Falling Gas and Crude Stockpiles Could Drive Prices Higher

[cynatnite]

April 19, 2006 — In its weekly report on U.S. supplies of oil and gasoline, the Energy Department said that stockpiles of gasoline and crude oil had fallen during the last seven days — bad news for those hoping for relief from high prices at the pump.

Commercial crude inventories — the total available to the market outside the Strategic Petroleum Reserve — fell by 0.8 million barrels. Gasoline stocks fell by 5.4 million barrels — more than double the expected amount.

This is the seventh straight week of gas drawdowns, leaving the United States with gasoline supplies on the lower end of the average range for this time of year. During that time the country has seen 11.5 percent of its gasoline stockpile — 23.4 million barrels — disappear.

http://abcnews.go.com/Business/story?id=1860542&CMP=OTC-RSSFeeds0312

I decided this need it's own thread.

[phantom power]

1. interesting. you should post in E/E

[bigtree]

2. this article didn't even mention the pressures from Bush's militarism

in Iraq and against Iran, which most observers agree is keeping the price artificially high, and skirted the recent assertions by OPEC:

OPEC says today that world demand is easing:

OPEC forecasts weakening demand

http://www.suburbanchicagonews.com/newssun/business/5_3_WA19_OILPRICES_S1.htm

WASHINGTON — Oil prices settled at a new high above $71 a barrel Tuesday as supply threats around the world overshadowed a new report from OPEC forecasting weakening global demand.

There was no fresh catalyst for Tuesday's buying, but analysts said the market psychology would likely remain bullish until there is some resolution to a variety of geopolitical uncertainties, particularly the West's nuclear dispute with Iran and output disruptions in Nigeria.

Global Insight oil analyst Kevin Lindemer said the slowing consumption growth and swelling inventories of crude oil in the United States would typically help pull down prices, but "all of that is getting swamped right now by Iran and Nigeria."



yesterday:


OPEC delegate says oil price rise "not justified by market fundamentals"

DUBAI (Reuters) - OPEC believes oil prices are too steep, after setting a fresh record high above $70 a barrel, and the rise is not justified by market fundamentals, a senior OPEC delegate said on Tuesday.

The delegate said there was no shortage of crude oil supply and that OPEC giant Saudi Arabia and other producers had pledged in the past to keep markets well supplied.

"OPEC believes strongly that prices are too high and nobody wants to see these prices," the delegate told Reuters. "(But) it has nothing to do with fundamentals."

"Geopolitics are riding the price," the OPEC delegate said, stressing that there was no shortage of crude in the market.

Saudi Arabia has the lion's share of OPEC's spare capacity. Riyadh has repeatedly said there is not enough demand from refiners for the medium and heavy crudes that constitute the bulk of its unused output capacity.

http://today.reuters.com/business/newsarticle.aspx?type=ousiv&storyID=2006-04-18T091354Z_01_L18203482_RTRIDST_0_BUSINESSPRO-ENERGY-OPEC-DELEGATE-DC.XML



my 2 cents:

Sticking It To Us at the Gas Pump Because of the Iran 'Crisis'

http://www.opednews.com/articles/opedne_ron_full_060414_sticking_it_to_us_at.htm

[Greyhound]

3. $4 this summer, $5 by years end.

I've already seen a fast food ad saying, in essence, I have to put all my $ in the gas tank, so I have to eat this crap. I think it's Arby's.

[2Design]

4. bs - all bs - this is BFEE making profits - that is all - and the stupid

media is spreading this crap