nnuut
Moderator | TSP Legend
Cost of Gasoline in the month of February EIA:Did NOT DROP!
http://tonto.eia.doe.gov/dnav/pet/pet_pri_gnd_dcus_nus_w.htm
http://tonto.eia.doe.gov/dnav/pet/pet_pri_gnd_dcus_nus_w.htm
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Oil Slick Stuff
- Thread starter nnuut
- Start date
Silverbird
Well-known member
Who gets rich off $3 gas - who doesn't
The guy running the service station makes just a few cents, while crude oil producers take the biggest chunk.
By Steve Hargreaves, CNNMoney.com staff writer
Last Updated: March 14, 2008: 4:32 AM EDT
http://money.cnn.com/2008/03/13/news/economy/gas_gallon/index.htm?postversion=2008031404
The guy running the service station makes just a few cents, while crude oil producers take the biggest chunk.
By Steve Hargreaves, CNNMoney.com staff writer
Last Updated: March 14, 2008: 4:32 AM EDT
http://money.cnn.com/2008/03/13/news/economy/gas_gallon/index.htm?postversion=2008031404
nnuut
Moderator | TSP Legend
Gas bills ate your rebateView attachment 3555
Rising pump prices means a big chunk of your check could end up stimulating an economy far from America's.
By Steve Hargreaves, CNNMoney.com staff writer
Last Updated: March 15, 2008: 1:01 PM EDT
NEW YORK (CNNMoney.com) -- OK, so maybe not all your tax rebate, but a big chunk of it.
Rising gasoline prices means that up to a third of your stimulus rebate check - designed to boost the U.S. economy through spending at stores, restaurants and other businesses - could be spent buying gasoline, most of which is imported from abroad.
"The rebate goes into the tank, and then finds its way into economies far from our own," said Jared Bernstein, a senior economist at the Economic Policy Institute, a liberal think tank.
In a move to avoid a recession, the federal government is sending over $100 billion in checks to most taxpayers across the nation. The checks should arrive as early as May.
Middle income individuals with no dependents should get about $600. A middle income family of four will get about $1670, according to the Treasury Department.
Gas prices are projected to jump 40 cents a gallon on average this year according to the U.S. Energy Information Administration. In 2007, the average driver consumed 578 gallons of gas per vehicle, according to the Federal Highway Administration.
So if gasoline consumption holds steady, it could cost $231 more to fuel a car in 2008.
For a middle income single person, that represents over a third of their rebate money.
For the average American family with two cars, that's $462 of additional spending on gas - over a quarter of their rebate.
If EIA's projections are wrong, actual spending on gas could be much higher. The agency low balled its 2007 estimates by 30 cents a gallon.
"Energy prices may eventually swamp most or all of the stimulus package," said Robert Brusca, chief economist at Fact and Opinion Economics, a Manhattan consultancy.
The stimulus package is designed to immediately boost consumer spending - which accounts for over two thirds of the country's economy - until longer term fixes like lower interest rates have time to kick in.
If consumers instead spend the money on imported items such as gas - two thirds of the nation's oil is imported, mostly from Canada, Saudi Arabia and Mexico - then the shot-in-the-arm for the U.S. economy is muted.
"There are various ways to spend your rebate dollars," said Bernstein. 'If you spend them the wrong way, they end up stimulating someone else's economy."
He said things like haircuts, domestic vacations, and going out to eat would be more helpful in warding off a recession than buying imported items - be it gasoline or a pair of jeans.
http://money.cnn.com/2008/03/14/news/economy/gas_rebate/index.htm?postversion=2008031513
Rising pump prices means a big chunk of your check could end up stimulating an economy far from America's.
By Steve Hargreaves, CNNMoney.com staff writer
Last Updated: March 15, 2008: 1:01 PM EDT
NEW YORK (CNNMoney.com) -- OK, so maybe not all your tax rebate, but a big chunk of it.
Rising gasoline prices means that up to a third of your stimulus rebate check - designed to boost the U.S. economy through spending at stores, restaurants and other businesses - could be spent buying gasoline, most of which is imported from abroad.
"The rebate goes into the tank, and then finds its way into economies far from our own," said Jared Bernstein, a senior economist at the Economic Policy Institute, a liberal think tank.
In a move to avoid a recession, the federal government is sending over $100 billion in checks to most taxpayers across the nation. The checks should arrive as early as May.
Middle income individuals with no dependents should get about $600. A middle income family of four will get about $1670, according to the Treasury Department.
Gas prices are projected to jump 40 cents a gallon on average this year according to the U.S. Energy Information Administration. In 2007, the average driver consumed 578 gallons of gas per vehicle, according to the Federal Highway Administration.
So if gasoline consumption holds steady, it could cost $231 more to fuel a car in 2008.
For a middle income single person, that represents over a third of their rebate money.
For the average American family with two cars, that's $462 of additional spending on gas - over a quarter of their rebate.
If EIA's projections are wrong, actual spending on gas could be much higher. The agency low balled its 2007 estimates by 30 cents a gallon.
"Energy prices may eventually swamp most or all of the stimulus package," said Robert Brusca, chief economist at Fact and Opinion Economics, a Manhattan consultancy.
