June 27, 2008
NEW YORK -- Oil futures climbed briefly to a new record above $142 a barrel Friday on expectations that the weakening dollar, a major factor in crude's stratospheric rise, will extend its decline and add to oil's appeal, according to the Associated Press.
Retail gas prices inched lower overnight, but are likely to resume their own trek into record territory now that oil futures have broken out of the trading range where they had been for nearly 3 weeks.
Posted by Peter C. T. Elsworth 
at 9:51 AM | Permalink
June 26, 2008
NEW YORK -- Oil futures shot above $140 Thursday after OPEC's president said crude prices could rise well above $150 a barrel this year and Libya said it may cut oil production, according to the Associated Press.
The advance raised the likelihood that gasoline prices would also extend their march higher, and that prices of goods and services throughout the economy would also keep rising.
Light, sweet crude crossed the $140 level minutes before the New York Mercantile Exchange closed Thursday, then retreated slightly to settle up $5.09 at a record $139.64. In after-hours electronic trading, prices rose as high as a record $140.39.
Posted by Peter C. T. Elsworth at 5:15 PM | Permalink
NEW YORK -- Oil futures shot up to nearly $139 a barrel Thursday after OPEC's president said oil prices could rise well above $150 a barrel this year and Libya said it may cut oil production, according to the Associated Press.
Light, sweet crude for August delivery rose as high as $138.95 a barrel shortly after the New York Mercantile Exchange opened before retreating some to trade up $3.59 at $138.14.
Posted by Peter C. T. Elsworth at 12:48 PM | Permalink
June 23, 2008
JIDDA, Saudi Arabia — A hastily convened global energy summit meeting led by Saudi Arabia ended largely in disagreement on Sunday, with only a modest pledge of increased production by the Saudis and no resolution on what other practical steps should be taken to ease the crisis over soaring oil prices, according to The New York Times.
On Monday, the global oil market shrugged off the news, pushing up prices and oil was up $1.59, to $136.95 a barrel in New York.
Posted by Peter C. T. Elsworth at 4:44 PM | Permalink
June 16, 2008
NEW YORK -- Crude oil futures hit a record near $140 a barrel Monday as investors shrugged off Saudi Arabia's promise to boost production and instead focused on a weaker dollar. Retail gas prices rose to a record $4.08 a gallon, according to the Associated Press.
Light, sweet crude for July delivery soared to a trading record of $139.89 before retreating to trade up $3.33 at $138.19 a barrel on the New York Mercantile Exchange.
Posted by Peter C. T. Elsworth at 10:18 AM | Permalink
June 11, 2008
NEW YORK -- Oil prices soared Wednesday as the dollar fell and the Energy Department issued a mixed report on the nation's fuel inventories. At the pump, gas prices rose to a new record over $4.05 a gallon, according to the Associated Press.
The department's Energy Information Administration said oil inventories fell more than expected last week, and that gave oil a kick upward. But prices eased back to their pre-report levels as traders read further into the EIA's release and found that supplies of fuel such as gasoline and heating oil rose and demand fell.
Light, sweet crude spiked up nearly $5.50 to $136.80 a barrel soon after the report's release, then retreated to trade up $3.06 at $134.37 a barrel on the New York Mercantile Exchange.
Posted by Peter C. T. Elsworth at 12:10 PM | Permalink
VIENNA, Austria -- Oil prices rebounded as the dollar weakened against major currencies Wednesday, but investors braced for a volatile trading day ahead of a report on U.S. crude inventories, according to the Associated Press.
Gas prices, meanwhile, advanced further into record territory Wednesday, reaching a new record national average of $4.052, according to a survey of stations by AAA and the Oil Price Information Service.
Light, sweet crude for July delivery was up $1.91 at $133.22 a barrel in electronic trading on the New York Mercantile Exchange by noon in Europe.
Posted by Peter C. T. Elsworth at 9:33 AM | Permalink
June 9, 2008
RIYADH, Saudi Arabia -- Saudi Arabia will call for a summit between oil producing countries and consumer states to discuss soaring energy prices, Information and Culture Minister Iyad Madani said Monday, according to the Associated Press.
The kingdom will also work with OPEC to "guarantee the availability of oil supplies now and in the future," the minister said following the weekly Cabinet meeting, held in the seaport city of Jiddah.
The Saudi announcement comes just three days after the biggest single-day price leap ever, when oil surged more than $11 to surpass $139 per barrel.
Posted by Peter C. T. Elsworth at 1:38 PM | Permalink
Oil prices fell Monday, retreating from a record surge late last week, and traders said the market would remain choppy amid jitters about supplies, growing global demand and a weak U.S. dollar, according to the Associated Press.
