Can we make an argument for supply and demand, or just plain ol gouging? Our friends at the NYMEX are at it again…it’s vacation driving season. There’s your demand. Here’s a story from Bloomberg, and please note the increase in gas supplies. It seems someone didn’t slide all the marbles to the left on the calculator again.
Crude Oil Rises as U.S. Supply Declines, Fuel Demand Increases
By Mark ShenkJune 17 (Bloomberg) — Crude oil rose for the first time in four days after a government report showed a bigger-than- forecast inventory decline and an increase in fuel demand.
Crude oil stockpiles fell 3.87 million barrels to 357.7 million, the Energy Department said today. The drop was more than twice the size forecast by analysts surveyed by Bloomberg News. Fuel consumption climbed 1.3 percent to 19 million barrels a day last week, the highest since March. Refineries increased operating rates and gasoline output, the report showed.
“There have been several multimillion-barrel inventory declines recently,” said Rick Mueller, a director of oil markets at Energy Security Analysis Inc. in Wakefield, Massachusetts. “Imports have been in the 8-to-9 million-barrel- a-day area, which is just not enough to maintain stockpiles during this period of high refinery runs.”
Crude oil for July delivery rose 56 cents, or 0.8 percent, to settle at $71.03 a barrel at 2:43 p.m. on the New York Mercantile Exchange. Futures earlier touched $69, the lowest since June 9. Prices are up 59 percent this year.
Oil dropped earlier today after the Energy Department report showed that fuel stockpiles increased. Gasoline inventories climbed 3.39 million barrels to 205 million last week, the biggest gain since January. Supplies of distillate fuel, a category that includes heating oil and diesel, rose 308,000 barrels to 150 million.
“The initial move lower was fueled by the gasoline supply increase,” said Gene McGillian, an analyst and broker at Tradition Energy in Stamford, Connecticut. “Overall the report was mixed. The crude-oil drop was greater than people expected and gasoline demand was up a bit.”
Steve Hilton
babybttrfly
Mike
That’s funny Steve….I just heard this week that inventories are up and demand is down. But the prices are going up?
Comment by Mike — June 21, 2009 @ 8:57 AM
Yep, another attempt to milk out a dollar from you and me in an obviously acceptable greed scheme. Why would O’s government be so concerned that the middle class is being stepped on with ridiculous ideas of salvation, when the very cause of the economic downfall lies at the hands of the speculators? What is the reason for the rise in prices? OPEC’s statement that they wouldn’t increase production until oil reached $100. Well, by gosh, we’ll take care of them, but let everyone in this gluttonous country who has to travel eat cake at the expense of the middle east who is paving it’s streets in gold. Hope everyone can see where the real values in this administration, and the previous 3 have been. NWO..what is it?
Comment by Steve Hilton — June 21, 2009 @ 4:38 PM
Report: US natural gas reserves surge 35 percent
Comment by Mike — June 22, 2009 @ 1:05 PM