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Gas prices jump another 10 cents to $4.10 average

Joseph Lazzaro — Mon, 23 Jun 2008 11:22:00 EST

The upward arc of gasoline prices in the United States continues.

The average U.S. price for a gallon of gasoline rose 10 cents in the past two weeks to $4.10, the Lundberg Survey announced, The Associated Press reported Monday.

Mid-grade gasoline averaged $4.22 per gallon; premium, $4.33. Tulsa, Oklahoma recorded the cheapest regular unleaded gasoline in the nation, at $3.76; the Los Angeles and Fresno areas of California, the highest, at $4.59 for regular unleaded.

Further, the average gasoline price is up $1.10 or 36% compared to a year ago. The Lundberg Survey collects price data from 5,000 gas stations nationally.

Further, gasoline's record price rise has renewed a policy debate between Republicans and Democrats in Washington concerning the most effective way to lower gasoline prices, Bloomberg News reported. Republicans favor lifting the ban on offshore drilling, while Democrats favor increasing vehicle fuel efficiency requirements.

Gasoline Analysis: Despite a considerable reduction in U.S. gasoline consumption, year-over-year, U.S. gasoline prices continue to march higher, due to higher oil costs and an inadequate U.S. refinery system. Further, assuming prices follow their historical, seasonal path -- upward through at least the July 4 holiday period -- in the U.S., the average gasoline price is likely to exceed the U.S. Energy Information Agency's estimate of $4.15 per gallon -- a level that will continue to reduce disposable income and lower GDP growth.

Gas prices jump another 10 cents to $4.10 average originally appeared on BloggingStocks on Mon, 23 Jun 2008 11:22:00 EST. Please see our terms for use of feeds.

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Oil idles at $134 after weekly inventories fall less than expected

Joseph Lazzaro — Wed, 18 Jun 2008 13:50:00 EST

Filed under: Commodities, Oil

Oil treaded water at $134 per barrel Wednesday after the U.S. Energy Information Administration announced that weekly crude oil inventories fell a smaller-than-expected 1.2 million barrels.

Economists surveyed by Bloomberg News had expected crude oil inventories to decrease by 1.75 million barrels last week. Also, gasoline supplies fell 1.2 million barrels.

The decrease in oil inventories had little affect on oil prices, at least initially. In mid-day Wednesday trading, oil was up 5 cents to $134.06 per barrel. The other major energy commodities were also virtually unchanged. Unleaded gasoline fell about 1 cent to $3.39 per gallon. Heating oil fell about 2 cents to $3.60 per gallon. Natural gas gained 7 cents to $13.02 per million BTUs.

U.S. crude oil inventories now stand at 301 million barrels and are at the lower boundary of the average range for this time of year, the EIA said. Oil inventories have dropped for five straight weeks, resulting in a reduction of 25 million barrels. Also, over the last four weeks oil imports averaged about 9.7 million barrels per day, down about 487,000 barrels per day compared to the same period a year ago.

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Oil idles at $134 after weekly inventories fall less than expected originally appeared on BloggingStocks on Wed, 18 Jun 2008 13:50:00 EST. Please see our terms for use of feeds.

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Oil falls below $90 as inventories rise, yet IEA maintains demand estimate

Joseph Lazzaro — Wed, 16 Jan 2008 13:06:00 EST

Filed under: International Markets, Other Issues, Oil

Oil plummeted $2.38 to $89.52 in early trading Wednesday after the U.S. Energy Information Agency announced that weekly crude oil inventories rose 4.3 million barrels to 287.1 million barrels, well above the 1.25 million barrel increase consensus estimate.

Heating oil fell 4 cents to $2.49, unleaded gasoline fell about 5 cents to $2.26, and natural gas fell about 4 cents to $8.15 per million BTUs.

However, despite the prospect of a U.S. recession that could lower oil demand, the International Energy Agency maintained its 2008 global oil demand forecast at 87.8 million barrels per day, a 2.3% increase from 2007, the organization announced Wednesday in a statement.

Still, the IEA qualified its 2008 oil demand projection by saying the estimate would be adjusted downward if evidence indicated the U.S. economy continues to slow.

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Oil falls below $90 after Canada pipeline re-opens

Joseph Lazzaro — Fri, 30 Nov 2007 10:40:00 EST

Filed under: Good news, Russia, Middle East, Venezuela, Mexico, Canada, Commodities, Oil

Oil fell below $90 per barrel for the first time in a month Friday, after Enbridge Inc. reopened the biggest pipeline to the U.S. from Canada, Bloomberg News reported.

Crude declined $1.67 to $89.34. Heating oil fell about 4 cents to $2.53, and unleaded gasoline declined 3 cents to $2.23.

Independent Energy Trader Jim Dietz told Bloggingtocks Friday that the Canada pipeline accident was a momentary event that only temporarily deflected the oil market away from an ongoing oil price pullback.

"With OPEC's likely production increase, sentiment has shifted to a continued pull-back for oil. If we close below $90 per barrel today, that would be bearish for oil, short-term, but good news for just about everybody else, I guess," Dietz said.

Saudi Arabia, OPEC's biggest producer, indicated it will increase production by 500,000 barrels of spare capacity in December to ensure that consumers are adequately supplied, Oil Minister Ali al-Naimi said in Singapore on Nov. 28, Reuters reported.

Safety cushion

Dietz said oil demand remains strong, but OPEC's effort, led by Saudi Arabia, increases the oil market's safety cushion, or the difference between global oil supply and demand.

"Traders are confident now that there will be enough oil for the [Northern Hemisphere] winter," Dietz said. "The Saudi's decision makes an enormous difference in this market. There's even a chance that some crude supplies could begin to build in certain areas, which would be a change for this market."

The 10 OPEC countries subject to quotas will supply 27.5 million barrels a day this month, according to the U.S. Energy Information Agency. OPEC's official production target is 27.25 million barrels per day.

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Oil falls below $90 after Canada pipeline re-opens originally appeared on BloggingStocks on Fri, 30 Nov 2007 10:40:00 EST. Please see our terms for use of feeds.

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