China has raised interest rates to dampen inflation. The turmoil in Egypt has subsided a bit. In addition, we have record supplies of oil in storage facilities at Cushing, Oklahoma.

There have been no disruptions of oil flows in the Suez Canal and the pipeline that connects the Red Sea and the Mediterranean.

The price of March crude fell $1.13 per barrel to $86.35, as reported by Reuters. Brent crude fell $1.33 cents per barrel to $97.86. The premium of Brent over West Texas Intermediate (WTI) widened to $11.00 per barrel. What that shows is that demand in Europe, which uses Brent is strong, while demand here in the U.S. is weak.

Continue reading Oil Falls as China Raises Rates and Egypt Turmoil Subsides

Oil Falls as China Raises Rates and Egypt Turmoil Subsides originally appeared on BloggingStocks on Tue, 08 Feb 2011 10:30:00 EST. Please see our terms for use of feeds.

Continue reading BP Thrives as Oil Sector Gets Shaky

BP Thrives as Oil Sector Gets Shaky originally appeared on BloggingStocks on Thu, 06 May 2010 11:00:00 EST. Please see our terms for use of feeds.

	Deflation rolls on as Manhattan apartment sales see huge drop
	Looks like the Fed acted just in the nick of time
	Oil tops $50 on belief that Fed's actions will stimulate economy
	Rare good news for GM as Buick tops Lexus in quality

DailyFinance today: GM tops Lexus in quality, oil tops $50, did Fed act in nick of time, and Manhattan deflation rolls on originally appeared on BloggingStocks on Thu, 19 Mar 2009 18:20:00 EST. Please see our terms for use of feeds.

Oil moved above $46 yesterday. According to The New York Times, "One year after crude oil eclipsed $100 a barrel for the first time, the new year's trading began Friday with prices roughly half their year-earlier levels, and some believe oil could be headed even lower."

It is hard to make a bull case for oil, but not as hard as some imagine.

The stock market yesterday signaled that investors think that the economy is making a bottom and that perhaps the second half of the year will actually bring a recovery. If oil traders buy into that, they will begin to trade futures up. It is a fair assumption that an improving economy will require more crude.

Another, more obvious, reason is that OPEC will cut supply until prices go up. Some oil producers, both inside and outside OPEC, need the money from crude sales to keep their economies from sharp contraction. Russia and Venezuela are high on that list.

People watching the news think the war in Gaza will push prices up by interrupting demand. This is only true if Iran becomes involved and its territory is attacked. That is a long shot.

The large exporter that is very likely to see political turmoil that will cut its production is Nigeria, which is almost never mentioned in the debate over oil prices. Rebels cut supplies there several times last year. Only last week, a well-know militant was arrested by the government. That act could certainly lead to growing rebel activity to hurt the government. Hitting pipelines is not terribly hard. Defending thousands of miles of them is impossible.

The price of oil? Watch Nigeria.

Douglas A. McIntyre is an editor at 24/7 Wall St.

Will oil prices rise? Watch Nigeria originally appeared on BloggingStocks on Sat, 03 Jan 2009 17:40:00 EST. Please see our terms for use of feeds.

Since July 11, the price of oil has fallen 25% from $147 to $110. This has been terrible news for holders of energy stocks -- which have nosedived. But for people who need to fill up their tanks, prices at the pump remain relatively elevated -- having fallen about 10% (I remember paying $4.11 at the peak and now pay $3.69 a gallon).

Meanwhile, the New York Times reports that companies using oil in their products are keeping their prices high despite the oil price drop. These companies seem to be acting in unison to raise prices -- suggesting there is not enough competition in their markets.

Which companies are raising prices still? Those who believe they can get away with it as they try to recoup the lost profit resulting from the recent increase in the price of oil -- which is an important raw material in their products..

• Procter & Gamble (NYSE: PG) increased prices to retailers up 7% to 10% "for items made with ingredients derived from oil to 'recover costs already incurred,'" according to a Times interview with its spokesman.
• Dow Chemical (NYSE: DOW) raised prices by 50% for the oil-based raw materials that go into diapers and polystyrene. It "does not want to give up those increases until the company recovers its old profit margins since '[its] prices continue to lag [its] cost increases,''" according to a Times interview with its spokesman.
• Goodyear Tire and Rubber (NYSE: GT) has raised tire prices by 15% and is "still making synthetic rubber tires from oil-based feed stocks bought at relatively high prices more than three months ago [and it] 'could not consider canceling the price increase until it knew whether oil prices were going to stay down,'" according to a Times interview with its spokesman.

Continue reading With oil down 25%, why do gas and other prices stay so high?

With oil down 25%, why do gas and other prices stay so high? originally appeared on BloggingStocks on Wed, 03 Sep 2008 08:40:00 EST. Please see our terms for use of feeds.

Back in April 2005, Eric Wahlgren of Business Week, wrote about the then unthinkable prospect of oil hitting $100 a barrel. In that article I suggested that Toyota Motor Corporation (ADR) (NYSE: TM) might benefit if oil prices rose. That's because it seemed to be taking the lead in making hybrid vehicles. Even though its Prius only accounted for a small portion of its sales, I thought it would keep pushing ahead of its U.S. competitors due to its higher quality, higher prices, and lower costs.

Today, according to The Associated Press, Toyota surpassed Ford Motor Company (NYSE: F) as the U.S.'s second largest vehicle manufacturer. Ford has been in second place since 1931. And the global sales tallies are yet to be completed, however, The Associated Press reports that Toyota -- which estimates that it made 9.51 million vehicles in 2007 will surpass General Motors Corporation (NYSE: GM)'s total of 9.284 million vehicles for 2007.

Since April 26, 2005 when the Wahlgren article was published, Toyota stock has risen 47% while General Motors stock is down 11% and Ford has fallen 35%. Concerns about Toyota overtaking U.S. auto manufacturers' global lead have persisted for about 25 years. Despite occasional efforts by GM and Ford to stop Toyota's inexorable advance, Toyota is now the world leader.

And its prescient response to $100 a barrel oil is helping Toyota to extend its lead.

Peter Cohan is president of Peter S. Cohan & Associates. He also teaches management at Babson College and edits The Cohan Letter. He has no financial interest in the securities mentioned.

Does $100 a barrel oil help Toyota surpass GM as the world's auto leader? originally appeared on BloggingStocks on Thu, 03 Jan 2008 18:42:00 EST. Please see our terms for use of feeds.

Multi-billion dollar oil lease "error" by Dept of Interior deliberate? originally appeared on BloggingStocks on Fri, 04 Aug 2006 09:31:00 EST. Please see our terms for use of feeds.