Morgan Stanley (NYSE:MS) acquired Forties cargo from Trafigura Beheer BV, the third acquisition they made of the North Sea grade this week.
The latest acquisition by Morgan Stanley was for October 11 to October 14, paying a premium of 10 cents over Dated Brent, according to the financial institution.
For BP, their acquisition was from Royal Dutch Shell Plc (NYSE:RDS-A) for October 7 to October 9 loading. They paid close to 30 cents above Dated Brent, which was 19 cents below the cash cost of North Sea oil.
Shell purchased Forties from Total SA (NYSE:TOT) for October 4 to October 6, paying 20 cents above Dated Brent, according to the two companies.
The November settlement for Brent crude traded at $77.65 a barrel, while the December contract traded at $77.97, generating a contango of 32 cents between the two contracts. Both were in reference to the London-based ICE Futures Europe exchange.
Showing posts with label Brent Crude. Show all posts
Showing posts with label Brent Crude. Show all posts
Thursday, September 23, 2010
Tuesday, December 30, 2008
Crude Oil Poised for First Annual Decline in Seven Years
With consumers tightening their wallets over economic concerns, crude oil will suffer its first annual decline in seven years, as supplies rise over decreasing demand.
On the New York Mercantile Exchange, prices fell 99 cents for February delivery of crude oil, settling at $39.03 a barrel. Earlier in the day it fell below $38 a barrel. So far this year oil prices are down by 59 percent.
Crude-oil inventory fell last week by 1.45 million barrels, while on the other hand, according to analysts' estimates, gasoline stockpiles are rising, with projections of an extra 1.7 million barrels added for the week ending December 26.
Also increasing were heating oil, diesel, and other distillate fuel supplies, adding 1.5 million barrels to the inventory.
On London's ICE Futures Europe exchange, Brent crude oil fell by 40 cents to end the session at $40.15 a barrel.
I don't see anything changing the primary fundamental of declining oil demand changing any time soon, and that should be the key element to watch with oil, barring any geopolitical problems that may unfold.
On the New York Mercantile Exchange, prices fell 99 cents for February delivery of crude oil, settling at $39.03 a barrel. Earlier in the day it fell below $38 a barrel. So far this year oil prices are down by 59 percent.
Crude-oil inventory fell last week by 1.45 million barrels, while on the other hand, according to analysts' estimates, gasoline stockpiles are rising, with projections of an extra 1.7 million barrels added for the week ending December 26.
Also increasing were heating oil, diesel, and other distillate fuel supplies, adding 1.5 million barrels to the inventory.
On London's ICE Futures Europe exchange, Brent crude oil fell by 40 cents to end the session at $40.15 a barrel.
I don't see anything changing the primary fundamental of declining oil demand changing any time soon, and that should be the key element to watch with oil, barring any geopolitical problems that may unfold.
Tuesday, November 11, 2008
Crude Drops Below $59 a Barrel as Demand Expectations Continue to Fall
Healthy assumptions that the International Energy Agency (IEA) will lower its forecast for oil demand in 2009, again drove crude oil prices down, as it settled at $59.33 barrel; it's lowest close since March 2007.
A number of factors, including the increasing strength of the U.S. dollar and the anemic equity markets continue to put downward pressure on energy prices.
So far the original 2008 forecast has been revised downward seven times this year, dropping usage by close to 1.3 million barrels a day.
Gasoline prices are mirroring the crude price drop, as regular gasonline across the U.S. dropped to an average of $2.22 a gallon, said the AAA.
On London's ICE Futures Europe exchange, Brent crude oil fell $3.37 for December delivery, settling at $55.71 a barrel.
A number of factors, including the increasing strength of the U.S. dollar and the anemic equity markets continue to put downward pressure on energy prices.
So far the original 2008 forecast has been revised downward seven times this year, dropping usage by close to 1.3 million barrels a day.
Gasoline prices are mirroring the crude price drop, as regular gasonline across the U.S. dropped to an average of $2.22 a gallon, said the AAA.
On London's ICE Futures Europe exchange, Brent crude oil fell $3.37 for December delivery, settling at $55.71 a barrel.
