Gas, oil prices hit new records

[Sassy]

Gas, oil prices hit new records By JOHN WILEN, AP Business Writer
Wed Apr 9, 3:36 PM ET



NEW YORK - The upward trend in energy prices showed no sign of abating Wednesday as gasoline set yet another record at the pump and crude oil topped $112 a barrel for the first time in the futures market.

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The national average price of a gallon of regular unleaded gas rose 1.2 cents to a record $3.343 a gallon, according to a survey of gas stations by AAA and the Oil Price Information Service. With the peak summer driving season still to come and gas following crude higher, the fuel may well reach the retail price of $4 a gallon that the Energy Department has been forecasting.

But prices that are 55 cents higher than a year ago are hurting demand for gasoline, which fell last week by nearly 2 percent from year-earlier levels, the department's Energy Information Administration said in its weekly inventory report.

"People are cutting back on gasoline purchases because the economy is squeezing them right now," said Phil Flynn, an analyst at Alaron Trading Corp. in Chicago.

The EIA report, closely watched by the futures market, also said crude oil supplies fell by a surprising 3.2 million barrels last week; analysts surveyed by Dow Jones Newswires, on average, had expected an increase of 2.4 million barrels.

That sent light, sweet crude for May delivery up $2.37 to settle at a record $110.87 a barrel on the New York Mercantile Exchange after earlier rising as high as $112.21. That beat a trading record of $111.80 set last month.

Analysts expect demand for gas and oil to fall further as prices rise. Theoretically, that should bring prices down. But so far this year, gas and oil prices have shown little inclination to fall in response to eroding demand. With gasoline supplies shrinking and the summer approaching — when demand, while weaker than last year, will be stronger than it is now — consumers may have to wait until this fall for price relief.

Some analysts cautioned against reading too much into last week's drop in crude supplies.

"We note there was a sharp decline in crude oil imports," said Eric Wittenauer, an analyst at Wachovia Securities LLC in St. Louis, in a research note.

Flynn believes crude imports fell in part because fog closed several shipping channels in Texas and Louisiana that serve as vital oil import conduits last week. "That leads me to suspect that there are more ships out there in the Gulf (of Mexico) that didn't get counted," he said.

Before the EIA issued its report, oil prices were already higher due to the dollar's slide against the euro Wednesday. Many investors see commodities such as oil as an effective hedge against a falling dollar and inflation. Also, a weaker greenback makes oil cheaper to investors overseas.

Analysts attribute much of oil's rise this year to speculative buying tied to the falling dollar. With the Federal Reserve expected to cut rates several more times this year, which will likely further weaken the dollar, oil prices may continue rising despite tepid demand.

The EIA also said supplies of gasoline and distillates, which include diesel fuel and heating oil, fell more than expected last week. May gasoline futures rose 2.38 cents to settle at $2.7742 a gallon on the Nymex — a price move that could also affect what consumers are paying at the pump. Gasoline futures are near the record price of $2.925 that benchmark futures set in 2005 when Hurricane Katrina struck New Orleans.

May heating oil futures rose 12.43 cents to settle at $3.2345 a gallon after earlier rising to a trading record of $3.2561 a gallon.

In other trading, May natural gas futures rose 35.9 cents to settle at $10.056 per 1,000 cubic feet.

In London, May Brent crude futures rose $2.13 to settle at $108.47 a barrel on the ICE Futures exchange.

[L.A. BRONCOS FAN]

http://img169.imageshack.us/img169/7151/missionaccomplishedfb2.jpg

[Meck77]

Let it keep going up. **** them. Maybe we Americans will finally step up and make our government change.

