Crude Oil Trades Below $54 For The First Time in almost 20 Months

[Bronco_Beerslug]

Some trades just went off below $54 for the first time since late Spring 2005.

Based on nothing really that I can find except for the projections of continued warm weather in the North East.

-----------------------------------------------------------------------------------
Oil Sinks Below $54 a Barrel, Lowest Since June 2005 (http://www.cnbc.com/id/16531472)
Topics:Energy (http://www.cnbc.com/id/15837548/cid/97276)
Sectors:Oil & Gas (http://www.cnbc.com/id/15837548/cid/97123)
By Associated Press | 09 Jan 2007 | 08:25 AM

U.S. Oil prices dropped briefly below $54 a barrel Tuesday in a market expecting more mild weather and rising inventories in the United States. Prices for both ICE Brent and U.S. light sweet crude fell to their lowest levels since June 2005.
http://www.cnbc.com/images/cnbc/componentbacks/mqb_name.jpg
http://www.cnbc.com/images/cnbc/componentbacks/mqb_sym.jpg
http://www.cnbc.com/images/cnbc/componentbacks/mqb_last.jpg
http://www.cnbc.com/images/cnbc/componentbacks/mqb_plain.jpg
http://www.cnbc.com/images/cnbc/componentbacks/mqb_chg.jpg
http://www.cnbc.com/images/cnbc/componentbacks/mqb_perchg.jpg

NYMEX CRUDE O...
US@CL.1
54.15
http://www.cnbc.com/images/cnbc/componentbacks/watchlist_down.gif
-1.94
-3.46%
(http://www.cnbc.com/id/15837290?q=US%40CL.1)

INTERNATIONAL...
GB@IB.1
54.05
http://www.cnbc.com/images/cnbc/componentbacks/watchlist_down.gif
-1.55
-2.79%
(http://www.cnbc.com/id/15837290?q=GB%40IB.1)




The Nymex contract had fallen 22 cents to settle at $56.09 a barrel Monday on record high January winter temperatures in the U.S. Northeast. The volatile session saw crude rise as high as $57.72 on reports that OPEC oil ministers are considering another cut in output, and worries that a dispute between Russia and Belarus could result in energy shortages in parts of Europe.
Nigeria's oil minister Edmund Daukoru discouraged talk of any immediate action to support prices by OPEC, which recently resolved to cut output by 1.7 million barrels per day.
"Let's implement the 1.7 million fully then we'll see if there's a need for additional cuts," Daukoru told Dow Jones Newswires.

If OPEC announced another production cut - on top of the 1.2 million barrel-a-day reduction that began in November, and the 500,000 barrel-a-day cut set to begin Feb. 1 - prices would likely rise. Still, OPEC's previous cuts haven't been able to keep crude prices above $60 a barrel for long, largely because many traders doubt that the cuts are fully enforced.
Forecasters expect temperatures in the U.S. Northeast, the world's largest heating oil market, to drop to normal levels over the next couple of weeks. Heating oil futures fell more than half a cent to $1.5498 a gallon while natural gas rose 6.2 cents to $6.440 per 1,000 cubic feet.


Analysts surveyed by Dow Jones Newswires expect U.S. petroleum inventories to rise in government data to be released Wednesday by the U.S. Energy Department. Crude inventories were expected to climb an average of 820,000 barrels, the survey showed.


Crude stocks normally fall this time of year, but with imports rebounding from a recent slump, inventories are likely to rise, said analyst Phil Flynn of Alaron Trading Corp. in Chicago.
Petroleum product stocks are expected to increase for the fourth straight week. Distillate stocks, which include heating oil and diesel fuel, are seen rising by an average of 1.9 million barrels while gasoline stocks are projected to increase by 2.5 million barrels.

[defenseman]

Looking forward to it falling some more...dman

[Spider]

the goverment hasnt done much right when it comes to energy , those energy corridors will help , but the energy companies should be paying for it , not us tax payers ...........Once those energy corridors are complete we should see a significant drop in prices all across the board .......oil , Gas , Elec...propane .........

[XXXII&III]

well, my 401K is tanking dammit

[defenseman]

the goverment hasnt done much right when it comes to energy , those energy corridors will help , but the energy companies should be paying for it , not us tax payers ...........Once those energy corridors are complete we should see a significant drop in prices all across the board .......oil , Gas , Elec...propane .........