The stimulus package is designed to immediately boost consumer spending - which accounts for over two thirds of the country's economy - until longer term fixes like lower interest rates have time to kick in.
If consumers instead spend the money on imported items such as gas - two thirds of the nation's oil is imported, mostly from Canada, Saudi Arabia and Mexico - then the shot-in-the-arm for the U.S. economy is muted.
"There are various ways to spend your rebate dollars," said Bernstein. 'If you spend them the wrong way, they end up stimulating someone else's economy."
He said things like haircuts, domestic vacations, and going out to eat would be more helpful in warding off a recession than buying imported items - be it gasoline or a pair of jeans.
http://money.cnn.com/2008/03/14/news/economy/gas_rebate/index.htm?postversion=2008031513
nnuut
Moderator | TSP Legend
Oil jumps to record near $112
Investors seek shelter in commodities after the Fed cuts discount rate by 25 basis points.
March 17, 2008: 6:02 AM EDT
SINGAPORE (AP) -- Oil prices jumped to an all-time trading high near $112 a barrel Monday in Asia as the tumbling U.S. dollar and plunging stock markets prompted investors to seek shelter in commodities.
Investors fled the dollar after a surprise move by the Federal Reserve on Sunday to provide cash to financially squeezed Wall Street investment houses pushed the battered greenback deeper into multiyear lows against the yen.
"The Fed's move overall will help the liquidity of the U.S. dollar, and that will really further soften the dollar," said Victor Shum, an energy analyst with Purvin & Gertz in Singapore. "Meanwhile, investors seem to be just following the mantra of buying oil and commodities to hedge against the falling dollar and inflation."
Light, sweet crude for April delivery spiked to a record $111.80 a barrel - up $1.59 from Friday's close - in electronic trading on the New York Mercantile Exchange, midafternoon in Singapore. It later slipped back to $111.61 a barrel.
The contract's previous trading high was set earlier Monday at $111.42 a barrel. On Friday, the contract fell 12 cents to settle at $110.21 a barrel.
Analysts blame the weak dollar for oil's recent rally. Crude futures offer a hedge against a falling dollar, and oil futures bought and sold in dollars are more attractive to foreign investors when the dollar is weak.
Interest rate cuts in the U.S. further weaken the dollar and have helped drive oil's rise. In an extraordinary weekend move, the Fed cut its discount rate on Sunday by 25 basis points to 3.25%. The Fed is also expected to cut the benchmark federal funds rate at its regularly scheduled monetary policy meeting on Tuesday.
"The inverse link between the dollar and oil prices seem to be strengthening. While we have new records for oil almost daily now, we're also seeing daily new record lows for the dollar," Shum said.
The same dynamic has sent gold, another prime destination for investors worried about the falling dollar and rising inflation, to record prices. On Monday, gold rose 3%, or nearly $30, to a record $1,032.35 an ounce.
Shum said the surge in investor demand for commodities as a hedge against inflation has created a self-fulfilling cycle that causes prices to keep rising.
"When there is more liquidity, it will raise inflation. So investors pump more money into oil as a hedge, and that further fuels inflation," he said. "It points to the risk in the oil market that the fundamentals don't really support such continual strengthening in pricing. [more]
http://money.cnn.com/2008/03/17/markets/oil.ap/index.htm?postversion=2008031706
Investors seek shelter in commodities after the Fed cuts discount rate by 25 basis points.
March 17, 2008: 6:02 AM EDT
SINGAPORE (AP) -- Oil prices jumped to an all-time trading high near $112 a barrel Monday in Asia as the tumbling U.S. dollar and plunging stock markets prompted investors to seek shelter in commodities.
Investors fled the dollar after a surprise move by the Federal Reserve on Sunday to provide cash to financially squeezed Wall Street investment houses pushed the battered greenback deeper into multiyear lows against the yen.
"The Fed's move overall will help the liquidity of the U.S. dollar, and that will really further soften the dollar," said Victor Shum, an energy analyst with Purvin & Gertz in Singapore. "Meanwhile, investors seem to be just following the mantra of buying oil and commodities to hedge against the falling dollar and inflation."
Light, sweet crude for April delivery spiked to a record $111.80 a barrel - up $1.59 from Friday's close - in electronic trading on the New York Mercantile Exchange, midafternoon in Singapore. It later slipped back to $111.61 a barrel.
The contract's previous trading high was set earlier Monday at $111.42 a barrel. On Friday, the contract fell 12 cents to settle at $110.21 a barrel.
Analysts blame the weak dollar for oil's recent rally. Crude futures offer a hedge against a falling dollar, and oil futures bought and sold in dollars are more attractive to foreign investors when the dollar is weak.
Interest rate cuts in the U.S. further weaken the dollar and have helped drive oil's rise. In an extraordinary weekend move, the Fed cut its discount rate on Sunday by 25 basis points to 3.25%. The Fed is also expected to cut the benchmark federal funds rate at its regularly scheduled monetary policy meeting on Tuesday.
"The inverse link between the dollar and oil prices seem to be strengthening. While we have new records for oil almost daily now, we're also seeing daily new record lows for the dollar," Shum said.
