heating oil prices posts
FeedPosted Feb 15th 2008 4:38PM by Joseph Lazzaro (RSS feed)
Filed under: International Markets, Forecasts, Commodities, Oil
The Organization of Petroleum Exporting Countries cut its forecast for Q1 2008 global oil demand by 130,000 barrels per day to 87.19 million barrels per day on the threat of a U.S. recession, the cartel announced Friday,
in its latest monthly report.
"A sharp economic slowdown, especially in the U.S., may further undermine demand growth in the coming months,"
OPEC said. It added that current OPEC output near 32 million barrels per day could help ease market fundamentals.
Crude oil was virtually unchanged on the news Friday afternoon, rising 1 cent to $95.47 per barrel.
Heating oil fell about 3 cents to $2.63 per gallon,
wholesale unleaded gasoline declined about 1 cent to $2.47, and
natural gas dropped about 6 cents to $8.71 per million BTUs.
Continue reading OPEC trims 2008 global oil demand forecast on slowing U.S. economy
Posted Feb 8th 2008 1:45PM by Joseph Lazzaro (RSS feed)
Filed under: Commodities, Oil
The Organization of Petroleum Exporting Countries may reduce production when it meets next month as part of a strategy to try to keep the price of oil above $80 per barrel,
Bloomberg News reported Friday.
Bloomberg quoted unnamed OPEC sources as saying OPEC would lower production if prices slip below $80 per barrel, with one oil minister saying $70 per barrel would be unacceptable to most members. If prices stay above $85, the cartel would not cut production. OPEC meets next on March 5.
Oil surged $2.74 to $90.85 per barrel Friday at midday on the news. Meanwhile, heating oil rose about 5 cents to $2.50 per gallon, gasoline gained 3 cents to $2.29 per gallon. Natural gas rose about 6 cents to $8.17 per million BTUs.
OPEC, which produces about 40% of the world's oil, is said to be concerned that the U.S. economic slowdown could hurt oil demand growth.
OPEC expects global oil demand of 87.4 million barrels per day in the first quarter and 85.5 million in the second quarter. Meanwhile, the International Energy Agency expects slightly higher demand during the two periods, 88.2 million in the first quarter and 86.7 million in the second quarter.
Continue reading Oil surges past $90 on talk OPEC will defend $80 oil in spring
Posted Jan 29th 2008 2:42PM by Joseph Lazzaro (RSS feed)
Filed under: International Markets, Oil
Iran's Oil Minister Gholam-Hossein Nozari said Tuesday that there's no reason for OPEC states to increases oil production,
PressTV Iran reported.
"There is no reason for the Organization of Petroleum Exporting Countries (OPEC) to raise output as we are approaching the warm season," Nozari noted ahead of OPEC's meeting in Vienna on Friday, February 1.
The West, including the United States, has stepped up pressure on OPEC members to increase oil production to combat persistently high energy prices that many economists believe have slowed the U.S. and global economies. OPEC supplies about 40% of the world's oil.
Continue reading Iran: No need for OPEC to increase production
Posted Jan 22nd 2008 4:26PM by Joseph Lazzaro (RSS feed)
Filed under: International Markets, Other Issues, Commodities, Oil
Tuesday was a good day to be flat -- or to have no open trades -- in the oil markets.
Independent energy trader Jim Dietz said he was flat Tuesday, and very happy to be so.
"The market ripped down $3 [per barrel] on Asian and European market sell-offs, then ripped up after the Fed's rate cut announcement. It was a great day to be flat," Dietz said. "In other words it was a day that could ruin both oil bulls and bears."
For the day,
oil closed down 85 cents to $89.72 per barrel.
Heating oil closed down 4 cents to $2.46,
unleaded gasoline closed down about 3 cents to $2.27 and
natural gas closed down 34 cents to $7.653 per million BTUs.
