Oil prices are retreating today following this week's report that shows gasoline inventories rising more than analysts had been expecting. So far on the day oil prices have pulled back $0.92 to $62.57 in today's action.When The Energy Information Administration released this week's inventory report, analysts had been expecting to hear that gasoline inventories had risen by 1 million barrels, but in fact the report indicates a rise of 1.3 billion barrels.
While it is good to see the nation's gasoline stockpiles rising, don't expect to see too much relief at the pump just yet. This past weekend we officially entered the high-demand summer driving months, which is sure to apply future upward pressure on prices. The recent record-high gasoline prices have been mostly a result of unusually low output from the nation's refineries and we still have not seen production really start to climb.
Despite the rise in gasoline reserves, oil inventories fell last week while analysts had expected a slight rise, but so far the market is giving more weight to the unexpected rise in gas. Oil inventories fell by 2 million barrels last week, while analysts had been planning to see an increase of around 300,000 barrels.
So for now it looks like the gasoline situation is getting back on track, but with total inventories still below the annual average for this time of year, it is going to take a while before we get some much needed help with prices.
Here is a current chart of oil:
Michael Fowlkes has worked as a stock trader for seven years and spent the last two years working as an analyst for the online investment advisory service Investor'sObserver.
Here is a current chart of oil:
Michael Fowlkes has worked as a stock trader for seven years and spent the last two years working as an analyst for the online investment advisory service Investor'sObserver.
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Reader Comments (Page 1 of 1)
5-31-2007 @ 4:38PM
Rratmaster said...
We need some help here in Michigan!! We are the hardest hit by the economy and we are being raped by the gas companies!
6-01-2007 @ 10:46PM
M W Clark said...
I am 72 years old and have spent about 35 years
involved with oil field drilling and refinery's
in Oklahoma and Texas. My dad drilled in east Texas
around Killgore and Gladewater.
I have can't recall when all the refinery's were
partly or completely shut down for repairs and accidentsat the same time. The oil company's are keeping the prices high by design. To offset what you are output any extra money in a mutual fund as the oil company's will disclose their profits soon and you will see what I mean. I am not selling mutual funds but, if, you want to invest in one look at Fidelity's " SELECT ENERGY " up $ 4.14 in past 30 days. and up year to date $ 12.27. But, talk to a broker before you invest in it.