[shakenbake]

Environmentalists/libs will be happy to know oil consumption is down.
http://www.chron.com/disp/story.mpl/ap/fn/5675427.html

I guess the plan of not allowing people to drill for oil in the US or build refineries to process it are finally paying off

[Florida_Bronco]

Environmentalists/libs will be happy to know oil consumption is down.
http://www.chron.com/disp/story.mpl/ap/fn/5675427.html

I guess the plan of not allowing people to drill for oil in the US or build refineries to process it are finally paying off

I cancelled them out by ripping the emissions crap off my Mustang. Got an extra 15 horsepower too! :wave:

[Bronco_Beerslug]

Environmentalists/libs will be happy to know oil consumption is down.
http://www.chron.com/disp/story.mpl/ap/fn/5675427.html

I guess the plan of not allowing people to drill for oil in the US or build refineries to process it are finally paying offOil companies don't particularly want more refineries and the amount of oil we sit on would make only a very tiny difference. I wish people would at least try and inform themselves of the basics when it comes to fossil fuels.

[Bronco_Beerslug]

I cancelled them out by ripping the emissions crap off my Mustang. Got an extra 15 horsepower too! :wave:Yeah, you really showed "them".

[shakenbake]

Oil companies don't particularly want more refineries and the amount of oil we sit on would make only a very tiny difference. I wish people would at least try and inform themselves of the basics when it comes to fossil fuels.

Are you saying there isn't someone out there that would like to build a refinery ? Perhaps the current companies don't see the need or have the desire, but it would be nice to increase a little competition don't you think? Maybe that would help bring the price down.

[Bronco_Beerslug]

Are you saying there isn't someone out there that would like to build a refinery ? Perhaps the current companies don't see the need or have the desire, but it would be nice to increase a little competition don't you think? Maybe that would help bring the price down.Do you really think that is what oil companies want?

[shakenbake]

Do you really think that is what oil companies want?

Do really think that is what the libs and environmentalists want? lower prices would lead to more consumption. Like I said it looks like the plan is working out consumption is down. You should all be dancing with the streets.

[Bronco_Beerslug]

Do really think that is what the libs and environmentalists want? lower prices would lead to more consumption. Like I said it looks like the plan is working out consumption is down. You should all be dancing with the streets.Uh, consumption is only down a fraction and oil company profits will once again be in the 30 to 60 billion dollar range or more this year. Oil consumption will keep increasing worldwide again this year. Oil companies definitely don't want lower prices as they know the planet demands it at most any price.

[shakenbake]

Uh, consumption is only down a fraction and oil company profits will once again be in the 30 to 60 billion dollar range or more this year. Oil consumption will keep increasing worldwide again this year. Oil companies definitely don't want lower prices as they know the planet demands it at most any price.

Yes worldwide oil consumption is on the rise, a major contributing factor to the oil companies making more money. The margins are the same as they were when gas was $1.20 a gallon. They are just selling more of it

However, US consumption is down. Like I said mission accomplished, the price has finally risen high enough to curb US consumption. Really, great news for libs!

[Bronco_Beerslug]

Yes worldwide oil consumption is on the rise, a major contributing factor to the oil companies making more money. The margins are the same as they were when gas was $1.20 a gallon. They are just selling more of it

However, US consumption is down. Like I said mission accomplished, the price has finally risen high enough to curb US consumption. Really, great news for libs!I don't see your point, if you have one. Oil inventories fell 3.2 million barrels last week in this country.

And the margins are definitely not the same at over $100 a barrel.

[shakenbake]

I don't see your point, if you have one. Oil inventories fell 3.2 million barrels last week in this country.

And the margins are definitely not the same at over $100 a barrel.

In reference to the price of Gas it is.

[L.A. BRONCOS FAN]

The margins are the same as they were when gas was $1.20 a gallon.

:bs:

You drank too much of the neocon Kool-Aid. Oil companies are profiting at 3x the rate of the $1.20 per gallon years. $40+ billion for just 1 company and billions more for others just shows how much leeway they have to lower prices. Cost of goods is IRRELEVANT when THEY OWN/PRODUCE THE OIL (THE COST OF GOODS.) They not only own the oil they produce, they own most of the refineries. They then put the oil in the world market where speculators in the stock/commodities exchanges bid up the prices to $100+/barrel due to instablity/war in the Mid East (not to mention Iraq's curtailed production.) Five years after the invasion and Iraq still produces 1/2 the oil it did under Saddam - best thing for Bush's friends in the Texas oil industry & Saudi Arabia is lowered oil production from Iraq. More instablity in the Mid East = higher oil speculation prices.