Agreed....dman

[Crushaholic]

well, my 401K is tanking dammit

Don't worry about it. The bastards at OPEC won't let this stand for long...

[Bronco_Beerslug]

Still moving down, closed at $51.88 today. That translates into about $1.70 gas here (though it takes at least a week or so for the price to catch up).

[cbs1177]

Opec isn't happy with the lose of income:

http://money.cnn.com/2007/01/11/news/opec.reut/index.htm?postversion=2007011119

[Crushaholic]

Opec isn't happy with the lose of income:

http://money.cnn.com/2007/01/11/news/opec.reut/index.htm?postversion=2007011119

I'm sounding like a broken record, but we HAVE to get off our dependence to foreign oil. It's ridiculous...thwack

[Spider]

I'm sounding like a broken record, but we HAVE to get off our dependence to foreign oil. It's ridiculous...thwack

tap whats under water ............we havent even scratched the surface of the oil and gas in the Gulf

[cbs1177]

Hey you can get $2,000 dollars tax credit for solar power hot water system. And various other stuff energy wise.

http://www.energystar.gov/index.cfm?c=products.pr_tax_credits

[Bronco_Beerslug]

Seems OPEC may losing a little of their clout. Watching today on CNBC after they announced they probably will have an emergency meeting to cut production again, oil did go up some but not as much as I thought it might.

---------------------------------------------------------
OPEC report lifts crude oil futures above $52 in N.Y. (http://tinyurl.com/ylldp3)
(Kyodo) _ The key crude oil futures price rose modestly above $52 a barrel on Friday morning in New York, lifted by a news report that OPEC may hold an emergency meeting to consider an additional production cut by the group of 500,000 barrels a day from Feb. 1.

At 10:15 a.m., the February contract for West Texas Intermediate crude edged up $0.23 from Thursday to $52.11 a barrel.

The rebound proved limited, however, mainly because the view was prevalent that demand for heating oil will remain weak due to unusually warm weather in the U.S. Northeast, a major oil-consuming area.

A Dow Jones report said the Organization of Petroleum Exporting Countries may hold an emergency meeting Jan. 20-21 to consider an additional production cut by the group of 500,000 barrels a day from Feb. 1.

At a meeting in Nigeria in December, OPEC decided to cut the group's oil output by 500,000 barrels a day to 25.8 million barrels, effective Feb. 1.

[Spider]

Seems OPEC may losing a little of their clout. Watching today on CNBC after they announced they probably will have an emergency meeting to cut production again, oil did go up some but not as much as I thought it might.

---------------------------------------------------------
OPEC report lifts crude oil futures above $52 in N.Y. (http://tinyurl.com/ylldp3)
(Kyodo) _ The key crude oil futures price rose modestly above $52 a barrel on Friday morning in New York, lifted by a news report that OPEC may hold an emergency meeting to consider an additional production cut by the group of 500,000 barrels a day from Feb. 1.

At 10:15 a.m., the February contract for West Texas Intermediate crude edged up $0.23 from Thursday to $52.11 a barrel.

The rebound proved limited, however, mainly because the view was prevalent that demand for heating oil will remain weak due to unusually warm weather in the U.S. Northeast, a major oil-consuming area.

A Dow Jones report said the Organization of Petroleum Exporting Countries may hold an emergency meeting Jan. 20-21 to consider an additional production cut by the group of 500,000 barrels a day from Feb. 1.

At a meeting in Nigeria in December, OPEC decided to cut the group's oil output by 500,000 barrels a day to 25.8 million barrels, effective Feb. 1.
A friend told me , Canada ( member of opec BTW) is just right around the corner to flooding the Market with oil shale ........by around the corner we are talking 5 years or less .........

[cbs1177]

Back when oil was trading just above 20 dollars a barrel couple of years ago before 9-11 OPEC support a 40 barrel option on oil. Now that it has reached 70 dollars they are freaking out when it trades in the 50's range. Clearly they have had some socialistic programs while oil was skyhigh but now are not comfortable with it falling to the "normal" range they were comfortable with just with in the last decade. The USA should rip the rug from under them with a comprhemsive energy plan that does away with OPEC and I gurantee that solves the nuclear Iran issue b/c they have no money to applease the lower classes and develop nuclear techno at the same time.