Tuesday, October 28, 2008
Weak Demand Driving Oil Prices Down, Not Supply
While OPEC Secretary-General Abdalla el-Badri said the leaders of countries will definitely get together again if the recent daily cut of 1.5 million barrels in oil production doesn't curb plunging prices, it won't really matter, as it's not supply driving prices down, but demand.
Jittery consumers will continue to cut back on driving and traveling in response to the credit crisis and economic weakness.
"Until you see a change in economic sentiment, there won't be any sustained rallies in the oil market," said Kyle Cooper, an analyst at IAF Advisors in Houston. OPEC "can announce all the cuts they like and the market will ignore it."
Even if there is another meeting and decisions made to drop daily production more, it's doubtful all the countries would be willing or able to comply with the agreement anyway, which would do more harm to OPEC than help, as it would make it look even more desparate.
A number of OPEC countries are in great need for cash just like most countries around the world.
Gasoline usage dropped again last week, falling by 6.4 percent from the same period a year ago. Declining prices at the gas stations did nothing to jumpstart demand.
Crude oil closed down 49 cents today for December delivery, settling at $62.73 a barrel on the New York Mercantile Exchange.
In after-hour trading it rebounded some to $64.37 a barrel at about 4:00 EST.
On the London Ice Futures Europe exchange, Brent crude fell another $1.12, to settle at $60.29 a barrel.
Jittery consumers will continue to cut back on driving and traveling in response to the credit crisis and economic weakness.
"Until you see a change in economic sentiment, there won't be any sustained rallies in the oil market," said Kyle Cooper, an analyst at IAF Advisors in Houston. OPEC "can announce all the cuts they like and the market will ignore it."
Even if there is another meeting and decisions made to drop daily production more, it's doubtful all the countries would be willing or able to comply with the agreement anyway, which would do more harm to OPEC than help, as it would make it look even more desparate.
A number of OPEC countries are in great need for cash just like most countries around the world.
Gasoline usage dropped again last week, falling by 6.4 percent from the same period a year ago. Declining prices at the gas stations did nothing to jumpstart demand.
Crude oil closed down 49 cents today for December delivery, settling at $62.73 a barrel on the New York Mercantile Exchange.
In after-hour trading it rebounded some to $64.37 a barrel at about 4:00 EST.
On the London Ice Futures Europe exchange, Brent crude fell another $1.12, to settle at $60.29 a barrel.
Wednesday, October 22, 2008
Crude Oil Prices Continue to Fall off the Cliff: Now at 15-Month Low
In intraday trading crude oil fell of the cliff again, plunging by over $4 a barrel - a 15-month low. The continued fall in oil prices is completely tied to consumer demand, which has dropped as people cut back on spending on anything but essentials.
December delivery for crude oil dropped by $4.25 to $67.93 a barrel shortly after 11:00 a.m. EST today on the NYMEX. Oil futures hit a low of $67.50, the worst showing since June 27, 2007.
On London's ICE Futures Europe exchange, Brent crude has dropped by $3.40 for the December settlement, a 4.9 percent fall. It now stands at $66.32 a barrel. That's the lowest price since May 10, 2007.
For the week ending October 17, fuel demand in the U.S. averaged 18.7 million barrels a day, according to the report of the Energy Department released today. That's down 8.5 percent from the same period last year.
Average use of gasoline has also fallen, now averaging 8.8 million barrels a day for the last four weeks, down from last year by 4.3 percent.
With distillate fuel (heating oil, diesel) use also dropping significantly, we can see demand for oil will continue to fall for some time.
Even though the unprecedented special meeting by OPEC next month is expected to result in the cutback of 1 million barrels a day in production, that will do nothing to change the demand factor until the global economy recovers. That isn't going to happen any time soon.
Part of the result of all this will be less travel, which will affect not only oil companies, but airlines and shipping companies as well.
Oil inventories also continue to rise, as there was an increase of 3.18 millon barrels to 311.4 million barrels, the fourth time in a row.
December delivery for crude oil dropped by $4.25 to $67.93 a barrel shortly after 11:00 a.m. EST today on the NYMEX. Oil futures hit a low of $67.50, the worst showing since June 27, 2007.