[shakenbake]

:bs:

You drank too much of the neocon Kool-Aid. Oil companies are profiting at 3x the rate of the $1.20 per gallon years. $40+ billion for just 1 company and billions more for others just shows how much leeway they have to lower prices. Cost of goods is IRRELEVANT when THEY OWN/PRODUCE THE OIL (THE COST OF GOODS.) They not only own the oil they produce, they own most of the refineries. They then put the oil in the world market where speculators in the stock/commodities exchanges bid up the prices to $100+/barrel due to instablity/war in the Mid East (not to mention Iraq's curtailed production. Five years after the invasion and Iraq still produces 1/2 the oil it did under Saddam - best thing for Bush's friends in the Texas oil industry & Saudi Arabia is lowered oil production from Iraq. More instablity in the Mid East = higher oil speculation prices.

Either way you should be happy right...It is starting to curb US consumption.

[Florida_Bronco]

This is one where I agree with LABF. The oil companies are creating an artifical shortage and sticking it up our ass everyday.

[L.A. BRONCOS FAN]

Either way you should be happy right...It is starting to curb US consumption.

That's a simpleton way to look at it.

Sure, we know we need to reduce consumption, transition to alternative energy sources, etc., but we also need to do it in an orderly fashion (i.e., one that doesn't wreak havoc on our entire economy.)

[L.A. BRONCOS FAN]

This is one where I agree with LABF. The oil companies are creating an artifical shortage and sticking it up our ass everyday.

Only a fool would deny the evidence of this - regardless of politics.

[Florida_Bronco]

Only a fool would deny the evidence of this - regardless of politics.

I just want to see something done about it. I'm tired of being raped at the gas pump.

[L.A. BRONCOS FAN]

I just want to see something done about it. I'm tired of being raped at the gas pump.

I think it's a safe bet that most Americans - regardless of their politics - are with you on that one.

[W*GS]

I just want to see something done about it. I'm tired of being raped at the gas pump.

Quit using so much gas.

[Florida_Bronco]

Quit using so much gas.

I'm already using the least amount possible. I very rarely "go out" unless its within a couple miles and everytime I drive I'm in 5th gear with the RPMs under 2000. Everything else is required driving (work, grocery shopping...etc) and even then I take measures to minimize the amount of driving.

Plus I keep my car in great shape including recent tune ups.

I really can't think of anything more I can do to significantly lower my gas consumption.

[Hogan11]

This is one where I agree with LABF. The oil companies are creating an artifical shortage and sticking it up our ass everyday.

$40.00 to fill up a 1993 Toyota Celica ST......40 freakin' dollars. I remember when it took $13.00 to do that.

[Spider]

Are you saying there isn't someone out there that would like to build a refinery ? Perhaps the current companies don't see the need or have the desire, but it would be nice to increase a little competition don't you think? Maybe that would help bring the price down.

come on you are not this ****ing stupid . if you are I will apologize ...... No ****ing way do Greenies and Libs have that kind of ****ing power over oil ..... I have seen it with my own eyes , BLM's in Colorado , Utah , Wyoming writing permits at will , North Dakota same way ...... ****ing educate yourself .....is that to much to ask ?

[Florida_Bronco]

$40.00 to fill up a 1993 Toyota Celica ST......40 freakin' dollars. I remember when it took $13.00 to do that.

Completely unacceptable.

[Bronco Yoda]

I refuse to carpool when I have a perfectly good hummer in the garage :)

[Meck77]

I'm doing my best to get off the grid. I'll be ordering solar panels soon. Already have a windmill in operation. Looking into hydro electric power as I do have some running water available. Dumped the Toyota Land Cruiser in exchange for an old subaru that barely uses any gas in comparison.

I've made the point before but will do so again. I think higher energy prices aren't necessarily a bad thing if we are willing to adjust and also demand some change within our government.

The higher prices go the more we'll be motivated to change our patterns of consumption.

[Rohirrim]

I refuse to carpool when I have a perfectly good hummer in the garage :)

I've been married for 17 years. I don't know what "hummer" means.