The same dynamic has sent gold, another prime destination for investors worried about the falling dollar and rising inflation, to record prices. On Monday, gold rose 3%, or nearly $30, to a record $1,032.35 an ounce.
Shum said the surge in investor demand for commodities as a hedge against inflation has created a self-fulfilling cycle that causes prices to keep rising.
"When there is more liquidity, it will raise inflation. So investors pump more money into oil as a hedge, and that further fuels inflation," he said. "It points to the risk in the oil market that the fundamentals don't really support such continual strengthening in pricing. [more]
http://money.cnn.com/2008/03/17/markets/oil.ap/index.htm?postversion=2008031706
nnuut
Moderator | TSP Legend
Crude decline: Oil prices shed $4
Front-month crude contract turns sharply lower after touching a fresh record high in Asia.
Last Updated: March 17, 2008: 10:18 AM EDT
VIENNA, Austria (AP) -- Oil prices jumped to an all-time trading high near $112 a barrel Monday before tumbling, as traders weighed whether to seek further shelter in the crude market amid worsening U.S. economic turmoil. Gasoline and other oil products also plummeted.
Investors fled the dollar after a surprise move by the Federal Reserve on Sunday to provide cash to financially squeezed Wall Street investment houses pushed the battered greenback deeper into multiyear lows against the yen.
"The Fed's move overall will help the liquidity of the U.S. dollar, and that will really further soften the dollar," said Victor Shum, an energy analyst with Purvin & Gertz in Singapore.
"Meanwhile, investors seem to be just following the mantra of buying oil and commodities to hedge against the falling dollar and inflation."
Still, oil prices were moving sharply downward by Monday afternoon, reflecting apparent market jitters about how high a level was supportable in light of dismal U.S. economic developments
Light, sweet crude for April delivery spiked to a record $111.80 a barrel - up $1.59 from Friday's close - in electronic trading on the New York Mercantile Exchange in Asian trading.
But by afternoon in Europe it was down $4.20 at $106.01. On Friday, the contract fell 12 cents to settle at $110.21 a barrel.
"Surely, this is the week crude oil breaks," said the Schork Report, edited by analyst Stephen Schork, alluding to expectations that crude prices were ready for a correction. "After all, the U.S. economy is circling the bowl and the fundamentals have to catch up to the market at some point."
Analysts blame the weak dollar for oil's recent rally. Crude futures offer a hedge against a falling dollar, and oil futures bought and sold in dollars are more attractive to foreign investors when the dollar is weak.
Interest rate cuts in the U.S. further weaken the dollar and have helped drive oil's rise. In an extraordinary weekend move, the Fed cut its discount rate on Sunday by 25 basis points to 3.25%. The Fed is also expected to cut the benchmark federal funds rate at its regularly scheduled monetary policy meeting on Tuesday.
"The inverse link between the dollar and oil prices seem to be strengthening. While we have new records for oil almost daily now, we're also seeing daily new record lows for the dollar," Shum said.
The same dynamic has sent gold, another prime destination for investors worried about the falling dollar and rising inflation, to record prices. On Monday, gold rose 3%, or nearly $30, to a record $1,032.35 an ounce.
Shum also suggested that prices had long ceased reflecting oil's real value.
"When there is more liquidity, it will raise inflation. So investors pump more money into oil as a hedge, and that further fuels inflation," he said. "It points to the risk in the oil market that the fundamentals don't really support such continual strengthening in pricing."
Earlier in the day, equities investors also sought refuge from Asian stocks, which declined sharply Monday after the stunning collapse of Bear Stearns Cos., one of the world's largest investment banks.
JPMorgan Chase & Co. (JPM, Fortune 500) agreed Sunday to buy Bear Stearns (BSC, Fortune 500) for $236.2 million in a deal aimed at averting a Bear Stearns bankruptcy and a spreading crisis of confidence in the global financial system.
But investors chose to see the move as a sign that fallout from problems in the U.S. housing market is far from over.
On Monday, Japan's benchmark Nikkei stock index plunged nearly 4%, while in Hong Kong the Hang Seng fell 5%. Markets in South Korea, Singapore, Australia and New Zealand also fell.
In other Nymex trading, heating oil futures plummeted 10.43 cents to $3.422 a gallon while gasoline futures tumbled over 12 cents to fetch $2.5675 a gallon. Natural gas prices slid nearly 24.7 cents to sell at $9.6217 per 1,000 cubic feet.
In London, Brent crude futures slid $40.1 cents to $102.19 a barrel on the ICE futures exchange.
http://money.cnn.com/2008/03/17/markets/oil.ap/index.htm?postversion=2008031709
Front-month crude contract turns sharply lower after touching a fresh record high in Asia.
Last Updated: March 17, 2008: 10:18 AM EDT
VIENNA, Austria (AP) -- Oil prices jumped to an all-time trading high near $112 a barrel Monday before tumbling, as traders weighed whether to seek further shelter in the crude market amid worsening U.S. economic turmoil. Gasoline and other oil products also plummeted.