On London's ICE Futures Europe exchange, Brent crude has dropped by $3.40 for the December settlement, a 4.9 percent fall. It now stands at $66.32 a barrel. That's the lowest price since May 10, 2007.
For the week ending October 17, fuel demand in the U.S. averaged 18.7 million barrels a day, according to the report of the Energy Department released today. That's down 8.5 percent from the same period last year.
Average use of gasoline has also fallen, now averaging 8.8 million barrels a day for the last four weeks, down from last year by 4.3 percent.
With distillate fuel (heating oil, diesel) use also dropping significantly, we can see demand for oil will continue to fall for some time.
Even though the unprecedented special meeting by OPEC next month is expected to result in the cutback of 1 million barrels a day in production, that will do nothing to change the demand factor until the global economy recovers. That isn't going to happen any time soon.
Part of the result of all this will be less travel, which will affect not only oil companies, but airlines and shipping companies as well.
Oil inventories also continue to rise, as there was an increase of 3.18 millon barrels to 311.4 million barrels, the fourth time in a row.
Wednesday, October 15, 2008
Oil Plunges to 13-month Low on Demand Concerns
Concerns over the global economy continues to pummel oil prices, as it dropped to a 13-month low below $71 a barrel early Wednesday. Demand continues to shrink as consumers cut back on spending.
Most of this is based on the biggest oil consumer in the world, the U.S., where demand continues to diminish over the financial crisis.
November delivery for Brent North Sea crude fell to $70.70 a barrel, a $3.6 drop from Tuesday's close.
Delivery for November light sweet crude in New York also experienced a significant drop, falling as low as $74.93 a barrel, before recovering to $75.23 a barrel.
OPEC, which has taken the unusual step of meeting a month before their scheduled December meeting, has cut back its 2009 estimate for demand, citing the continuing economic climate in the U.S.
On Thursday there'll be an update on where U.S energy inventory stand, which will give a clearer picture on how the demand factor is playing out in the country.
Most of this is based on the biggest oil consumer in the world, the U.S., where demand continues to diminish over the financial crisis.
November delivery for Brent North Sea crude fell to $70.70 a barrel, a $3.6 drop from Tuesday's close.
Delivery for November light sweet crude in New York also experienced a significant drop, falling as low as $74.93 a barrel, before recovering to $75.23 a barrel.
OPEC, which has taken the unusual step of meeting a month before their scheduled December meeting, has cut back its 2009 estimate for demand, citing the continuing economic climate in the U.S.
On Thursday there'll be an update on where U.S energy inventory stand, which will give a clearer picture on how the demand factor is playing out in the country.
Monday, October 13, 2008
Oil Prices Rise on Enthusiasm, not Fundamentals
Oil prices increased by $3.49 to end the session at $81.19 a barrel for November delivery, as leaders presented a unity to the world in an effort to shore up confidence in the global marketplace. Oil basically rose on that euphoria, rather than any change in fundamentals.
Brent North Sea crude in London gained close to light sweet crude in the U.S., as it increased by $3.37 a barrel to $77.46.
Even so, the slowing demand for oil hasn't changed, and nothing, other than the possibility that the emergency meeting by OPEC next month may result in resistance to downward price pressures, will stop the price of oil from continuing to fall. They would attempt to do that by lowering production levels.
If they were to do that, there would probably be significant international pressure for them to keep production levels close to where they are.
In other financial news, the Dow Jones Industrial Average recorded its highest one-day point gain in history, gold continues to fall, and the U.S. dollar fell against many major currencies, even though an unprecedented unlimited dollar fund auction will be held by the central banks of several nations.
Brent North Sea crude in London gained close to light sweet crude in the U.S., as it increased by $3.37 a barrel to $77.46.
Even so, the slowing demand for oil hasn't changed, and nothing, other than the possibility that the emergency meeting by OPEC next month may result in resistance to downward price pressures, will stop the price of oil from continuing to fall. They would attempt to do that by lowering production levels.
If they were to do that, there would probably be significant international pressure for them to keep production levels close to where they are.