[bronclvr]

I've been married 15 Years and DO know what Hummer means! :thumbs: :thanku: !Booya! :twokisses

[Beantown Bronco]

I've been married 15 Years and DO know what Hummer means! :thumbs: :thanku: !Booya! :twokisses

hookers don't count. :-*

[baja]

$40.00 to fill up a 1993 Toyota Celica ST......40 freakin' dollars. I remember when it took $13.00 to do that.

I wish I could fill the tank for 40 dollars it cost 60 and that's in Mexico.

[W*GS]

I've been married for 17 years. I don't know what "hummer" means.

You know why the bride is smiling on her wedding day?

She knows she's given her last hummer.

[L.A. BRONCOS FAN]

http://www.bartcop.com/big-oil-easy.jpg

[Bronco_Beerslug]

I wish I could fill the tank for 40 dollars it cost 60 and that's in Mexico.Costs me about $55 to fill up my truck (26 gallons).

[baja]

Costs me about $55 to fill up my truck (26 gallons).

I go through a tank a week and I'm only about 5 miles from where I work. I go to Cabo about once a week and thats 30 miles so I really don't know where it goes. I drive a Toyota Land Cruiser.

[Bronco_Beerslug]

I go through a tank a week and I'm only about 5 miles from where I work. I go to Cabo about once a week and thats 30 miles so I really don't know where it goes. I drive a Toyota Land Cruiser.I drive a Silverado 4X4 crew cab, E-85 is about $2.24 a gallon.

[baja]

Gas here is about $2.70 a gal and has been in that range for over 10 years. There was a time when all border town drivers would go to the US to fill up and with your $2.25 that is probably still the case.

[Bronco_Beerslug]

Gas here is about $2.70 a gal and has been in that range for over 10 years. There was a time when all border town drivers would go to the US to fill up and with your $2.25 that is probably still the case.Well, unleaded is about $3.30 on average across the country. So I doubt if they are coming up here right now.

[L.A. BRONCOS FAN]

http://www.bartcop.com/vase-gaso.jpg

[W*GS]

...and despite the fact that oil is at a record high, Venezuelans are suffering shortages of basic foodstuffs and Chavez is running low on funds.

WTF has he done to the Venezuelan economy, LABF? Oh yeah - he's followed your ideology and totally ****ed Venezuela.

Pity you have no sense of embarrassment or shame...

[L.A. BRONCOS FAN]

Wrong thread. This one is about gas prices.

Yvonne already started a right-wing Chavez disinfo thread - why don't you post there?

http://bartblog.bartcop.com/wp-content/uploads/2008/04/nothing-personal.jpg

[W*GS]

Look at LABF trying to spin his way out of his long-standing (and solitary) support of Chavez...

BTW, about the only "disinfo" about Chavez anyone has posted here on WPR has come from you...

[L.A. BRONCOS FAN]

Look at W*GS the Bush/Exxon brownie hound jack a thread about gas prices and turn it into a Chavez thread.

Deflection is the only arrow left in his quiver.

[W*GS]

Look at W*GS the Bush/Exxon brownie hound jack a thread about gas prices and turn it into a Chavez thread.

Still ashamed of your long-standing job as Chavez' fluffer, I see.

The thread title is "Gas, oil prices hit new records", not just gas prices, dork.

Besides, your hero Chavez' only hope of keeping his "revolucion" alive is that oil prices stay high. If they dip, he's in the ****ter.

[Bronco_Beerslug]

Chavez' only hope of keeping his "revolucion" alive is that oil prices stay high. If they dip, he's in the ****ter.Uh, that isn't probably going to happen (in any significant percentage anyway).

[W*GS]

Chavez and Venezuela will be in a world of hurt if oil takes a dive. As noted earlier, despite the current record oil price, Chavez is running short of cash and Venezuelans are dealing with empty store shelves.

What sort of ****ed economic "thinking" does it take to accomplish those things? Oh yeah - socialism.

