Thread: Oil Slick Stuff

Oil falls $2 after Fed announcement

Futures sink after the central bank cuts interest rates; inventory report pressured prices in early trade.

By Catherine Clifford, CNNMoney.com staff writer
Last Updated: April 30, 2008: 3:35 PM EDT

NEW YORK (CNNMoney.com) -- Oil fell sharply Wednesday after the Federal Reserve said it would lower interest rates by 1/4 of a percentage point. Earlier in the day, oil prices eased following a report that showed supplies of crude increased more than expected last week.
U.S. light crude for June delivery fell $2.17 cents to settle at $113.46 a barrel on the New York Mercantile Exchange. Just before the central bank's announcement, oil was 93 cents lower at $114.70 a barrel.
Prices have fallen $5.29 a barrel since Monday when crude settled at $118.75 a barrel. [more]
http://money.cnn.com/2008/04/30/mark...ion=2008043014

http://money.cnn.com/pf/features/lis...ces/price.html

Sure is MP, they think we have it bad!
U.S. gas: So cheap it hurts

Relatively low taxes have kept pump prices far below most other developed nations, which some say is precisely why the current runup is so painful.

By Steve Hargreaves, CNNMoney.com staff writer
Last Updated: May 1, 2008: 7:07 AM EDT
[See Charts]
NEW YORK (CNNMoney.com) -- Despite daily headlines bemoaning record gas prices, the U.S. is actually one of the cheaper places to fill up in the world.
Out of 155 countries surveyed, U.S. gas prices were the 45th cheapest, according to a recent study from AIRINC, a research firm that tracks cost of living data.
The difference is staggering. As of late March, U.S. gas prices averaged $3.45 a gallon. That compares to over $8 a gallon across much of Europe, $12.03 in Aruba and $18.42 in Sierra Leone.
The U.S. has always fought to keep gas prices low, and the current debate among presidential candidates on how to keep them that way has been fierce.
But those cheap gas prices - which Americans have gotten used to - mean they feel price spikes like the ones we're experiencing now more acutely than citizens from other nations which have had historically more expensive fuel.
Cheap gas prices have also lulled Americans into a cycle of buying bigger cars and bigger houses further away from their work - leaving them more exposed to rising prices, some experts say.
Price comparisons are not all created equal. Comparing gas prices across nations is always difficult. For starters, the AIRIC numbers don't take into account different salaries in different countries, or the different exchange rates. Obviously, buying $8 worth of gas with a euro - currently valued at about $1.55 to the dollar - is much easier on the wallet than paying with dollars.
And then there's the varying distances people drive, the public transportation options available, and the different services people get in exchange for high gas prices. For example, Europe's stronger social safety net, including cheaper health care and higher education, is paid for partly through gas taxes.
Gasoline costs roughly the same to make no matter where in the world it's produced, according to John Felmy, chief economist for the American Petroleum Institute. The difference in retail costs, he said, is that some governments subsidize gas while others tax it heavily.[more]
http://money.cnn.com/2008/05/01/news...ion=2008050107

GOOD MOVE there Burntankle!!

Oil rises on weaker dollar

U.S. dollar softens after Federal Reserve cuts key rate by a quarter-percentage point to 2%. Retail gas at 17th straight record.

May 1, 2008: 6:12 AM EDT






SINGAPORE (AP) -- Oil prices rose in Asian trading Thursday as the dollar weakened after the U.S. central bank cut its key interest rate.
The U.S. Federal Reserve said Wednesday it would cut the federal funds rate by a quarter percentage point to 2%. Early in Asia, the dollar lost ground against both the euro and yen, although it began to stabilize and strengthen later in the day.
"The U.S. (Federal Open Market Committee) meeting and the softer U.S. dollar helped the oil price recover some ground," said David Moore, commodity strategist with the Commonwealth Bank of Australia in Sydney.
U.S. crude for June delivery added 79 cents to $114.25 a barrel in electronic trading on the New York Mercantile Exchange by midafternoon Thursday in Singapore.
Interest rate cuts tend to weaken the dollar, and investors buy commodities such as oil as a hedge against inflation when the greenback falls. A weaker dollar also makes oil cheaper for overseas buyers.
The wording of the statement accompanying the Fed's announcement, though, left traders wondering whether future cuts are likely. While signaling it is concerned about weak economic growth, the central bank also cited worries about inflation - a risk propelled in large part by higher energy prices.
Gas prices. Retail gas prices increased for the 17th day in a row. AAA reported the national average price for a gallon of regular unleaded gasoline rose to a new record high of $3.623, up six-tenths of a cent from the previous day.
Supply jump[more]