In other financial news, the Dow Jones Industrial Average recorded its highest one-day point gain in history, gold continues to fall, and the U.S. dollar fell against many major currencies, even though an unprecedented unlimited dollar fund auction will be held by the central banks of several nations.
Wednesday, October 1, 2008
Oil Prices Continue to Drop as U.S. Demand Slackens
While the price of oil fluctuated significantly today, by the end of the day it settled more toward the lower end, ending at $98.53 for November delivery on the New York Mercantile Exchange (NYMEX). Prices continue to influence the amount Americans are willing to drive, affecting the overall demand.
Prices for the day went from a low of $95.95 a barrel to as high as $102.84.
For the week ending September 26, crude stock rose 1.5 percent by 4.3 million barrels, reaching 294.5 million barrels overall. That was close to three times what some analysts expected.
As far as gasoline inventories go, they rose to 900,000 barrels to 179.6 million barrels. Analysts were looking for a drop of 1 million to 3 million barrels.
Much of the discrepancy comes from the quick turnaround of U.S. refineries after the hurricane damage, along with the decreasing amount of miles consumers are traveling.
On the ICE Futures exchange in London, delivery for Novemeber Brent crude dropped by $2.84 to settle at $95.33 a barrel.
Prices for the day went from a low of $95.95 a barrel to as high as $102.84.
For the week ending September 26, crude stock rose 1.5 percent by 4.3 million barrels, reaching 294.5 million barrels overall. That was close to three times what some analysts expected.
As far as gasoline inventories go, they rose to 900,000 barrels to 179.6 million barrels. Analysts were looking for a drop of 1 million to 3 million barrels.
Much of the discrepancy comes from the quick turnaround of U.S. refineries after the hurricane damage, along with the decreasing amount of miles consumers are traveling.
On the ICE Futures exchange in London, delivery for Novemeber Brent crude dropped by $2.84 to settle at $95.33 a barrel.
Wednesday, September 17, 2008
Light Sweet Crude Oil in big $6.01 Increase
Investors continued to move their money out of equities and put it in commodities, as oil was a beneficiary of the recent economic bad news which has hammered the financial companies. AIG was the main culprit today in moving commodities up.
October delivery for light sweet crude in New York surged by $6.01 dollars to finish the session at $97.16.
Across the pond Brent North Sea crude also moved upward by $5.62 to end at $94.84.
The U.S Department of Energy says that over the last month oil-based product use has fallen by 4.4 percent over the same time last year.
Recent bad weather has also caused a drop of 6.3 million barrels in the U.S reserves.
Even with the gain today, prices have dropped by $55 a barrel since the July 11 high of $147 a barrel.
October delivery for light sweet crude in New York surged by $6.01 dollars to finish the session at $97.16.
Across the pond Brent North Sea crude also moved upward by $5.62 to end at $94.84.
The U.S Department of Energy says that over the last month oil-based product use has fallen by 4.4 percent over the same time last year.
Recent bad weather has also caused a drop of 6.3 million barrels in the U.S reserves.
Even with the gain today, prices have dropped by $55 a barrel since the July 11 high of $147 a barrel.
Friday, September 5, 2008
Oil Drops to 5-month Low on Weak Demand, other Factors
Oil continues to plunge from its record high which reached $147 a barrel in July, as it dropped by over $2 a barrel, after settling the lowest on Thursday since April 4. Brent crude followed suit in London as it declined by over $2 a barrel as well, finishing at $103.95.
With China decreasing imports after the Olympics and consumers driving less, oil prices will probably continue to fall. Other factors include the ongoing storm season and the unknown decision by OPEC on what it will do going ahead. The weak U.S and world economy will continue to affect the price also.
The rise in value of the U.S. dollar will also continue to drive down oil prices.
With the Louisiana Offshore Oil Port, (largest oil-import terminal in the U.S.) saying they started offloading oil tankers early Thursday morning, it's also thought it could help keep oil prices down because of the quick resumption of delivery.
Thursday, August 7, 2008
Oil Fluctuates on Slowing Demand, Attack on Turkish Pipeline
Oil continued its recent swing as opposing news stories had it going up and down.
