Posted on 07/16/2008 1:37:44 PM PDT by 300magnum
SAN FRANCISCO (MarketWatch) -- Crude-oil futures fell over $4 a barrel Wednesday, leaving crude with its biggest two-day drop in 17 years, after government data showed a surprise increase in U.S. petroleum inventories.
U.S. crude inventories rose 3 million barrels to stand at 296.9 million barrels in the week ended July 11, the Energy Information Administration reported. Analysts surveyed by energy-information provider Platts were expecting a drop of 3 million barrels.
"If there is anything that should keep the bulls in the corral while the bears feed in the berry patch, this EIA report is it," said James Williams, an economist at energy research firm WTRG Economics.
Crude for August delivery closed down $4.14, or 3%, at $134.60 a barrel on the New York Mercantile Exchange, the lowest since June 25. Crude has lost $10.58 over the last two sessions, the biggest two-day price drop since January, 1991. It's now 8.6% lower than the $147.27 record high hit last Thursday.
Earlier in the session, futures slumped $6.74 to an intraday low of $132, the lowest for a front-month contract since June 12.
'Demand destruction'
The unexpected gains in last week's U.S. inventories "could indicate that the idea of real global demand destruction is finally beginning to take hold in the marketplace," said Robert Arber, an analyst at financial information provider Stockhouse.com.
EIA's latest report showed fuel demand is falling. Over the last four weeks, U.S. motor gasoline demand has averaged 9.3 million barrels per day, down by 2.1% from the same period last year, the EIA said.
Concerns that slowing economic growth will dampen oil consumption triggered broad sell-off in energy on Tuesday. Crude had closed down $6.44, the biggest one-day drop in price for a front-month contract since January 1991. It plunged $9.26 a barrel
(Excerpt) Read more at marketwatch.com ...
i have cut back on driving...even though i drive a 30mpg honda
I’m actually carpooling for the first time in my life.
Guess that’s what did it.
Wonder what will happen to all that oil sitting in tankers "offshore and off the books?!?"
Watch the Iranian Hitler try to fire some missiles soon to keep oil from droping. Russia has one of the biggest vested interests in keeping oil prices highest as well so watch them use one of their proxies to stir up some trouble as well.
What is "global demand destruction"?
Prices here have dropped six cents in four days. Of course, it’s still $4.11 a gallon, but there’s a station about 15 miles away selling it for under four dollars.
Seeing $134.60 a barrel is nothing to celebrate IMHO...
I quit driving my F250 to work as well.
You are most likely correct, I believe it is the MAIN reason that the price of oil dropped. BTW, what is the price at this moment, it supposedly dropped 9 bucks yesterday, does the 4 dollar figure here mean it came up 5 bucks or dropped another 4 bucks?
Prices in CA haven’t dropped even one cent.
BINGO!
I think that's tech speak for the oil bubble popping. Someone correct me if I'm wrong.
Got that right. I filled up yesterday for 3.97. Today it’s 4.09.
Hmmm... oil down around $9 yesterday, and another $4 today - no wonder the local stations raised prices 14 cents in 24 hours....
/sarcasm
I’ve been on vacation this week and my car (’91 Corolla) hasn’t moved since Sunday. Take that, you greasers.
No it isn't. I'll accept $65-70, and even that is too much for 'easy oil". But there has to be incentive to drill heavy oil and deep wells.
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