Oil Passes $111, Gasoline Hits Record on Unexpected Drop in U.S. Supplies

[Purveyor]

Source: Bloomberg News

April 9 (Bloomberg) -- Crude oil rose above $111 a barrel in New York and gasoline surged to a record after a government report showed that U.S. supplies unexpectedly dropped.

Crude oil inventories fell 3.15 million barrels to 316 million last week, the Energy Department said. A 2.3-million- barrel gain was forecast, according to a Bloomberg News survey. Metals futures also rose as the dollar fell against the euro, and gasoline pump prices reached a record average $3.343 a gallon.

``It looks like this move will accelerate and prices will move toward $115,'' said Tom Bentz, a broker at BNP Paribas in New York. ``This is all part of the big uptrend, and where it stops nobody knows.''

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Gasoline for May delivery climbed 3.86 cents, or 1.4 percent, to $2.789 a gallon. Futures reached $2.8228, an intraday record for gasoline to be blended with ethanol, known as RBOB, which began trading in October 2005.

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Refineries operated at 83 percent of capacity last week, the Energy Department report showed. Plants used 88.4 percent during the same week last year. Refiners operated at 82.2 percent in the week ended March 21, the lowest since October 2005, the department said.

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Supplies of gasoline and distillate fuel, including heating oil and diesel, also fell. Gasoline inventories dropped 3.44 million barrels to 221.3 million last week, the report showed. A 3-million-barrel decline was expected.



Read more: http://www.bloomberg.com/apps/news?pid=20601103&sid=akOno6jSgdpo&refer=news

[Andy823]

1. Prices in my area jumped

Up 4 cents on Monday, and Tuesday it went up "another" 3 cents! Now regular is $3.59.

Looks like the oil companies really got the message when they went before congress! The message to raise the price and get all they can while the getting is good!!!!:grr:

[shraby]

2. How can supplies have "unexpectedly dropped"

that makes no sense when I'm sure the oil companies know how much they have at any one time.

[Purveyor]

6. "Refiners operated at 82.2 percent in the week ended March 21, the lowest since October 2005,"

It wasn't unexpected. The bastard oil companies are cutting back on production to keep the prices high.

I don't want to here this crap about 'not enough refining capacity'...

[PittPoliSci]

10. and considering last week I read an article about them intentionally cutting production,

it is completely not surprising to me. absolutely ridiculous.

[ORDagnabbit]

3. something will happen and the populace will turn and burn the super rich.

[kestrel91316]

4. Regular at the el cheapo independent nearby went from $3.55

to $3.67 in the past two days. I blinked, and look what happened. 12 cents virtually overnight.

My benchmark is $4.00. When it hits $4, I start taking the bus to work sometimes and the bike other times, and walk sometimes. The bus is more expensive than driving even now, or I'd do it all the time already.

[Supersedeas]

5. so, about our interest in the Middle East

[superkia]

11. ITs not our interests in the middle east, its our corrupt governments...

and their elite boss' interest. I am not angry at the oil companies for what they are doing, I am angry with our government for being in bed with them and trying to run us all into poverty. Money is power and when we have next to nothing, we will be their personal slaves to continue physically running the country no matter what they put us through.

Also, the planet can only handle so many people, so at some point, the elites agenda will have to address who goes first. Considering there are food riots in other countries already, I am guessing they are going to kill off the poor first, not on purpose but just because of the unfortunate situation with the dollar due to their continued bailouts of the wealthy. Oh, wait, they did do that on purpose... I forgot.

[nichomachus]

7. Assume the position

[progressoid]

8. See? the economy is strong!

err...what?

[BootinUp]

9. In related news, KY jelly supply and demand is up. nt

[Delphinus]

12. US supplies unexpectedly dropped?

Yeah, right.

And did you see this: Oil's

80 percent gain during the past year

is the second biggest among 19 commodities on the Reuters/Jefferies CRB Index, trailing only wheat, which doubled. Rising global demand for raw materials and a weakening dollar have led to records this year for raw materials including corn, soybeans, rice and gold.

It's not freaking wonder people are not making it - where are OUR riots like Haiti?

[samsingh]

13. unbelievably high and going to be difficult on families

[Altean Wanderer]

14. And oil production hasn't even slipped off the peak yet!

As bad as oil prices are now, they'll be much higher once production of 86 million barrels per day cannot be sustained, perhaps in the period 2010 - 2012.

www.theoildrum.com