[ak1971]

woo hoo lets hear it for shorting!

[maven]

A friend told me , Canada ( member of opec BTW) is just right around the corner to flooding the Market with oil shale ........by around the corner we are talking 5 years or less .........

Canada is not a member of OPEC

OPEC Statute Countries

Algeria
Indonesia
Iran
Iraq
Kuwait
Libya
Nigeria
Qatar
Saudi Arabia
UAE
Venezuela

[maven]

A friend told me , Canada ( member of opec BTW) is just right around the corner to flooding the Market with oil shale ........by around the corner we are talking 5 years or less .........

I'd like to see how profitable the oil fields in Canada do when/if oil dips below $40 bucks a barrel.

[ak1971]

after getting smoked on crap when wilma didnt hit...never mind

[Bronco_Beerslug]

I'd like to see how profitable the oil fields in Canada do when/if oil dips below $40 bucks a barrel.That won't happen up there unless oil is $60+ and it will take many years to figure how to squeeze oil out of those fields profitably.

[Spider]

Canada is not a member of OPEC

OPEC Statute Countries

Algeria
Indonesia
Iran
Iraq
Kuwait
Libya
Nigeria
Qatar
Saudi Arabia
UAE
Venezuela
huh ............... was Canada part of OPEC just a few years ago ?

[Spider]

I'd like to see how profitable the oil fields in Canada do when/if oil dips below $40 bucks a barrel.

I dont know , dont think oil will ever drop to 40.00 ............. but from what I understand , the oil sands up there are huge , probably well worth R&D tech

[cbs1177]

Oil tumbles to below 51 dollars.

Oil plunges below $51

Crude hits 19-month low after Saudi minister says cuts working, no need for an emergency OPEC meeting.



http://money.cnn.com/2007/01/16/markets/bc.markets.oil.reut/index.htm?postversion=2007011611

[Crushaholic]

It's certainly nice to see gas below 2.00 here. We'll see just how long that lasts...

[Spider]

So I guess the energy corridors were a bunch of shít ..........

[Bronco_Beerslug]

It's certainly nice to see gas below 2.00 here. We'll see just how long that lasts...

Speculators are leaving in droves from the crude market after a lot of them got caught on the short side of this slide caused by warm weather. The Saudis threw a curveball at the rest of OPEC like 1177 posted and stated there was no need for an emergency meeting afterall to cause the latest drop.

[cbs1177]

Speculators are leaving in droves from the crude market after a lot of them got caught on the short side of this slide caused by warm weather. The Saudis threw a curveball at the rest of OPEC like 1177 posted and stated there was no need for an emergency meeting afterall to cause the latest drop.

I think the Saudis were afraid that if oil kept up the pricing liked it had; then other oil markets would open up like the shale oil in Canada and other parts of USA. Doesn't want to lose its grip on the available oil.

[maven]

I dont know , dont think oil will ever drop to 40.00 ............. but from what I understand , the oil sands up there are huge , probably well worth R&D tech

It's already happening and has been happening for years. My point was and it's widely known, the oil sands in Canada are not profitable if oil dips below $40. I believe the current breaking point is $37, as of today. What I'm curious to know is if this # will be generally revised regarding a barrel. Will the R&D continue to lower what it currently takes to dig into the earth. I'm sure you know there are companies currently digging it out 24/7/365 a year.

[defenseman]

I'm sounding like a broken record, but we HAVE to get off our dependence to foreign oil. It's ridiculous...thwack

Ain't happenin over night. Give it about 5 or so decades and we'll be partially there...dman

[Meck77]

Old Bush can't win. When oil goes up Slug starts a thread blaming him. When oil goes down it's the weather....

[Bronco_Beerslug]

Old Bush can't win. When oil goes up Slug starts a thread blaming him. When oil goes down it's the weather.... Where did I blame him? I just post the facts, the interpretation is yours :)


BUT, for your information, the Saudis said they wouldn't cut production this month as a favor to the White House for a forthcoming return in kind to them on some other issue.

[BABronco]

Gas prices at 1.89