[L.A. BRONCOS FAN]

I wonder if W*GS gets his anti-Chavez disinfo e-mailed to him straight from ExxonMobil?

http://home.swbell.net/jekenn/Cheney_Ho.gif

[L.A. BRONCOS FAN]

Oil briefly rises to record above $112 a barrel on weakening dollar (http://www.yahoo.com/s/857696)

[L.A. BRONCOS FAN]

There Is No Gas Shortage

<!--/HEADLINE--> <!--DECK--> But Washington, Wall Street, and ethanol and oil and gas companies want you to think there is, says automotive expert Ed Wallace


"They see speculation in the market, I see decline in global inventories. I don't think this is a big surprise, that we've had a jump in price when there has been a decrease in crude inventories."— Energy Secretary Sam Bodman, <cite>Bloomberg News</cite>, Mar. 5, 2008


"It should be obvious to you all that the [gasoline] demand is outstripping supply, which causes prices to go up." — President George W. Bush, Associated Press, Mar. 5, 2008


One wonders if verifiable facts ever get in the way of this administration's statements on issues that are critical to the average American's wellbeing. After all, last time I checked, when politicians are elected to public office, or appointed, as is Energy Secretary Samuel W. Bodman, they must take an oath to the American people before assuming their new positions. How can they forget a sacred oath so quickly? Were they daydreaming when they took it, so it never meant anything to begin with? Maybe it's just another promise you have to make to get into office: When you're securely incumbent you can ignore even solemn oaths you took.
Obviously, the two quotes that led this article came from discussions concerning the current high price for oil on the futures market. Bodman appears to be protecting the speculators in oil, as opposed to looking after the interests of all Americans. President Bush, apparently, has never talked to the Energy Dept.'s Energy Information Agency to see whether gasoline demand is actually up. More troubling, the writer of that particular Associated Press article obviously didn't look up the EIA's numbers to verify the President's assertions. They weren't accurate.

1. There Is No Shortage
Gasoline reserves on hand are at the highest levels since the early 1990s, which is remarkable considering the nation's refineries have been cutting back on the production of gasoline because their margins have declined. In fact, average gasoline reserves on hand have risen since this past October, while oil reserves in this country have gone up virtually every week this year—and only fog in the Houston Ship Channel that kept oil tankers from unloading their crude one week kept it from being every week.
In the same Bloomberg article that quotes from Bodman's CNBC appearance on Mar. 4, he also said that it was thanks to ethanol that the gasoline problem isn't even worse. He then added that the fact that making ethanol is forcing up prices of other farm commodities, including hog and chicken feed, is "nowhere near as important as trying to relieve pressure on [gasoline] supplies."
Of course, there is no pressure on gasoline supplies in this country as of today, but Bodman's statement must have made eyes roll among the executives at Pilgrim's Pride PPC (http://investing.businessweek.com/research/stocks/snapshot/snapshot.asp?symbol=PPC); the Pittsburg, (Tex.) poultry producer announced 1,100 layoffs on Mar. 13, closing one processing plant and 6 of their 13 distribution centers because their company's outlay for chicken feed went up $600 million last fiscal year and was on track to increase by another $700 million this year.
Here's the scorecard, in case you missed it. There's no shortage of gasoline or oil in the U.S. today, and we have near-record reserves on hand. Meanwhile the Congressional mandate for ethanol has jacked up the price of chicken feed for Pilgrim's Pride, which is the U.S.'s largest processor of chickens and turkeys—by $1.3 billion. And that's for just one company processing chicken. This is what passes for acceptable to our Energy Secretary?

2. Demand Is DOWN, Yet Prices Are UP
Just so we can all get on the same page, here are the verifiable facts on oil supplies, production, and gasoline demand.
In January of this year, the U.S. used 4% less petroleum than we did a year ago. (Oil demand was down 3.2% in February.) Furthermore, demand has been falling slowly since July of last year. Ronald Bailey of Reason Online has pointed out that worldwide production of oil has risen 2.5% in the first quarter, while worldwide demand has grown by only 2%.


Continues:


http://www.businessweek.com/lifestyle/content/apr2008/bw2008041_945564.htm?chan=top+news_top+news+index_ businessweek+exclusives

[W*GS]

I wonder if W*GS gets his anti-Chavez disinfo e-mailed to him straight from ExxonMobil?