Investors fled the dollar after a surprise move by the Federal Reserve on Sunday to provide cash to financially squeezed Wall Street investment houses pushed the battered greenback deeper into multiyear lows against the yen.
"The Fed's move overall will help the liquidity of the U.S. dollar, and that will really further soften the dollar," said Victor Shum, an energy analyst with Purvin & Gertz in Singapore.
"Meanwhile, investors seem to be just following the mantra of buying oil and commodities to hedge against the falling dollar and inflation."
Still, oil prices were moving sharply downward by Monday afternoon, reflecting apparent market jitters about how high a level was supportable in light of dismal U.S. economic developments
Light, sweet crude for April delivery spiked to a record $111.80 a barrel - up $1.59 from Friday's close - in electronic trading on the New York Mercantile Exchange in Asian trading.
But by afternoon in Europe it was down $4.20 at $106.01. On Friday, the contract fell 12 cents to settle at $110.21 a barrel.
"Surely, this is the week crude oil breaks," said the Schork Report, edited by analyst Stephen Schork, alluding to expectations that crude prices were ready for a correction. "After all, the U.S. economy is circling the bowl and the fundamentals have to catch up to the market at some point."
Analysts blame the weak dollar for oil's recent rally. Crude futures offer a hedge against a falling dollar, and oil futures bought and sold in dollars are more attractive to foreign investors when the dollar is weak.
Interest rate cuts in the U.S. further weaken the dollar and have helped drive oil's rise. In an extraordinary weekend move, the Fed cut its discount rate on Sunday by 25 basis points to 3.25%. The Fed is also expected to cut the benchmark federal funds rate at its regularly scheduled monetary policy meeting on Tuesday.
"The inverse link between the dollar and oil prices seem to be strengthening. While we have new records for oil almost daily now, we're also seeing daily new record lows for the dollar," Shum said.
The same dynamic has sent gold, another prime destination for investors worried about the falling dollar and rising inflation, to record prices. On Monday, gold rose 3%, or nearly $30, to a record $1,032.35 an ounce.
Shum also suggested that prices had long ceased reflecting oil's real value.
"When there is more liquidity, it will raise inflation. So investors pump more money into oil as a hedge, and that further fuels inflation," he said. "It points to the risk in the oil market that the fundamentals don't really support such continual strengthening in pricing."
Earlier in the day, equities investors also sought refuge from Asian stocks, which declined sharply Monday after the stunning collapse of Bear Stearns Cos., one of the world's largest investment banks.
JPMorgan Chase & Co. (JPM, Fortune 500) agreed Sunday to buy Bear Stearns (BSC, Fortune 500) for $236.2 million in a deal aimed at averting a Bear Stearns bankruptcy and a spreading crisis of confidence in the global financial system.
But investors chose to see the move as a sign that fallout from problems in the U.S. housing market is far from over.
On Monday, Japan's benchmark Nikkei stock index plunged nearly 4%, while in Hong Kong the Hang Seng fell 5%. Markets in South Korea, Singapore, Australia and New Zealand also fell.
In other Nymex trading, heating oil futures plummeted 10.43 cents to $3.422 a gallon while gasoline futures tumbled over 12 cents to fetch $2.5675 a gallon. Natural gas prices slid nearly 24.7 cents to sell at $9.6217 per 1,000 cubic feet.
In London, Brent crude futures slid $40.1 cents to $102.19 a barrel on the ICE futures exchange.
http://money.cnn.com/2008/03/17/markets/oil.ap/index.htm?postversion=2008031709
nnuut
Moderator | TSP Legend
Oil holds above $106 after drop
International traders fear the sale of Bear Stearns to JPMorgan signals deep economic trouble for the United States.
March 18, 2008: 7:16 AM EDT
JPMorgan (JPM, Fortune 500) on Sunday agreed to bail out Bear Stearns by buying the investment bank in a U.S. Federal Reserve-backed deal worth $236.2 million - or $2 a share - just a fraction of the investment bank's book value last week.[more]
http://money.cnn.com/2008/03/18/markets/oil.ap/index.htm?postversion=2008031807
International traders fear the sale of Bear Stearns to JPMorgan signals deep economic trouble for the United States.
March 18, 2008: 7:16 AM EDT
SINGAPORE (AP) -- Oil prices steadied Tuesday in Asia after falling more than $4 a barrel overnight as investors worried that the sale of Bear Stearns Cos. is a sign of deep economic trouble in the United States.
JPMorgan (JPM, Fortune 500) on Sunday agreed to bail out Bear Stearns by buying the investment bank in a U.S. Federal Reserve-backed deal worth $236.2 million - or $2 a share - just a fraction of the investment bank's book value last week.[more]
http://money.cnn.com/2008/03/18/markets/oil.ap/index.htm?postversion=2008031807
nnuut
Moderator | TSP Legend
AP
Oil Rebounds As Wall Street Rallies
Tuesday March 18, 11:27 am ET
By John Wilen, AP Business Writer Oil Rebounds As Investors Follow Wall Street Higher and Anticipate an Interest Rate Cut
NEW YORK (AP) -- Oil prices rebounded Tuesday as a rally on Wall Street and the prospect of a large interest rate cut drew buyers back to the futures market.