Crude taking a dive on a stronger dollar (today).
10:42................$111.42............-2.36

Last trade73.257Change+0.669 (+0.92%)
http://quotes.ino.com/chart/?s=NYBOT_DX&v=i

Oil down $3 as the dollar climbs

The day after the Federal Reserve cuts key rate by a quarter-percentage point to 2%, oil prices ease. Retail gas at 17th straight record.

Last Updated: May 1, 2008: 11:27 AM EDT

NEW YORK (AP) -- Oil prices Thursday were $3 below Wednesday's settle price as the dollar strengthened against the euro despite a cut by the U.S. central bank in its key interest rate.
Light, sweet crude for June delivery fell as low as $110.46 a barrel in electronic trading on the New York Mercantile Exchange, after trading as high as $113.10 earlier in the day. Crude was trading at $110.90 a barrel at 11:30 a.m. on Thursday.
On Wednesday the contract fell $2.17 to settle at $113.46 a barrel after the U.S. government reported that crude inventories rose more than expected last week.
In London, Brent crude futures were down 29 cents to $111.07 a barrel on the ICE Futures exchange.[more]
http://money.cnn.com/2008/05/01/mark...ion=2008050111

Oil rebounds above $113 a barrel

Crude prices turn higher in electronic trading. Gas prices end 17-day record run.

Last Updated: May 2, 2008: 7:32 AM EDT




SINGAPORE (AP) -- Oil prices bounced back above $113 a barrel in volatile trading Friday after falling sharply from the early-week record near $120 a barrel.
Light, sweet crude for June delivery on the New York Mercantile Exchange rose 54 cents to $113.06 a barrel in electronic trading by midday in Europe, up from a low of $111.78 earlier in the session. The contract fell 94 cents to settle at $112.52 a barrel on Thursday.
A stronger U.S. dollar and short covering by professional traders who bought back contracts as prices recovered after betting earlier that prices would fall further were both seen affecting the market.
As the dollar has recovered this week against the euro and yen, the front-month crude futures contract on the New York Mercantile Exchange has dropped nearly $8 from its high to benchmark oil's lowest level since April 14.
On Friday, the dollar rose against the 15-nation euro, which bought $1.5458 by midday in Europe, down from $1.5461 late Thursday in New York.
The rise of the dollar has stripped away some of oil's appeal to investors who have been betting that the greenback would continue to falter. When the dollar gains ground, commodities such as oil lose their value as a hedge against inflation, prompting selling. Also, a stronger dollar makes oil more expensive to investors overseas.[more]
http://money.cnn.com/2008/05/02/mark...l.ap/index.htm

Oil prices rise on supply worries

Crude rises after an attack on a Nigerian oil installation, but gains capped by stronger dollar.

Last Updated: May 5, 2008: 6:53 AM EDT



SINGAPORE (AP) -- Oil prices rose Monday, supported by weekend news of an attack on a Nigerian oil installation, but gains were limited by the strengthening of the U.S. dollar.
Royal Dutch Shell PLC (RDS.A) spokesman Precious Okolobo said Saturday that attackers hit a flow station belonging to Shell's joint venture in southern Nigeria and that some oil production had been shut down. He gave no further details. Flow stations are intersections for pipelines carrying oil from wells to export terminals.
"The geopolitical news (out of Nigeria) is supportive of oil pricing and causes investors to come back into oil," said Victor Shum, an analyst with Purvin & Gertz in Singapore. However, "the strengthening dollar has capped further gains in oil," he said.
U.S. crude for June delivery rose 93 cents to $117.25 a barrel in Asian electronic trading on the New York Mercantile Exchange by midafternoon in Singapore. The contract rose $3.80 to settle at $116.32 a barrel on Friday.
Crude futures soared Friday after Turkish airstrikes on Kurdish rebel bases in Iraq injected some supply concerns into the market.
Also supporting oil prices were concerns about Iran after Supreme Leader Ayatollah Ali Khamenei said Sunday that his country will not bend to international pressure and give up its nuclear program. Iran is the second largest producer in the Organization of Petroleum Exporting Countries.
When conflict breaks out or political tensions rise in the Middle East, investors often buy oil on concerns that supplies will be disrupted.
"The market is supported by strong commodity index fund buying that happened on Friday, driven primarily by a belief that there would be supply issues in the long term," Shum said.
An employment report from the U.S. Labor Department also gave investors reason to be optimistic about the U.S. economy. The U.S. is the world's largest consumer of oil and any drop in demand there can have a global impact on prices.
Oil prices dropped to nearly $110 a barrel on Thursday, helped by the rising U.S. dollar, which now stands above 105 against the yen and near 1.55 against the euro. Both levels are significantly above record lows the dollar hit last month and in March against the currencies.
A rising dollar undercuts the appeal of commodities such as oil as a hedge against inflation, and makes oil more expensive to investors overseas.
In other Nymex trading, heating oil futures added 1.24 cents to $3.2311 a gallon while gasoline prices fell 0.64 cent to $2.96 a gallon. Natural gas futures rose 7.3 cents to $10.85 per 1,000 cubic feet.
http://money.cnn.com/2008/05/05/mark...ion=2008050506