Remember, folks - what LABF calls "disinfo" regarding Chavez is what everyone else calls "truth".

[L.A. BRONCOS FAN]

What W*GS calls "truth" has been exposed as right-wing corporatist propaganda time and time again (anyone remember the corporate media's reporting of the Venezuelan coup attempt?)

[W*GS]

What W*GS calls "truth" has been exposed as right-wing corporatist propaganda time and time again (anyone remember the corporate media's reporting of the Venezuelan coup attempt?)

This from the guy whose unfortunate (for his cause) use of "VHeadline" as a source to "prove" his beliefs about Chavez made him a laughingstock...

Remember

"There is more freedom of speech and press in Venezuela than in any other country in the world."

A sad, sick joke...

Of course, Chavez is a socialist (and it's ashamed to admit it); LABF is a socialist (but too ashamed to admit it), so LABF loves Chavez, despite the fact the man is running Venezuela into the ground.

[L.A. BRONCOS FAN]

Another blow to W*GS' cause:

ExxtortionMobil holdup of Venezuela fails...

Court reverses Exxon freeze on Venezuela assets

LONDON (Reuters) - A British judge on Tuesday lifted a $12 billion (6 billion pound) freeze on Venezuelan assets awarded to Exxon Mobil (XOM.N: Quote, Profile, Research), dealing a blow to the oil giant in its fight with the OPEC nation over President Hugo Chavez's nationalization crusade.

The ruling hands a victory to Chavez in the bare-knuckles dispute between the largest U.S. oil company and one of the world's most oil-rich countries that boosted energy market tensions and helped push oil prices to new records above $112.

"Our people won, our country won, our homeland won," said Energy Minister Rafael Ramirez in a press conference, after earlier describing the decision as a "100 percent" victory for Venezuela. "The judge's decision is a lesson to Exxon Mobil."

Venezuela and Exxon are in international arbitration over the 2007 takeover of an oil project Exxon once ran. The company wants at least $5 billion in compensation, but Venezuela insists the assets are worth less than $1 billion.

Venezuela's sovereign bond prices rallied almost 1.2 point in price on Tuesday's decision, recouping some losses from sell-offs earlier in the year. Exxon Mobil shares closed up 3.12 percent to $88.47 per share on the New York Stock Exchange.

The Texas company won the injunction orders in January after arguing state oil company PDVSA could sell off so many assets that it might be not be able to pay compensation in an eventual ruling over the Cerro Negro heavy oil project.

The judge discarded the measure and ordered Exxon to pay PDVSA's legal costs and compensation for some of the damages caused by the measure.

http://uk.reuters.com/article/businessNews/idUKL188568920080318

[Rohirrim]

Well, today is tax day. I just feel fortunate that I was able to send in my little bit of subsidy money to the oil companies so they could continue their record of soaring profits by gouging me at the pumps. Let's see. Which of the three presidential candidates will end all of these subsidies? Ding, ding. We have a winner. That's right. None of them.

[Bronco_Beerslug]

Well, today is tax day. I just feel fortunate that I was able to send in my little bit of subsidy money to the oil companies so they could continue their record of soaring profits by gouging me at the pumps. Let's see. Which of the three presidential candidates will end all of these subsidies? Ding, ding. We have a winner. That's right. None of them.Which one will will finally commit billions to alternative and renewable energy, not the old man with an itch to play war, guaranteed.

[Rohirrim]

Which one will will finally commit billions to alternative and renewable energy, not the old man with an itch to play war, guaranteed.

You must not have seen the Exxon Mobil commercials. They're part of the solution. ;D

[Bronco_Beerslug]

You must not have seen the Exxon Mobil commercials. They're part of the solution. ;DI have seen those and the Shell ones too. :~ohyah!:

[L.A. BRONCOS FAN]

You must not have seen the Exxon Mobil commercials. They're part of the solution. ;D

:laugh:

http://www.bartcop.com/yuk-monkey.jpg

[L.A. BRONCOS FAN]

http://bartblog.bartcop.com/wp-content/uploads/2008/04/gasoline.gif