Retail gas prices, meanwhile, slipped slightly for the second day in a row, while diesel prices rose further above $4 a gallon.
Oil advanced as a rally in the stock market gave investors hope that the economy will weather the credit market problems that forced the Federal Reserve-backed sale of Bear Stearns Cos. to JPMorgan Chase & Co. The Dow Jones industrial average was boosted by better than expected earnings from Bear Stearns competitors Lehman Brothers Inc. and Goldman Sachs Group Inc.
Energy investors often view movements in equities markets as a proxy for the economy's health.
Light, sweet crude for April delivery rose $1.92 to $107.60 a barrel on the New York Mercantile Exchange.
On Monday, oil prices plunged by $4.53 a barrel on concerns that Bear's collapse was a sign of deeper economic problems. That drop marked a rare departure for oil traders from the dollar-driven buying that has sent crude to record levels.
Also boosting oil prices Tuesday were expectations that the Fed will aggressively cut the key federal funds rate Tuesday afternoon as it tries to stave off a severe economic crisis. Interest rate cuts tend to weaken the dollar, a trend that creates demand for oil and other commodity futures. Gas prices, meanwhile, slid 0.3 cent to $3.28 a gallon Tuesday, according to AAA and the Oil Price Information Service. Prices are 73 cents higher than a year ago, and the Energy Department expects gas to peak near $3.50 a gallon in the spring as suppliers stock up in advance of peak summer driving season. Some analysts see prices rising even higher, to $3.75 or $4 a gallon.
http://biz.yahoo.com/ap/080318/oil_prices.html
Oil Rebounds As Wall Street Rallies
Tuesday March 18, 11:27 am ET
By John Wilen, AP Business Writer Oil Rebounds As Investors Follow Wall Street Higher and Anticipate an Interest Rate Cut
NEW YORK (AP) -- Oil prices rebounded Tuesday as a rally on Wall Street and the prospect of a large interest rate cut drew buyers back to the futures market.
Retail gas prices, meanwhile, slipped slightly for the second day in a row, while diesel prices rose further above $4 a gallon.
Oil advanced as a rally in the stock market gave investors hope that the economy will weather the credit market problems that forced the Federal Reserve-backed sale of Bear Stearns Cos. to JPMorgan Chase & Co. The Dow Jones industrial average was boosted by better than expected earnings from Bear Stearns competitors Lehman Brothers Inc. and Goldman Sachs Group Inc.
Energy investors often view movements in equities markets as a proxy for the economy's health.
Light, sweet crude for April delivery rose $1.92 to $107.60 a barrel on the New York Mercantile Exchange.
On Monday, oil prices plunged by $4.53 a barrel on concerns that Bear's collapse was a sign of deeper economic problems. That drop marked a rare departure for oil traders from the dollar-driven buying that has sent crude to record levels.
Also boosting oil prices Tuesday were expectations that the Fed will aggressively cut the key federal funds rate Tuesday afternoon as it tries to stave off a severe economic crisis. Interest rate cuts tend to weaken the dollar, a trend that creates demand for oil and other commodity futures. Gas prices, meanwhile, slid 0.3 cent to $3.28 a gallon Tuesday, according to AAA and the Oil Price Information Service. Prices are 73 cents higher than a year ago, and the Energy Department expects gas to peak near $3.50 a gallon in the spring as suppliers stock up in advance of peak summer driving season. Some analysts see prices rising even higher, to $3.75 or $4 a gallon.
http://biz.yahoo.com/ap/080318/oil_prices.html
nnuut
Moderator | TSP Legend
The_Technician
Active member
U know the saying, its "Supply and Demand"....it could mean instead of what the public demand is or what the product supplier demands....in that case its "Supply and Get What You Can!"
nnuut
Moderator | TSP Legend
Well, THEY say it's the falling dollar and the Lemmings exiting stocks, running to the cover of commodities.
YEAH RIGHT!:laugh:
Silverbird
Well-known member
Well, hopefully the enough of the covering has been pulled back and some of the roaches will run!Well, THEY say it's the falling dollar and the Lemmings exiting stocks, running to the cover of commodities.
YEAH RIGHT!:laugh:
nnuut
Moderator | TSP Legend
Oil falls ahead of supplies report
Crude prices decline after Federal Reserve slashes rates; government expected to report a rise in inventories.
Last Updated: March 19, 2008: 8:53 AM EDT
VIENNA, Austria (AP) -- Oil prices dropped almost $2 a barrel Wednesday after jumping higher in the previous session following a cut in a key U.S. interest rate and ahead of a fresh U.S. energy inventory report.
Light, sweet crude for April delivery on the New York Mercantile Exchange dropped $1.81 to $107.61 a barrel in electronic trading by midday in Europe. The contract rose $3.74 to settle at $109.42 a barrel on Tuesday.
On Monday, oil hit a record trading high for a front-month futures contract at $111.80.
The U.S. Federal Reserve board said Tuesday it was lowering its key federal funds rate by three-quarters of a percentage point to 2.25 percent as it tries to stave off a severe economic crisis. Many investors expected a full point cut, but the Fed indicated it was concerned about higher inflation even as it was trying to shore up the economy.