Short-term, the markets will be focused on Wednesday's U.S. Energy Information Agency petroleum status report. he said. Long-term, Dietz said, the market will "spend some time sorting out the implications of the [equity markets] sell-off for regional and global economic growth."
Dietz said the oil market has maintained its "offer" or sell tone, on the assumption that U.S. economic growth has slowed substantially in Q1 2008, which in turn will slow global economic growth and demand growth for both oil in emerging markets and gasoline in the U.S.
With the above in mind, Dietz said he still sees oil testing $75-$80 per barrel by early spring, with the U.S. national average for unleaded regular gasoline dropping about 20 cents to $2.75-$2.80 per gallon, as well.
Posted Jan 14th 2008 2:17PM by Joseph Lazzaro (RSS feed)
Filed under: Bad News, Consumer Experience, Commodities, Oil
The average price for gasoline in the U.S. has risen about 10 cents in the past three weeks, according to the Lundberg Survey,
The Associated Press reported Monday. The average price on Friday for unleaded regular was $3.07, mid-grade was $3.19 and premium, $3.30, the survey indicated.
Price driver: oilIndependent energy trader Jim Dietz said oil's persistently high price has created an unusual market condition: a lack of a pronounced dip in gasoline prices during the winter months.
"Typically, gasoline demand drops during the winter months, when travel and leisure driving decreases, and that usually causes the price to drop substantially. But it hasn't this winter so far. The high oil price has kept gasoline prices from falling much, with prices about 30% higher than they were a year ago," Dietz said.
Continue reading U.S.'s average unleaded gasoline price back over $3 per gallon
Posted Jan 11th 2008 5:19PM by Joseph Lazzaro (RSS feed)
Filed under: International Markets, China, Russia, Middle East, Venezuela, Mexico, Canada, Commodities, Oil
Oil Friday closed down $1.21 to $92.50 as concern that a U.S. recession would dampen both oil and gasoline demand again weighed on the markets.
The other major energy commodities also retreated.
Heating oil fell about 2 cents to $2.53,
unleaded gasoline declined about 4 cents to $2.32, and
natural gas fell about 7 cents to $8.20 per million BTUs.
Oil closed lower for the fourth time in five sessions amid a
broad retreat in the U.S. equity markets -- sell-offs that occurred despite positive news from U.S. Federal Reserve Ben Bernanke that the Fed is ready to cut key interest rates further and the
Bank of America Corporation (NYSE:
BAC)'s announced buy of beleaguered mortgage lender
Countrywide Financial Corporation (NYSE:
CFC) for $4 billion.
Continue reading Oil closes lower for 4th session in 5 on U.S. recession concerns
Posted Jan 10th 2008 10:34AM by Joseph Lazzaro (RSS feed)
Filed under: Other Issues, China, Oil
Oil fell $1.69 to $93.98 per barrel Thursday morning as traders re-calibrated their positions on sentiment that both oil and gasoline consumption growth will moderate during the expected U.S. economic slowdown.
Heating oil dropped four cents to $2.57, unleaded gasoline fell five cents to $2.38, and natural gas declined five cents to $8.15 per million BTUs.
Independent energy trader Jim Dietz told BloggingStocks Thursday that Goldman Sachs'
warning that the U.S. economy is "probably slipping into a recession" sent the worst fear possible into many oil bulls -- the fear of a changing dynamic in the oil markets.
The Goldman effect
"The Goldman report hit the market hard. Traders now sense that oil product demand, particularly gasoline demand, will moderate in the months ahead, which takes pressure off prices," Dietz said. "There's also a sense in the market now that the giddy oil market is over, that you can't count on making an easy pop [quick, 50-cent gain] each morning no matter where your long entry point is. Traders are getting much more careful about their entry points."