Gas price break may not last

After 2-week advance, daily average is down for 4th straight day. But another run at the record looms - surveys.

Last Updated: May 5, 2008: 7:10 AM EDT

ATLANTA (CNN) -- After a two-week climb in gasoline prices, there appeared to be some short-term moderation Monday - but another run at the record high set last week seems likely, two surveys indicated.
The average price of gasoline jumped 15 cents over the past two weeks to a national average of $3.62 per gallon of self-serve regular, according to the biweekly Lundberg Survey released Sunday. The rise continued at virtually the same rate as the previous two weeks, when the average price went up 16 cents per gallon.
Separately, AAA reported Monday that the national average price for a gallon of regular unleaded gasoline fell for the fourth straight day, down 3/10 of a cent to $3.611. The price is 1.2 cents below the $3.623-a-gallon record set last Thursday, which marked the 17th day in a row of new highs.
The AAA survey is updated daily, and tracks prices at roughly 80,000 service stations across the country. It is conducted for the group by Oil Price Information Service.[more]
http://money.cnn.com/2008/05/05/news...ices/index.htm

LMAO! Fox in the henhouse!

Each of the three presidential candidates has called for greater federal intervention in response to the financial and housing turmoil. President Bush defended his policies at a news conference Tuesday. Privately, officials have huddled with industry executives to discuss what should be done.

FTC takes aim at oil price manipulation
WASHINGTON (AP) — The Federal Trade Commission said Thursday it hoped to complete rules by the end of the year on how it plans to enforce a new law against price manipulation and deception in the oil-trading markets.
The FTC announced that has taken the first step, seeking public comments, toward developing a regulation on oil industry price manipulation.
As part of a broad energy bill passed in December, Congress gave the FTC expanded authority to pursue price manipulation in the oil markets and made it illegal for anyone to provide false information to federal agencies about oil prices.
"We understand that consumers are being hurt by high gas prices and the commission remains vigilant in using its full authority to prevent unlawful behavior that affects gas prices," FTC Chairman William Kovacic said in a statement.
He said the request for public comment will help the agency "assess quickly and thoughtfully how the commission's new market manipulation authority may be used to protect the American people."
Among the questions that the FTC hopes to get a clearer sense of is the definition of market manipulation and what should be considered "false and misleading" information in its enforcement of the new law.
The law makes it illegal to use deception or manipulation in the purchase or sale of crude oil, gasoline or petroleum distillates. Violators could face a civil penalty of up to $1 million.
The FTC will propose new regulations after the 30-day comment period, with an intention to conclude the rule-making by the end of the year.
The announcement was welcomed on Capitol Hill.
"We've been waiting for the FTC to act," said Sen. Maria Cantwell, D-Wash., who has recently written the FTC to ask why the rule-making was being delayed.
House Speaker Nancy Pelosi, D-Calif., praised the FTC's "long overdue action of moving forward on efforts to examine the manipulation of energy prices." She also had written the FTC asking why the rule-making hadn't begun.
Copyright 2008 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Originally Posted by luv2read

LMAO! Fox in the henhouse!

Its about time they caught up with those RATS!!Attachment 3838
Why the end of the year? I want it retroactive!