On the one hand the price surged to $121 a barrel when news of the attack on the Turkish-based Baku-Tbilisi-Ceyhan pipeline, earlier in the day, by the PKK (separatist group Kurdistan Workers' Party), caused the upswing. It's estimated the pipeline could be closed for up to 15 days.
The other factor continues to be the cutting back on fuel use, as Americans continue to travel less during the summer months.
Residual effects of the drop in oil prices is also showing up at the gas pumps as overnight prices fell by a little over a penny to a national average of $3.849 a gallon; about 6 percent off it's highs last month of over $4 a gallon.
In afternoon trading, light, sweet crude rose by 21 cents to $188.79 a barrel on the NYMEX for September delivery, while Brent crude in London increased by 16 cents to $117.16 a barrel.
Friday, May 2, 2008
New York Oil Increases by $3, Largest Gain in Month
June delivery of crude oil increased $3.80 to settle at $116.32 a barrel on the Nymex Friday, it's first rise in four days, and the largest gain in a month.
For Brent crude, June delivery gained even more, as it grew by $4.06 percent to $114.56 on London's ICE Futures Europe exchange. That's the largest increase since March 18.
Although some blamed the air strike by Turkey on Kurdish rebels in Iraq as part of the reason for the surge, it couldn't account for the whole gain. It's probably investors getting back into the market, taking advantage of lower prices.
"News of the Turkish air attacks turned us around overnight, but it doesn't explain a $3 gain," said Tom Bentz, a broker at BNP Paribas in New York. "More than any headline in particular, we are just seeing investors come in to take advantage of the dip in prices this week."
OPEC
This is one of the reasons OPEC continues to resist increasing production, as they primarily blame the increase in oil prices on speculators of oil futures.
"OPEC will not increase production of crude oil because what is happening now is not an increase in oil demand, but heavy speculation on oil futures," Qatari Oil Minister Abdullah al-Attiyah said today. "That's what's making oil prices so high."
For Brent crude, June delivery gained even more, as it grew by $4.06 percent to $114.56 on London's ICE Futures Europe exchange. That's the largest increase since March 18.
Although some blamed the air strike by Turkey on Kurdish rebels in Iraq as part of the reason for the surge, it couldn't account for the whole gain. It's probably investors getting back into the market, taking advantage of lower prices.
"News of the Turkish air attacks turned us around overnight, but it doesn't explain a $3 gain," said Tom Bentz, a broker at BNP Paribas in New York. "More than any headline in particular, we are just seeing investors come in to take advantage of the dip in prices this week."
OPEC
This is one of the reasons OPEC continues to resist increasing production, as they primarily blame the increase in oil prices on speculators of oil futures.
"OPEC will not increase production of crude oil because what is happening now is not an increase in oil demand, but heavy speculation on oil futures," Qatari Oil Minister Abdullah al-Attiyah said today. "That's what's making oil prices so high."
Monday, April 28, 2008
Scotland and Nigeria Strikes Cause Another Oil Price Record
Crude oil prices reached another record today, as strikes in Scotland and Nigeria reduced output. Another factor causing prices to rise to $119.93 a barrel in New York is the continuing attacks in Nigeria on pipelines.
The Nigerian strike has now entered its fifth day, as production has decreased by 50 percent since April 25.
"As long as there are disruptions of high-quality crude supplies, prices are going to move higher," said Michael Lynch, president of Strategic Energy & Economic Research in Winchester, Massachusetts. "If the Nigerian strike isn't settled, we could easily see oil rise to $125 by the end of the week."
The two areas represented by the strike in the North Sea and Nigeria produce the low-sulfur oils which refiners prefer.
June delivery for crude oil climbed by 23 cents to finish at $118.75 a barrel on the Nymex. Brent Crude for June increased by 40 cents to settle at $116.74 a barrel on ICE Futures Europe exchange in London.
The strike in Scotland will only last for two days, as it was a protest over their pensions. Even so, it'll take about three weeks for the refinery to return to its full capacity of 200,000 barrels a day.
