Oil Slick Stuff

Do Ya think they want to jack the price of oil UP a Notch? CROOKS!:mad:

OPEC's acting chief sees oil oversupply

The cartel will take measures to balance the market at its Dec. 14 meeting.

December 9 2006: 11:48 AM EST


LAGOS, (Reuters) -- The global oil market is over-supplied by over 500,000 barrels per day (bpd) and OPEC will take appropriate measures to balance it at its Dec. 14 meeting, the cartel's acting secretary-general said on Saturday.
Mohammed Barkindo stopped short of saying OPEC would cut production at the Abuja meeting, though the group's President Edmund Daukoru said on Friday he favored a further reduction after OPEC cut output by 1.2 million bpd in October.
"The over-supply is well over 500,000 bpd. It's between 600,000 and 700,000 bpd for the first half of next year, but those numbers are continually being adjusted," Barkindo told Reuters in a telephone interview.
The cooling global economy
"We are going to study market developments, particularly changes in stocks and non-OPEC supply in the context of a cooling global economy, and come up with appropriate measures to balance the market," he said.
Oil fell to just over $62 a barrel on Friday as ample U.S. stockpiles offset the prospect of a new OPEC cut. Bulging oil inventories in the United States have pushed crude prices from record highs over $78 a barrel in July.
The price has recovered from a 17-month low of $54.86 on Nov. 17, but analysts say the market has not yet fully absorbed OPEC's October cut. There has been some speculation that the group would refrain from further trimming output.
U.S. Energy Secretary Sam Bodman said on Friday OPEC should not reduce output in Abuja but instead should "continue to keep markets well-supplied."
Barkindo said the OPEC secretariat would make its formal recommendation after a technical session on Dec. 13. The ministers will make a final decision at their Dec. 14 meeting.
Angola's application
He said the issue of quotas was not on the agenda of the Abuja meetings.
However, Angola's application to become a full member of the cartel would be considered, he said.
"The Angolans have confirmed that they have decided to join as full members. This is on the agenda at Abuja. What is required is acceptance by all founding members of OPEC and a majority of the other members. I don't see any hitch with that."
Angola is Africa's second biggest producer of oil after Nigeria. Buoyed by the end of a 27-year civil war in 2002 and heavy foreign investment, production has risen by more than 10 percent to 1.4 million bpd since last year. Output is expected to hit 2 million bpd in 2007.
Barkindo said that Sudan and Ecuador were considering joining but had not yet made a formal application to OPEC.
http://money.cnn.com/2006/12/09/news/economy/opecoversupply.reut/index.htm?postversion=2006120911
 
Knowing that Oil prices are a drag on the economy, I consider the price of DIESEL a major contributer to inflation and the state of the economy in the USA. The below chart tracks the prices of diesel fuel back to 2005. In the past DIESEL fuel was cheaper than Gasoline, now it is higher than Gas! I understand that now they actually add OIL to Regular GAS to make DIESEL fuel. DIESEL used to be the first stage of the refinery process and further refining was necessary to produce Gasoline. Seems to me that making DIESEL out of finished refined GASOLINE is probably more expensive than making Gasoline out of DIESEL? What's up with that? The price of DIESEL probably effects the economy more than the price of Gasoline. I'm going to try and post DIESEL prices regularly. The statement above in RED may not be correct? Still doing research.:confused:
On-highway diesel prices, by week and PADD
(Self Service Cash Price in Dollars per Gallon, Including Taxes)

Diesel Prices Web URL: http://tonto.eia.doe.gov/oog/info/wohdp/dslpriwk.txt
US
NATL EAST NEW CENT LOWER GULF ROCKY WEST
DATE AVG COAST ENGLAND ATL ATL MIDWEST COAST MTN COAST CA
 
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Diesel and #2 Heating Oil. FYI
New York Harbor Low Sulfur Diesel vs. New York Harbor Heating Oil Spread Swap Futures (Platts)
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Diesel fuel and No. 2 heating oil are nearly identical products, and the NYMEX Division heating oil futures contract is typically used to hedge diesel. Each product, however, serves different end-use markets, and each moves with a unique set of supply and demand dynamics. Despite the close correlation of diesel and heating oil pricing, basis risk is always present.

