Oil Joins Other Commodities in Steep Losses

After dropping by $4.56 yesterday, oil futures continued to plunge in after-hours trading, falling another 1.2 percent to as low as $92.81 on the New York Mercantile Exchange.

Other commodities have been struggling as well, as the Reuters/Jefferies CRB Index of 19 commodities was down to its lowest level in close to a year, with corn, copper and silver especially losing; all of them in their worst weekly drop in over 20 years.

For the week oil is down 13 percent, as concerns of demand continuing to fall because of fears about the poor economic conditions. The report by the Labor Department showed jobless claims for the week ending September 27 are their highest since September 2001,

Since the high of $147.27 on July 11, oil has fallen by 37 percent.

The use of fuel in the U.S. also fell to its lowest level since October 2001, averaging only 19 million barrels a day.

With the economic news seemingly getting worse by the day, there are an increasing number of people questioning the validity of spending $700 billion on a bailout that probably will make no difference at all, and in will all likelihood make the problems last longer than if we would just let it work its way through the market.

As far as gasoline prices, we're seeing them drop, but they're lagging behind the decline in oil prices as it's taking a little time for refineries to get back on line. Once that happens we should see gas prices start to mirror more closely the oil price drops.

Shell Says Nigerian Pipeline Attack will have Minimal Impact on Oil Production

Shell said the recent attack on an oil supply pipeline in southern Nigeria won't have too much impact on oil production, after it found a leak on a pipeline connected to teh Bonny exports terminal - the largest in Nigeria.

"We discovered there was a major leak on the Greater Port Harcourt swamp pipeline. The leak appears to have been caused by explosives. We have isolated the line preparatory to repairs," Shell spokesman in Lagos Tony Okonedo told AFP. "Small quantities of oil have been shut in to allow for necessary repairs."

Shell is the largest oil exporter in Nigeria, accounting for approximately half the 2.1 million barrels a day output.

The company's pipelines have been under attack frequently over the last couple years, with a terrorist group named Movement for the Emancipation of the Niger Delta (MEND) claiming responsibility.

Shell said oil production has been cut back slightly as a result of the attack, as repairs are being made.

Oil surged to a new record high of $117 a barrel on Friday.

Oil News around the Internet

Weekend roundup for oil news

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Oil falls after Iraq restores pipeline flows

Oil fell $2 on Friday after Iraq swiftly restarted a crude pipeline system that had been hit by a bomb attack the day before.

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Research and Markets: Learn About ATP Oil Gas Corporations Upstream Oil And Gas Assets Across The Globe

Research and Markets has announced the addition of "ATP Oil & Gas Corporation Oil and Gas Assets Report" to their offering.

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Oil down on end of week profit taking, restored Iraq oil flows, US eco worries

Oil extended earlier falls as end of week profit taking gained momentum amid a stronger dollar, news of increased oil flows from Nigeria, restored flows in Iraq and renewed worries over the US economic slowdown.

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Chavez against continued oil price rise

Venezuela is not interested in seeing oil prices rise further and is pushing to stabilize the market, President Hugo Chavez said Thursday following a visit to the site of a Brazilian refinery being built to process Venezuelan crude.

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US Oil and Gas Rig Count Up 24 This Week

The number of rigs actively exploring for oil and natural gas in the United States rose by 24 this week to 1,808.

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Sector Roundup: Oil Refiners Climb, Airline Shares Slip on Fuel Prices, Flight Cancellations

Shares of oil refiners rose Friday as oil prices deflated and a Soleil Securities analyst reiterated a "Buy" rating on Frontier Oil Corp. citing of a positive view on its North American assets.

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Meridian Resource to Present At IPAA Oil and Gas Investment Symposium

The Meridian Resource Corporation (NYSE:TMR) announced today that Chairman and CEO Joe Reeves will update investors and analysts on its current operations and future strategy at the IPAA Oil and Gas Investment Symposium in New York City on Monday, April 7, 2008 at 4:10 p.m. Eastern time.

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