The Nigerian strike has now entered its fifth day, as production has decreased by 50 percent since April 25.
"As long as there are disruptions of high-quality crude supplies, prices are going to move higher," said Michael Lynch, president of Strategic Energy & Economic Research in Winchester, Massachusetts. "If the Nigerian strike isn't settled, we could easily see oil rise to $125 by the end of the week."
The two areas represented by the strike in the North Sea and Nigeria produce the low-sulfur oils which refiners prefer.
June delivery for crude oil climbed by 23 cents to finish at $118.75 a barrel on the Nymex. Brent Crude for June increased by 40 cents to settle at $116.74 a barrel on ICE Futures Europe exchange in London.
The strike in Scotland will only last for two days, as it was a protest over their pensions. Even so, it'll take about three weeks for the refinery to return to its full capacity of 200,000 barrels a day.
Friday, April 4, 2008
Oil News Around the Web
Big government, not Big Oil, is the big problem
Every time you fill up your 16-gallon gasoline tank, records suggest that companies like Exxon Mobil Corp. profit about $1.44 from your purchase. However, at the same time, from that same fill-up, the federal government receives $2.94, and Trenton pockets $2.32. The government is taking more than three times as much as the oil companies, and there's movement to add even more.
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Oil Futures Climb as Dollar Slides
U.S. crude oil prices closed more than $2 higher Friday, as the third straight drop in U.S. payrolls pushed the dollar down, drawing investors into commodities.
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Oil Rebounds After Decline
Crude oil futures rebounded this Friday in Bangkok, Thailand. The futures fell by $1 last night but the dollar stabilized, encouraging investors to sell. Previously, investors had been buying crude as a hedge against inflation.
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Oil prices spike near 106 dollars as US currency slides
Oil prices jumped close to 106 dollars on Friday as investor sentiment was driven by the weak US dollar, tight energy supplies and more bad news on the US economy, analysts said.
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South Texas Oil Company to Present at IPAA OGIS Small Cap Conference
South Texas Oil Company today announced that it will be a presenting company at the Independent Petroleum Association of America's (IPAA) Oil & Gas Investment Symposium in New York.
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Oil jumps as investors pour money back into commodities amid interest rate talk
Oil jumped as investors poured money back into commodities on expectations of an interest rate cut in the United States and in hope that raw materials will provide them with a useful hedge against wider market weakness.
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Venezuela's Congress OKs "windfall" oil tax
Venezuela's Congress on Thursday gave initial approval to a windfall oil tax that extends leftist President Hugo Chavez's campaign to increase government revenue from the OPEC nation's oil industry.
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Big Oil on the Grill
Energy companies are becoming progressively more vital to the maintenance of our modern lifestyle. That very fact renders them crucial for inclusion in virtually any portfolio.
=====
Every time you fill up your 16-gallon gasoline tank, records suggest that companies like Exxon Mobil Corp. profit about $1.44 from your purchase. However, at the same time, from that same fill-up, the federal government receives $2.94, and Trenton pockets $2.32. The government is taking more than three times as much as the oil companies, and there's movement to add even more.
=====
Oil Futures Climb as Dollar Slides
U.S. crude oil prices closed more than $2 higher Friday, as the third straight drop in U.S. payrolls pushed the dollar down, drawing investors into commodities.
=====
Oil Rebounds After Decline
Crude oil futures rebounded this Friday in Bangkok, Thailand. The futures fell by $1 last night but the dollar stabilized, encouraging investors to sell. Previously, investors had been buying crude as a hedge against inflation.
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Oil prices spike near 106 dollars as US currency slides
Oil prices jumped close to 106 dollars on Friday as investor sentiment was driven by the weak US dollar, tight energy supplies and more bad news on the US economy, analysts said.
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South Texas Oil Company to Present at IPAA OGIS Small Cap Conference
South Texas Oil Company today announced that it will be a presenting company at the Independent Petroleum Association of America's (IPAA) Oil & Gas Investment Symposium in New York.
=====
Oil jumps as investors pour money back into commodities amid interest rate talk
Oil jumped as investors poured money back into commodities on expectations of an interest rate cut in the United States and in hope that raw materials will provide them with a useful hedge against wider market weakness.