"With [Tuesday's] 75-basis-point reduction in key short-term interest rates, the Fed continues its eight-month trend of loosening credit which will, in turn, continue the downtrend in the value of the dollar," Platts Chief Economist Larry G. Chorn wrote in a research note.
Oil could go to $115 In the past several months, rate cuts have fed oil price rallies as investors have bought crude futures to hedge against inflation and the declining dollar. Also, oil futures are priced in dollars, which makes them cheaper for foreign investors as the dollar falls.
The rate reduction by the Fed "could result in oil prices rising to the $112 to $115 [a barrel] range over the course of the next weeks, assuming the other [Group of 10 industrial nations'] central banks hold their rates constant," Chorn wrote. [more]
http://money.cnn.com/2008/03/19/markets/oil.ap/index.htm?postversion=2008031908
Crude prices decline after Federal Reserve slashes rates; government expected to report a rise in inventories.
Last Updated: March 19, 2008: 8:53 AM EDT
VIENNA, Austria (AP) -- Oil prices dropped almost $2 a barrel Wednesday after jumping higher in the previous session following a cut in a key U.S. interest rate and ahead of a fresh U.S. energy inventory report.
Light, sweet crude for April delivery on the New York Mercantile Exchange dropped $1.81 to $107.61 a barrel in electronic trading by midday in Europe. The contract rose $3.74 to settle at $109.42 a barrel on Tuesday.
On Monday, oil hit a record trading high for a front-month futures contract at $111.80.
The U.S. Federal Reserve board said Tuesday it was lowering its key federal funds rate by three-quarters of a percentage point to 2.25 percent as it tries to stave off a severe economic crisis. Many investors expected a full point cut, but the Fed indicated it was concerned about higher inflation even as it was trying to shore up the economy.
"With [Tuesday's] 75-basis-point reduction in key short-term interest rates, the Fed continues its eight-month trend of loosening credit which will, in turn, continue the downtrend in the value of the dollar," Platts Chief Economist Larry G. Chorn wrote in a research note.
Oil could go to $115 In the past several months, rate cuts have fed oil price rallies as investors have bought crude futures to hedge against inflation and the declining dollar. Also, oil futures are priced in dollars, which makes them cheaper for foreign investors as the dollar falls.
The rate reduction by the Fed "could result in oil prices rising to the $112 to $115 [a barrel] range over the course of the next weeks, assuming the other [Group of 10 industrial nations'] central banks hold their rates constant," Chorn wrote. [more]
http://money.cnn.com/2008/03/19/markets/oil.ap/index.htm?postversion=2008031908
nnuut
Moderator | TSP Legend
Oil Falls More Than $4 on U.S. Supply Increase, Weak Economy
By Mark Shenk
March 19 (Bloomberg) -- Crude oil fell more than $4 a barrel after an Energy Department report showed that U.S. inventories increased as the world's biggest economy slowed.
Supplies rose 133,000 barrels to 311.8 million, the ninth gain in 10 weeks, as imports fell, the report showed. An increase of 2.25 million barrels was forecast, according to a Bloomberg News survey. The Federal Reserve said ``the outlook for economic activity has weakened'' as it cut interest rates yesterday.
``We had a sharp drop in crude imports last week, which explains the smaller-then-expected gain in supplies,'' said Tim Evans, an energy analyst at Citigroup Global Markets Inc. in New York. ``Import numbers have been all over the place and there's no reason to believe this drop is related to any lack of production.'' [more]
http://www.bloomberg.com/apps/news?pid=20602013&sid=a6zntZqlXNM0&refer=commodity_futures
By Mark Shenk
March 19 (Bloomberg) -- Crude oil fell more than $4 a barrel after an Energy Department report showed that U.S. inventories increased as the world's biggest economy slowed.
Supplies rose 133,000 barrels to 311.8 million, the ninth gain in 10 weeks, as imports fell, the report showed. An increase of 2.25 million barrels was forecast, according to a Bloomberg News survey. The Federal Reserve said ``the outlook for economic activity has weakened'' as it cut interest rates yesterday.
``We had a sharp drop in crude imports last week, which explains the smaller-then-expected gain in supplies,'' said Tim Evans, an energy analyst at Citigroup Global Markets Inc. in New York. ``Import numbers have been all over the place and there's no reason to believe this drop is related to any lack of production.'' [more]
http://www.bloomberg.com/apps/news?pid=20602013&sid=a6zntZqlXNM0&refer=commodity_futures
nnuut
Moderator | TSP Legend
Oil takes a big dive on weak gasoline demand
Prices droop despite inventory weakness and stronger dollar.
Last Updated: March 19, 2008: 1:40 PM EDT
NEW YORK (CNNMoney.com) -- Weak demand for petroleum products and a slightly stronger dollar helped keep oil prices sharply lower Wednesday, despite a report showing inventories were weaker than expected last week.
U.S. light crude for April delivery was down $5.62 to $103.80 a barrel on the New York Mercantile Exchange. It had traded down $3.15 to $106.27 just prior to the report's release. Oil hit a record trading high of $111.80 on Monday.