To help market participants manage their price risk, the Exchange offers a New York harbor low sulfur diesel vs. New York harbor heating oil spread swap futures contract.

Settlement of the swap futures contract is based on the arithmetic average of the mid-point between the high and low quotations from Platts Oilgram Price Report for New York LS No. 2 fuel barge minus the NYMEX Division New York harbor heating oil futures nearby month settlement price for each business day during the contract month.
http://www.nymex.com/MK_desc.aspx
 
Lots of info on this site about Diesel fuel and price.​


FACTORS BEHIND THE DRAMATIC DIESEL FUEL PRICE INCREASE IN 2005
2005 began with high global oil demand that applied intense pressure on the entire petroleum market system, from oil production to transportation (tankers and pipelines) to refinery capacity. The spot price of West Texas Intermediate (WTI) crude oil averaged about $47 per barrel in January and increased to an average of about $59 per barrel in July. Then hurricanes Katrina and Rita delivered a one-two punch to the oil production and refining infrastructure in the Gulf of Mexico and coastal areas of Texas and Louisiana, causing widespread damage and taking oil production and refining offline for weeks. Katrina initially took out more than 25 percent of U.S. crude oil production and 10-15 percent of U.S. refinery capacity. Major oil pipelines that feed the Midwest and the East Coast were also shut down or forced to operate at reduced rates for a significant period. The impact on prices was dramatic: WTI crude spot prices reached a high of nearly $70 per barrel in early September. Retail on-highway diesel fuel prices experienced similar increases, from a national average of $1.96 per gallon on January 3rd, to $2.59 per gallon on August 29th, to a high of $3.16 on October 24th following hurricane Rita. After hurricanes Katrina and Rita, supplies were bolstered by repairs to damaged facilities, loans and releases from the U.S. Strategic Petroleum Reserve, and by increased imports, in part from emergency releases of inventories in Europe by the International Energy Agency. This contributed to a fall in retail prices and by December 26th, the U.S. average retail diesel fuel price had dropped to about $2.45 per gallon. However, at the end of December 2005, oil production in the Gulf was only at about 75 percent of pre-hurricane levels, and two major refineries were still shut down and another two were working at well below full capacity.
I understand that now they actually add OIL to Regular GAS to make DIESEL fuel. DIESEL used to be the first stage of the refinery process and further refining was necessary to make gasoline.
Still haven't found anything to verify my statement about the process of making diesel fuel, but it just doesn't make country boy sense that something that requires less processing should cost MORE! Guess I have much to learn?:confused:
Think I'll open a bottle of wine! hic!
 
National Unleaded Average 12-10-06

------------------------------------------------------------------------------------------------------Regular ----Mid ----Premium- Diesel
Current Avg. $2.297 $2.438 $2.527 $2.704 *Prices are in US dollars per gallon

http://www.fuelgaugereport.com/index.asp
 
$61.66 a barrel at 06:54 EST.:D I'm sure OPEC will adjust the price up for us later this week!

http://www.nymex.com/lsco_fut_condet.aspx?product=CL&month=Jan&cmonth=F&year=7&currPrev=C

Oil falls below $62

Crude prices extend losses as OPEC gears up for another supply cut.

December 11 2006: 6:11 AM EST


LONDON (Reuters) -- Oil prices eased below $62 Monday, extending last week's losses, as concern over brimming global fuel inventories offset a likely second supply cut by OPEC and news of deepening Saudi export curbs.
Light, sweet crude slipped 13 cents to $61.90 a barrel. London Brent crude traded up 15 cents at $62.35.
The Organization of the Petroleum Exporting Countries (OPEC) meets on Thursday in Nigeria. OPEC agreed to lower output by 1.2 million barrels per day from Nov. 1.
http://money.cnn.com/2006/12/11/markets/oil.reut/index.htm?postversion=2006121106
 
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Oil producers shun dollar

www.ft.com/cms/s/277471c2-8889-11db-b485-0000779e2340.html

"Russia and the members of the Organisation of the Petroleum Exporting Countries, the oil cartel, cut their dollar holdings from 67 per cent in the first quarter to 65 per cent in the second.