=====
Venezuela's Congress OKs "windfall" oil tax
Venezuela's Congress on Thursday gave initial approval to a windfall oil tax that extends leftist President Hugo Chavez's campaign to increase government revenue from the OPEC nation's oil industry.
=====
Big Oil on the Grill
Energy companies are becoming progressively more vital to the maintenance of our modern lifestyle. That very fact renders them crucial for inclusion in virtually any portfolio.
=====
Wednesday, April 2, 2008
Oil and Gas Prices Rise on Gas Inventory Drop
Crude oil surged by over $3 a barrel as reports from the U.S. Energy Department showed that the gas inventory fell for the third week.
Gasoline Inventory
Gasoline inventory fell to 224.7 million barrels, a 4.53 million barrel drop last week. That's the largest decrease in the gasoline supply since August.
"The robust supply cushion for gasoline appears to be vanishing before our eyes," said John Kilduff, vice president of risk management at MF Global Ltd. in New York.
May delivery for gasoline rose to $2.7745 a gallon, a 13.53 cent increase. Futures reached as high as $2.7836 a gallon for RBOB, the gasoline mixed with ethanol. That's a intraday record. RBOB started trading in October 2005.
"The gasoline drop was a real eye-opener," said Rick Mueller, director of oil practice at Energy Security Analysis Inc. "Supplies are falling when we aren't even close to the driving season. We should be building stocks ahead of the driving season, not seeing them drop."
Refineries
The report revealed that refineries were running at less capacity than the same week last year, as they operated at 82.2 percent, in contrast to 87 percent during the same period last year.
Inventory for crude oil increased by 7.32 million barrels, to end at 319.2 million barrels last week. Crude supplies increased by 1.8 million percent of the five-year average said the Energy Department.
"It's hard to argue that there is any problem with crude oil supplies," Mueller said. "At least in the U.S., refiners have plenty of crude oil on hand."
Crude oil futures for May delivery increased to $104.78 a barrel, a $3.80 rise.
Brent Crude
For Brent crude, May delivery increased to $103.75 a barrel on London's ICE Futures Europe exchange, a $3.58 percent rise.
Tuesday, March 25, 2008
Crude Oil in New York Falls for Fourth Day in a Row
With the drop in crude oil prices for the fourth day in a row in New York, it has caused speculation that the continually slowing U.S. economy will cause less demand for oil and result in growing reserves.
The strengthening of the U.S. dollar has also caused investors to move some of their money out of commodities, as its use as an inflation hedge is looked upon as over - at least for now.
"The sharp fall in commodities has prompted investors to reassess their investments," said David Moore, a commodity strategist at Commonwealth Bank of Australia in Sydney. "The perception is that the U.S. dollar has somewhat shifted and begs the question whether commodities are a good investment hedge."
On the NYMEX, oil fell as low as $99.66 a barrel in after-hours trading; about 1.2 percent overall. Since March 17, oil has plunged by 11 percent from the record $111.80 a barrel it reached at that time.
Brent crude for May fell to $99.07 a barrel, or 79 cents on London's ICE Futures Europe exchange. That's down from the $99.86 it finished at yesterday; the first time since March 4 it fell ended the session below $100 a barrel.
The strengthening of the U.S. dollar has also caused investors to move some of their money out of commodities, as its use as an inflation hedge is looked upon as over - at least for now.
"The sharp fall in commodities has prompted investors to reassess their investments," said David Moore, a commodity strategist at Commonwealth Bank of Australia in Sydney. "The perception is that the U.S. dollar has somewhat shifted and begs the question whether commodities are a good investment hedge."
On the NYMEX, oil fell as low as $99.66 a barrel in after-hours trading; about 1.2 percent overall. Since March 17, oil has plunged by 11 percent from the record $111.80 a barrel it reached at that time.
Brent crude for May fell to $99.07 a barrel, or 79 cents on London's ICE Futures Europe exchange. That's down from the $99.86 it finished at yesterday; the first time since March 4 it fell ended the session below $100 a barrel.
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