While the weekly Energy Information Administration report normally focuses on supply, traders seemed more concerned with demand in the report issued at 10:30 a.m. ET.
Gasoline demand declines Demand for motor gasoline fell 0.1% last week, to about 9.1 million barrels a day, compared to the same period a year earlier.
[more] http://money.cnn.com/2008/03/19/markets/eia/index.htm?postversion=2008031913
Prices droop despite inventory weakness and stronger dollar.
Last Updated: March 19, 2008: 1:40 PM EDT
NEW YORK (CNNMoney.com) -- Weak demand for petroleum products and a slightly stronger dollar helped keep oil prices sharply lower Wednesday, despite a report showing inventories were weaker than expected last week.
U.S. light crude for April delivery was down $5.62 to $103.80 a barrel on the New York Mercantile Exchange. It had traded down $3.15 to $106.27 just prior to the report's release. Oil hit a record trading high of $111.80 on Monday.
While the weekly Energy Information Administration report normally focuses on supply, traders seemed more concerned with demand in the report issued at 10:30 a.m. ET.
Gasoline demand declines Demand for motor gasoline fell 0.1% last week, to about 9.1 million barrels a day, compared to the same period a year earlier.
[more] http://money.cnn.com/2008/03/19/markets/eia/index.htm?postversion=2008031913
nnuut
Moderator | TSP Legend
Still NOT enough!!:nuts:
Oil drop biggest in 17 years
Prices decline as dollar strengthens and demand weakens. Biggest dollar drop since start of Gulf War in 1991.
By David Goldman and Kenneth Musante, CNNMoney.com staff writers
Last Updated: March 19, 2008: 5:22 PM EDT
NEW YORK (CNNMoney.com) -- Oil prices experienced the sharpest plunge in 17 years on Wednesday, driven down by weakening demand and a stronger dollar.
U.S. light crude for April delivery fell $4.94 a barrel to settle at $104.48 on the New York Mercantile Exchange.
The drop in oil was the largest single-day slide in dollar terms since Jan. 17, 1991, when oil fell by a third, or $10.56, after the United States launched an attack against Iraq to begin the first Gulf War.
In percentage terms, oil fell 4.51% on Wednesday - the biggest drop by that measure since August.
Oil has dropped more than $4.50 in two of the past three days. Crude prices are more than $7 lower than they were when oil hit a record trading high of $111.80 on Monday.[more]
http://money.cnn.com/2008/03/19/markets/eia/index.htm?postversion=2008031917
Oil drop biggest in 17 years
Prices decline as dollar strengthens and demand weakens. Biggest dollar drop since start of Gulf War in 1991.
By David Goldman and Kenneth Musante, CNNMoney.com staff writers
Last Updated: March 19, 2008: 5:22 PM EDT
NEW YORK (CNNMoney.com) -- Oil prices experienced the sharpest plunge in 17 years on Wednesday, driven down by weakening demand and a stronger dollar.
U.S. light crude for April delivery fell $4.94 a barrel to settle at $104.48 on the New York Mercantile Exchange.
The drop in oil was the largest single-day slide in dollar terms since Jan. 17, 1991, when oil fell by a third, or $10.56, after the United States launched an attack against Iraq to begin the first Gulf War.
In percentage terms, oil fell 4.51% on Wednesday - the biggest drop by that measure since August.
Oil has dropped more than $4.50 in two of the past three days. Crude prices are more than $7 lower than they were when oil hit a record trading high of $111.80 on Monday.[more]
http://money.cnn.com/2008/03/19/markets/eia/index.htm?postversion=2008031917
Christopher
Member
The lack of price competitiveness at the pumps is leveraged by profits made on (WAY overpriced) food, beverages, and stuff in general that is sold inside the local gas station's "store." Just say no to the high prices of convenience.
The_Technician
Active member
or how about thisThe lack of price competitiveness at the pumps is leveraged by profits made on (WAY overpriced) food, beverages, and stuff in general that is sold inside the local gas station's "store." Just say no to the high prices of convenience.
DROPPING GAS PRICES
>
>
>
> What do we have to lose? Today, the price of a barrel of oil exceeded
> $107.
> We are most definitely looking at gas prices over $4.00 SOON.
>
> Lets just see if this will work, OK?
>
>
>
>
>
>
> THIS IS NOT THE 'DON'T BUY' GAS FOR ONE DAY, BUT IT WILL SHOW YOU
> HOW WE CAN GET GAS BACK DOWN TO $1.30 PER GALLON.
>
> This was sent by a retired Coca Cola executive. It came
> from one of his engineer buddies who retired from Halliburton. If you
> are tired of the gas prices going up AND they will continue to rise
> this summer, take time to read this please.
>
> Phillip Hollsworth offered this good idea.
> This makes MUCH MORE SENSE than the 'don't buy gas on a
> certain day' campaign that was going around last April or May!
> It's worth your consideration. Join the resistance!!!!
>
>
> I hear we are going to hit close to $ 4.00 a gallon by
> next summer, and it might go higher!! Want gasoline prices to come down?
