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.
Showing posts with label Politics Oil. Show all posts
Showing posts with label Politics Oil. Show all posts
Friday, October 3, 2008
Thursday, September 25, 2008
Oil Prices Fluctuate on Demand and Economic Concerns
Uncertainty is the word floating around concerning oil prices, as investors await the decision concerning the government bailout plan, the decreasing demand for oil, and the time it will take to bring platforms and rigs back to production from recent storms.
Other factors in the mix are the cut in production announced by OPEC earlier in September, as well as the continued threat to Nigerian oil procution by regional terrorists.
The potentially serious consequences on the value of the dollar from the ill-advised financial bailout is also on the minds of oil investors going forward.
Fear and uncertainty keep oil and other commodities in an unpredictable mode. We'll see continued fluctuation in prices going forward until things settle down. Early morning trading on the NYMEX had November deliver for sweet crude dropping to $105.57, although they continue to move up and down from positive to negative territory.
Other factors in the mix are the cut in production announced by OPEC earlier in September, as well as the continued threat to Nigerian oil procution by regional terrorists.
The potentially serious consequences on the value of the dollar from the ill-advised financial bailout is also on the minds of oil investors going forward.
Fear and uncertainty keep oil and other commodities in an unpredictable mode. We'll see continued fluctuation in prices going forward until things settle down. Early morning trading on the NYMEX had November deliver for sweet crude dropping to $105.57, although they continue to move up and down from positive to negative territory.
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.
=====
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.
=====
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.
=====
Thursday, April 3, 2008
Politicians - Especially Democrats - Fail to Understand Oil and Oil Business
The media circus, where Congress brought Oil executives of big companies before them in a show of ignorance about business and the oil industry was pathetic.
All it has done is revealed their ignorance, and underscore why politicians are so bad at allocating financial resources.
Even though the oil industry has been unfairly singled out, as all American manufacturers get tax breaks, the idea that they need to spend more money on so-called "renewable" energy is ridiculous. That's politician speak for "if you don't know what to do, throw more money at it." The record of politicians wasting taxpayers dollars is legendary.
Jeff Eshelman, vice president of public affairs for the Independent Petroleum Association of America said, if Congress really wanted to decrease prices, they'd change the outrageous policies of restricting oil companies from drilling on U.S. land owned by the government. And he's right!
"If oil companies are given the ability to go into federal lands and produce crude oil, that would increase supply," Eshelman told UPI. "The more supply we have on the market, the more stable prices will be."
That's the first step in taking care of oil prices today, and the near future.
When you consider government interference in their feeble and dangerous attempt to promote the destructive ethanol additive, they need to take care of things like protecting U.S. citizens, and leave the oil market to business.
Democrats are especially ignorant in not knowing how to handle these things. Congress overall is attempting to find scapegoat to deflect the publics dissatisfaction with their performance, which is at all-time lows.
All it has done is revealed their ignorance, and underscore why politicians are so bad at allocating financial resources.
Even though the oil industry has been unfairly singled out, as all American manufacturers get tax breaks, the idea that they need to spend more money on so-called "renewable" energy is ridiculous. That's politician speak for "if you don't know what to do, throw more money at it." The record of politicians wasting taxpayers dollars is legendary.
Jeff Eshelman, vice president of public affairs for the Independent Petroleum Association of America said, if Congress really wanted to decrease prices, they'd change the outrageous policies of restricting oil companies from drilling on U.S. land owned by the government. And he's right!
"If oil companies are given the ability to go into federal lands and produce crude oil, that would increase supply," Eshelman told UPI. "The more supply we have on the market, the more stable prices will be."
That's the first step in taking care of oil prices today, and the near future.
When you consider government interference in their feeble and dangerous attempt to promote the destructive ethanol additive, they need to take care of things like protecting U.S. citizens, and leave the oil market to business.
Democrats are especially ignorant in not knowing how to handle these things. Congress overall is attempting to find scapegoat to deflect the publics dissatisfaction with their performance, which is at all-time lows.
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