Continue reading Oil falls to $94 on U.S. recession concerns
Posted Jan 9th 2008 5:54PM by Joseph Lazzaro (RSS feed)
Filed under: International Markets, Forecasts, Other Issues, Oil
The World Bank entered the increasingly-divided debate on where oil prices are headed Wednesday by announcing in its Global Economic Prospects 2008 report that oil prices will fall gradually through 2009 to about $75, then fall toward $50 per barrel, in the longer-term.
"In the longer term, the oil market balance is expected to loosen and prices are projected to fall toward $50 per barrel," the World Bank wrote in its report. Oil closed Wednesday down 74 cents to $95.59.
The bank said that because OPEC has limited spare capacity and is holding down production, oil prices will likely remain quite elevated and volatile. However, high prices and increasing environmental concerns should continue to moderate growth in demand.
The Washington, D.C.-based international bank said it sees finely balanced markets in 2008-2009, then rising upstream investment in oil producing countries (OPEC and non-OPEC) should result in new supplies that exceed the growth in demand.
Continue reading World Bank says oil prices to fall gradually through 2009 to $75
Posted Jan 3rd 2008 12:54PM by Joseph Lazzaro (RSS feed)
Filed under: International Markets, Bad News, India, China, Commodities, Oil
Oil again traded over $100 Thursday, crossing the psychological barrier for the second consecutive day, boosted higher by cold weather in the Eastern U.S. and a below-consensus oil inventory report.
Moreover, a prolonged cold snap in the northeast combined with one more bad news item from any of the world's troubled oil producing regions, "will easily keep oil above $100 per barrel," an energy trader told BloggingStocks Thursday.
"If the cold weather breaks in the northeast, we may trade below $100 for a while, but if it doesn't, we should take out and stay above $100 soon," Jim Dietz, independent energy trader, told BloggingStocks Thursday. "There is significant psychological resistance at $100 and slightly above it at the all-time high, and we could see some proft-taking on the run-up past $95, but this market remains bullish." Dietz added that he is long with oil, heating oil and natural gas for both daily and monthly trades. Cold weather in the northeast is expected to last through at least Friday, with low temperatures near 15 degrees expected in New York for Thursday night.
Continue reading Oil again breaks through $100 after low inventories report
Posted Jan 2nd 2008 10:50AM by Joseph Lazzaro (RSS feed)
Filed under: Commodities, Oil
Oil surged above $98 per barrel Wednesday on expectations that U.S. oil stockpiles declined for a seventh consecutive week,
Bloomberg News reported Wednesday.
Oil rose $2.31 to $98.29 before pulling back slightly to $97.75, as traders attempted to gauge both U.S. demand and geopolitical factors affecting supply as the new year dawns.
Demand, Nigeria weighIndependent energy trader Jim Dietz told BloggingStocks Wednesday that unrest in Nigeria is also putting energy traders' moods in a bullish frame of mind.
"We've got the political situation in Nigeria popping up again where 12 people were killed by militants and a near-unanimous consensus that U.S. stock piles will be lower, so that's more than enough to send this oil market higher," Dietz said. "I know it's not what consumers want to hear at the start of a new year, but oil and heating oil prices are heading higher, at least for the short-term."
Heating oil gained about 4 cents to $2.69, while unleaded gasoline rose 5 cents to $2.53 in Wednesday morning trading. Natural gas gained 17 cents to $7.65 per million BTUs.
Continue reading Oil jumps above $98 on inventory concerns, Nigerian strife
Posted Dec 28th 2007 6:51PM by Joseph Lazzaro (RSS feed)
Filed under: Forecasts, Other Issues, India, China, Commodities, Oil
It's rarely easy to offer a contrarian point of view, particularly when a vital commodity is in such high demand as oil is today, but author John Cassidy attempts to do so in the
January 2008 issue of Portfolio magazine, "The Coming Oil Crash."In it Cassidy walks us through classic cyclical theory, i.e. what happens to a commodity when markets work as they should. Namely, that the recent tripling of oil prices is unleashing forces - - as it did the mid/late 1990s - - that will bring oil's price tumbling down in the next few years to $50 per barrel, perhaps even as low as $30 per barrel. (
Oil closed Friday up 32 cents to $96.74 per barrel.)