>
> We need to take some intelligent, united action. The oil
> companies just laughed at that because they knew we wouldn't continue
> to 'hurt' ourselves by refusing to buy gas.
>
> It was more of an inconvenience to us than it was a
> problem for them. BUT, whoever thought of this idea has come up with
> a plan that can really work. Please read on and join with us!
>
>
> By now you're probably thinking gasoline priced at about
> $2.00 is super cheap. Me too! It is currently $3.19 for regular
> unleaded in my town.
>
> Now that the oil companies and the OPEC nations have
> conditioned us to think that the cost of a gallon of gas is CHEAP at
> $1.50 - $1.75, we need to take aggressive action to teach them that
> BUYERS control the marketplace. not sellers.
>
> With the price of gasoline going up more each day, we
> consumers need to take action.
>
> The only way we are going to see the price of gas come
> down is if we hit someone in the pocketbook by not purchasing their gas!
> And, we can do that WITHOUT hurting ourselves.
>
> How? Since we all rely on our cars, we can't just stop
> buying gas.
>
> But we CAN have an impact on gas prices if we all act
> together to force a price war.
>
> Here's the idea: For the rest of this year, DON'T purchase
> ANY gasoline from the two biggest companies (which now are one), EXXON
> and MOBIL.
>
> If they are not selling any gas, they will be inclined to
> reduce their prices.
> If they reduce their prices, the other companies will have
> to follow suit.
>
> But to have an impact, we need to reach literally millions
> of Exxon and Mobil gas buyers. It's really simple to do! Now, don't
> wimp out on me at this point...keep reading and I'll explain how
> simple it is to reach millions of people!!
>
> I am sending this note to 30 people. If each of us send
> it to at least ten more (30 x 10 =3D 300) ... and those 300 send it
> to at least ten more (300 x10 =3D 3,000)...and so on, by the time the
> message reaches the sixth group of people, we will have reached over
> THREE MILLION consumers.
> If those three million get excited and pass this on to ten
> friends each, then 30 million people will have been contacted!
>
> If it goes one level further, you guessed it..... THREE
> HUNDRED MILLION PEOPLE!!!=20
>
> Again, all you have to do is send this to 10 people.
> That's all!
> (If you don't understand how we can reach 300 million and
> all you have to do is send this to 10 people.... Well, let's face it,
> you just aren't a mathematician. But I am . so trust me on this one.
>
> How long would all that take? If each of us sends this
> e-mail out to ten more people within one day of receipt, all 300
> MILLION people could conceivably be contacted within the next 8 days
> !!!
>
> I'll bet you didn't think you and I had that much
> potential, did you!
>
> Acting together we can make a difference.
>
> If this makes sense to you, please pass this message on.
> I suggest that we not buy from EXXON/MOBIL UNTIL THEY LOWER THEIR
> PRICES TO THE $2.00 RANGE AND KEEP THEM DOWN. THIS CAN REALLY WORK.
>
> Keep it going!!!
>
Asylum
Member
nnuut
Moderator | TSP Legend
Close at $101.84
AP
Oil Falls on Economy Worries
Thursday March 20, 3:32 pm ET
By John Wilen, AP Business Writer Oil Prices Drop on Concerns the Slowing Economy Is Cutting Demand
NEW YORK (AP) -- Oil futures extended their declines Thursday as concerns about the economy and demand for oil grew and the dollar strengthened.
Retail gas prices, meanwhile, fell further below their recent records, while diesel rose to a new record above $4 a gallon.
For a second day, the oil market appeared focused on the economy and oil's underlying supply and demand fundamentals -- factors it ignored in recent weeks while rocketing to a series of new records. However, some analysts said oil's price swoon may not last for long; most investors expect the Federal Reserve to cut interest rates several more times this year, moves that are sure to put new pressure on the dollar. Lower interest rates tend to weaken the dollar, driving investors to commodities such as oil that they view as a hedge against inflation. A lower dollar also makes oil less expensive to overseas investors -- a trend that reverses when the dollar strengthens, as it did Thursday.[more]
http://biz.yahoo.com/ap/080320/oil_prices.html
AP
Oil Falls on Economy Worries
Thursday March 20, 3:32 pm ET
By John Wilen, AP Business Writer Oil Prices Drop on Concerns the Slowing Economy Is Cutting Demand
NEW YORK (AP) -- Oil futures extended their declines Thursday as concerns about the economy and demand for oil grew and the dollar strengthened.
Retail gas prices, meanwhile, fell further below their recent records, while diesel rose to a new record above $4 a gallon.
For a second day, the oil market appeared focused on the economy and oil's underlying supply and demand fundamentals -- factors it ignored in recent weeks while rocketing to a series of new records. However, some analysts said oil's price swoon may not last for long; most investors expect the Federal Reserve to cut interest rates several more times this year, moves that are sure to put new pressure on the dollar. Lower interest rates tend to weaken the dollar, driving investors to commodities such as oil that they view as a hedge against inflation. A lower dollar also makes oil less expensive to overseas investors -- a trend that reverses when the dollar strengthens, as it did Thursday.[more]
http://biz.yahoo.com/ap/080320/oil_prices.html