYCHO-FREEP (WHAT? Where did my tag line go? (ACORN))
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To: rahbert
howcome gas is still 2.18/gal here in Seattle???

Federal and state fuel taxes in Washington are $.524/gallon, fifth highest in the country.

50 posted on 02/12/2009 9:34:35 AM PST by SeaHawkFan
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