Meanwhile, they increased their holdings of euros from 20 to 22 per cent, the BIS said. The speed of the shift may help to explain the weakness of the dollar, which recently fell to a 20-month low against the euro and a 14-year low against sterling."

CB
 
Oil producers shun dollar

www.ft.com/cms/s/277471c2-8889-11db-b485-0000779e2340.html

"Russia and the members of the Organisation of the Petroleum Exporting Countries, the oil cartel, cut their dollar holdings from 67 per cent in the first quarter to 65 per cent in the second.

Meanwhile, they increased their holdings of euros from 20 to 22 per cent, the BIS said. The speed of the shift may help to explain the weakness of the dollar, which recently fell to a 20-month low against the euro and a 14-year low against sterling."

CB
Yes Oil (I think) is a major contributor in the dollar slide! Slick out there!:mad:
 
$61.54 a barrel at 09:14 EST, rising:o
http://www.nymex.com/lsco_fut_condet.aspx?product=CL&month=Jan&cmonth=F&year=7&currPrev=C

12/12/2006 - Updated 7:56 AM ET
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Crude flat ahead of OPEC; warm weather weighs
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By Ciara Linnane, MarketWatch
NEW YORK (MarketWatch) -- Continued uncertainty about the outcome of the Organization of the Petroleum Exporting Countries' meeting this week and forecasts for warmer temperatures across the U.S. combined to keep crude futures flat early Tuesday.
The January contract was last up 14 cents at $61.36 a barrel in electronic trade. On Monday, it closed at its weakest level in two weeks, driven lower by speculation that even if OPEC members vote in favor of a second production cut in as many months, they will be unable to fully implement the decision.

http://markets.usatoday.com/custom/usatoday-com/html-story.asp?markets=COMMODITIES&guid=%7B7F1EE7E7%2D5590%2D449D%2DB8CA%2D22FF13BA5C2B%7D
 
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$60.96 at 07:34 EST.

All Right!:D

Oil falls; OPEC cuts look less likely

Oil-producers' group may choose to enforce existing output cuts rather than announce new ones.

December 13 2006: 6:15 AM EST


LONDON (Reuters) -- Oil prices dipped on Wednesday after suggestions emerged from an OPEC meeting in Nigeria that the oil-producers' group might focus on implementing existing output cuts rather than announcing new ones.
That viewpoint is likely to have been reinforced by the International Energy Agency, the oil consumers' club, which said a cut agreed in November had already affected world stockpiles and which asked OPEC to maintain output.
http://money.cnn.com/2006/12/13/markets/oil.reut/index.htm?postversion=2006121306
 
$61.60 at 10:30 Up:mad: Inventories DOWN 4295K!:o
http://www.nymex.com/lsco_fut_condet.aspx?product=CL&month=Jan&cmonth=F&year=7&currPrev=C

11:00 am : Major averages are now trading in split fashion as further appreciation in oil prices continues to take the wind out of the market's sales. Crude for January delivery is up more than 1.0% at $61.65/bbl after the Energy Dept. reported larger than expected drawdowns in weekly crude and distillate supplies. While the rise in oil now leaves Energy as this morning's best performing sector, higher crude prices have pushed the Transports into negative territory, which is partly responsible for the recent reversal in Industrials. Technology and Health Care also turning negative since the last update now leave sector leadership evenly matched and investors questioning the sustainability of recent market gains. Both sectors were among the top three performers in Q3
http://finance.yahoo.com/marketupdate/overview
 
Crude for January delivery is up more than 1.0% at $61.65/bbl after the Energy Dept. reported larger than expected drawdowns in weekly crude and distillate supplies.
 
Yes Down 4295K, they think this might convense OPEC not to further cut production in tomorrows meeting.:o
 
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