Oil prices tumble on fuel report (BBC News)

[Up2Late]

(I'm not sure which market they are refering to, because this price cut doesn't show on the BBC News charts).

Thursday, 4 May 2006, 00:53 GMT 01:53 UK

Oil prices tumble on fuel report

Crude oil prices have tumbled by more than $2 a barrel after a government report showed that US petrol reserves have increased.

Concern that gasoline supplies would not be able to meet demand during the summer holiday months has been one of the factors underpinning record prices.

New York light crude shed $2.33, or 3.1%, to $72.28. London's main contract Brent crude slid $1.99 to $72.65. That slide helped push US gasoline prices more than 4% lower.

'Trimming travel'

The Energy Information Administration (EIA) said on Wednesday that gasoline stocks in the US rose by 2.1 million barrels last week. Analysts said that the increase, the first since February, may have been down to consumers driving less because of higher petrol prices. "I think high prices, without question, are starting to have an effect on demand," said Bill O'Grady, an analyst at AG Edwards.

His comments were echoed by Mark Routt, an analyst at Energy Security Analysis, who said that there "is evidence that American drivers are making some adjustments as a result of high prices". "People are trimming discretionary travel, and choosing options other than driving to get places when they have that choice," he said.

(more at link)

<http://news.bbc.co.uk/2/hi/business/4970954.stm>

[wordpix2]

1. So now $72/barrel shows "oil prices have tumbled." We're paying 300%

higher prices at the pump than 4 yrs. ago. I know this because when I bought my Civic in Mar. 2002, I could fill my tank for $11-12. Now it costs $32-33 for a tankful.

[Up2Late]

2. SURE! And just think how much a bargain $60.00 per barrel oil...

...would seem, right about now... :think:


...unless you actually compare it to the $26.00 per barrel oil (or less) from 5 years ago, when Clinton was in office. :cry:

[bluestateguy]

3. Big oil wants us to accept a "new normal"

So that we all celebrate when the price of gas is "down" to $2 a gallon.

[Roland99]

10. That's actually 200%, not 300%

:)

A 100% increase would be doubled...200% increase is triple.

[magellan]

4. It's just another bobble

The trend is up and will continue that way in the long term.

[catnhatnh]

5. Actually earlier today on DU there was a report of a new field...

just off Louisiana estimated at -get this-60 BBB-Billion BBB-Barrels-thereby quadrupling US reserves (was 20B...now 80B as compared to current Saudi reserves of 260 B)....which is probably 2 years from commercial pumping....this is a golden opportunity,the current enforced hardship will teach us to both treasure and conserve this find which could easily carry us the 100 years or so to convert our technologies fully...So clear the bastards out,straighten up the republic,and learn some greening and we need not shiver in darkness....but first things first...repubs OUT...

[depakid]

6. Gotta watch what you see on DU

that story was bogus.

[Up2Late]

7. Yup, I don't know where that find crap like that.

Did you check out the website it came from? Really weird stuff there, I wasn't sure what to make of that site, but that story was complete crap.

One tip for everyone, Google any headline that sounds too good to be true, then click the Google News link. If it's only at the "Peak Oil" and "Oil Business" sites, but not at any of the actual news sources, it probably fake.

[0007]

13. Kinky junior high

[henslee]

9. It's getting to the point where you can pick out those sketchy newsites

just by their names..

[Media_Lies_Daily]

8. Right. More crapola from the crapola makers.

[Imagevision]

11. And when will the gas prices to begin to... "tumble"

[Up2Late]

15. I heard an interview the other day with a Gas Station owner...

...he said the expressions they use is "Up like a Rocket, Down like a Feather."

You might not believe this, but the Gas Station or Convenience store owner are making the same margin (about $0.10 per gallon) at $1.00 per gallon as at $3.00 per gallon.

[Ghost Dog]

12. Yeah, Reuters has this "unexpected" story here:

Oil falls to $72 on unexpected US gasoline build
Thu May 4, 2006 4:05am ET
http://today.reuters.com/news/articlenews.aspx?type=businessNews&storyid=2006-05-04T080515Z_01_SP114178_RTRUKOC_0_US-MARKETS-OIL.xml
By Jiwon Chung

SINGAPORE (Reuters) - Oil edged down to $72 a barrel on Thursday, deepening a 3 percent fall after U.S. data showed an unexpected rise in gasoline inventories.

U.S. light sweet crude traded down 19 cents at $72.09 a barrel by 0707 GMT. It slumped more than $2 a day ago after the higher stock levels soothed concerns about gasoline supply. IPE Brent crude lost 21 cents to $72.44.

Gasoline stocks in the United States rose 2.1 million barrels to 202.7 million barrels in the week to April 28, U.S. Energy Information Administration (EIA) data showed, beating expectations of a modest drop and ending an eight-week falling streak. S]

The data also showed that gasoline demand of 9.13 million barrels per day (bpd) was unchanged versus last year, despite normal growth of about 2 percent, although brokers said it was a bit early to conclude that soaring pump prices had hit demand.

"The gasoline build was a little surprising but you need more than one week's data to say we've reached the breaking point for consumers," said John Brady, energy broker at ABN AMRO in New York.

Crude inventories rose 1.7 million barrels while distillate stocks dipped 1.1 million barrels, the data showed. Refinery runs rose 0.6 percentage point to 88.8 percent of capacity.

/more...

[CentralEuropeanDude]

14. When will it upcrash to just below $100??

Funny thread at peakoil.com
http://peakoil.com/fortopic19775.html

[gizmo1979]

16. Reserves are at their highest levels since

1998.I read in the paper today that gas stockpiles were at record levels,so what's the deal with supply and demand?Supply is way up shouldn't gas be at 1998 levels?