Oil Prices Drop on Senate Vote to Hold Some Out of Reserve

[radfringe]

Oil Prices Drop on Senate Vote to Hold Some Out of Reserve
http://www.nytimes.com/2004/03/13/business/13oil.html?ex=1079758800&en=621ba7795794b8e6&ei=5062&partner=GOOGLE
By BLOOMBERG NEWS -- Published: March 13, 2004


The price of crude oil futures fell yesterday after the Senate voted to sell oil intended for the nation's Strategic Petroleum Reserve, increasing supplies to refiners.

The vote was on a nonbinding amendment to a fiscal policy blueprint for 2005, directing the Energy Department to sell 53 million barrels of crude oil rather than deliver it to the reserve. Deliveries, however, still cannot be canceled unless Congress later passes a separate bill and President Bush signs it.

In New York, crude oil for April delivery dropped 59 cents, or 1.6 percent, to $36.19 a barrel. New York futures have risen 11 percent this year on concerns about supply but declined about 3 percent during the week.

---snip---

The Senate action challenges President Bush's plan to fill the reserve to its capacity of 700 million barrels by sometime next year. The reserve now holds a record 648.2 million barrels, according to the Energy Department.

[Dogmudgeon]

1. Big 1.6% drop

Or, as they say in the oil industry, "a drop in the bucket".

--bkl

[MarianJack]

2. GOLLY!

When Bill Clinton did this in'00, it was a "cynical political ploy!".

It's amazing what the difference between a D after your name or an r makes. I know, don't remind me, but ALL of our problems aren't bush's fault. It's that damn penis of Bill Clinton's!

[booksenkatz]

3. Is that why our local gas prices dropped a "whopping"

2-3 cents/gallon the last few days here in Detroit-Ann Arbor? I can't effing believe that I WAITED IN LINE for gas @ $1.63 last Monday. Just like the 1970s, lines all the way out to the road, because $1.63 was a GOOD DEAL on gas that day. And it's only going to get worse, since no one is leading the way and investing in new types of energy research. We're just gonna suck the earth dry and then when there's no more oil/gas, we can just shut out the lights in Motor City and live like cavemen because no one had the foresight to do anything else.

[stewert]

5. Gas Prices Dropped in Peoria !

In Peoria Illinois gas prices dropped 9 cents a gallon almost overnight.

It was $1.74 a gallon a few days ago, now it is $1.65 a gallon, that's
still way too high, but a 9 cent drop is a pretty good start.

[54anickel]

4. Did the Senate somehow get fooled by the oil companies?

Yesterday or the day before there were several articles about different oil companies reserves being lower than they were reporting.

Now they get to make up their shortages by buying from the SPR, at lower prices than on the current market. This has forced OPEC to rethink their product cuts and pricing.

http://www.reuters.com/newsArticle.jhtml?type=businessNews&storyID=4560592§ion=news

Something stinks, or maybe I have just become too cynical.

[Barkley]

6. Good News!

It looks like the Senate pre-empted Bush on this one.

They don't want to face voters in Nov. elections
high/ rising gas and energy prices with having done nothing.

Prices fell about 7 cents in Pasadena, CA.
Regular unleaded (Chevron) is around $2.21 per gallon.