What are the factors that will prompt the dramatic slide? First, new technology which allows for more oil extraction per zone. Second, a global slowdown that could certainly cause oil prices to drop, and put the brakes on demand. Third, systematic shifts away from oil, due to price: oil's lofty price is encouraging countries to shift some energy requirements permanently to alternative energy sources and to use less oil. Fourth, new oil discoveries, combined with technology, will add large amounts of new oil supplies from such previously unfeasible zones in the Arctic Ocean, Brazil, and the Gulf of Mexico. Fifth, ethanol production in the U.S., although energy intensive, could curb demand for oil. Finally, quick ramp-up alternatives natural gas, nuclear power, and synthetic oil will displace an increasing amount of crude oil, putting further downward pressure on prices.
Continue reading With oil, it's cyclical theory vs. emerging market demand
Posted Dec 14th 2007 2:33PM by Joseph Lazzaro (RSS feed)
Filed under: International Markets, Forecasts, Exxon Mobil (XOM), Middle East, Chevron Corp (CVX), ConocoPhillips (COP), BP p.l.c. ADS (BP), Commodities, Oil
The
International Energy Agency Friday increased its forecast for 2008 daily global oil demand. IEA now expects daily global oil demand to increase by 2.1 million barrels to 87.8 million barrels, or an increase of 210,000 barrels per day from the group's previous estimate.
Further, the IEA also said the Organization for Economic Cooperation and Development members oil stockpiles in October 2007 fell to 52.6 days, or just below the 5-year average.
Energy pricesEnergy prices cast aside the news Friday morning, at least for the time-being:
oil fell 90 cents to $91.36 per barrel,
heating oil fell 1 cent to $2.62 per gallon and
unleaded gasoline dropped 4 cents to $2.37 per gallon.
"It's a slightly bearish report, but one that shouldn't move the markets too much," independent energy trader Jim Dietz told BloggingStocks Friday. "A 210,000 increase on a monthly revision isn't too bad, and the market expects these rough numbers to move around, so it's pretty much factored into the price." Dietz added that he remains flat and has no positions in oil, heating oil, gasoline or natural gas at this time.
Continue reading IEA increases 2008 global oil demand forecast
Posted Dec 11th 2007 4:16PM by Joseph Lazzaro (RSS feed)
Filed under: International Markets, Other Issues, India, China, Russia, Middle East, Venezuela, Mexico, Canada, Politics, Commodities, Oil
Discussion in financial and public policy circles appears to building regarding increased monitoring of energy markets, as well as, at minimum, inquiries into whether oil prices have been manipulated.
One group,
closetheenronloophole.com - - a coalition of oil dealers (the people who deliver heating oil in trucks, etc.) and other groups - - argues that certain unregulated energy trading platforms provide an environment for what the group calls "excessive speculation and energy price manipulation."
Capitol HillIn Washington, several lawmakers have requested inquiries of the energy markets. Among them are U.S. Senators
Maria Cantwell (D-Washingotn),
Dianne Feinstein (D-California), and
Ron Wyden (D-Oregon), who sent a letter to the chairmen of the Commodity Futures Trading Commission (CFTC) and the Federal Energy Regulatory Commission (FERC) giving them 45 days "to develop a plan to deliver effective oversight for energy markets and implement anti- manipulation provisions."
Continue reading Is the price of oil 'artificially' high?
< Previous Page | Next Page >
What Happened When Alex Kenjeev Paid His Student Loan in Cash
What's a Realistic Retirement Age?
The fastest-growing position -- or calculation -- in the oil market is that oil prices will double, reaching $200 by the end of 2008, 
Goldman Earnings Sink After Buffett Dividend
Johnson & Johnson's Income Falls 23%
Burberry Shares Leap on Sales Update