The average price for a gallon of gasoline in the United States hit $4 for the first time ever Sunday, according to AAA and the Oil Price Information Service. Record prices threaten to shake consumers who are spending and increasingly large share of paychecks on transportation.
By the afternoon in Europe, light, sweet crude for July delivery was down $1.99 to $135.55 a barrel. The contract was volatile, trading between $135.27 and $138.25 so far in the session.
Posted by Peter C. T. Elsworth at 10:23 AM | Permalink
June 6, 2008
Oil prices had their biggest gains ever on Friday, jumping nearly $11 to a new record above $138 a barrel, after a senior Israeli politician raised the specter of an attack on Iran and the dollar fell sharply against the euro, according to The New York Times.
The unprecedented gains on Friday capped a second day of strong gains on energy markets, and fueled suspicions that commodities might be caught in a speculative bubble.
Oil futures surged $10.75, or 8 percent, to $138.54 a barrel on the New York Mercantile Exchange. The record gain followed a jump of 5.5 percent on Thursday, bringing total two-day gains to $16 a barrel.
Posted by Peter C. T. Elsworth at 3:39 PM | Permalink
NEW YORK -- Oil prices shot up nearly $7 a barrel Friday, extending big gains from the previous day and racing toward an all-time high after a Morgan Stanley analyst predicted prices could hit $150 by the Fourth of July, according to the Associated Press.
A further weakening of the dollar helped keep prices high by enticing overseas buyers armed with stronger currencies and other investors looking for a hedge against the greenback.
Light, sweet crude for July delivery jumped as much as $6.96 to $134.75 on the New York Mercantile Exchange, before easing slightly to trade at $134.40, up $6.61.
Posted by Peter C. T. Elsworth at 1:03 PM | Permalink
May 29, 2008
NEW YORK -- Oil prices fell sharply Thursday after the Energy Department reported unexpected declines in crude oil and gasoline supplies last week, but said the drop in crude inventories was due to temporary delays in unloading oil tankers along the Gulf Coast. according to the Associated Press.
A stronger dollar and concerns about gas demand also weighed on prices.
Retail gas prices, meanwhile, rose to a new record above $3.95 a gallon.
Light, sweet crude for July delivery fell $4.23 to $126.80 a barrel on the New York Mercantile Exchange, their lowest level since early last week.
Posted by Peter C. T. Elsworth at 3:02 PM | Permalink
May 22, 2008
Sounds incredible, doesn’t it? But given the way gas prices are ratcheting up on an almost daily basis, it is not out of the realm of possibility. Not with the way oil prices are going.
For anyone who has worked in the oil patch, as I did with Petroleum Intelligence Weekly and Platt’s Oilgram in New York in the early 1980s followed by a couple of years helping to set up the energy desk at Reuters, the current surge in oil prices is simply incredible.
And the ramifications are enormous.
But let’s start with gas prices. The national average price for a gallon of regular gasoline is now $3.83 a gallon, according to the Associated Press.
Really? Not around here. On my way down to Westerly yesterday, I saw $3.99 a gallon. Add on that 9/10th of a cent the gas companies love to slide in those tiny numbers – forgive me if I repeat myself – and that’s $4.00 a gallon.
Just weeks ago, that number was seen as a possibility sometime this year. Well, we’re at $4.00 a gallon now and I don’t see any end in sight.
Just look at the crude oil market. At the beginning of the week it was flirting with $130 a barrel; this week we’ve hit over $135 a barrel before coming down to about $132 today. What’s going on?
It’s partly the new demand from developing economies such as China and India; and it’s partly speculation by commodity brokers who are always attracted to prices that are going up.
Now the International Energy Agency (IEA) reports that its previous projections of global crude oil supplies may be off by many millions of barrels a day. According to a front page story in today’s Wall Street Journal, both the agency and the U.S. Energy Department are worried about supply not keeping up with demand.
“The oil investments required may be much, much higher than what people assume. This is a dangerous situation,” the paper quotes IEA chief economist Fatih Birol as saying.
The paper cites all sorts of problems in the global oil patch, including the fighting in Iraq and sanctions on Iran hindering investments in both nations, political turmoil in Nigerian and Venezuela and production slumping in a number of areas.
Earlier this month, Birol told the German magazine Internationale Politik: “We see a sharp decline in production from the existing oil fields, especially in the North Sea, the USA and many non-OPEC countries.”
"Exactly 12.5 million barrels a day are still missing, about 15 % of the global oil demand. This gap means that we could face a supply shortage and very high prices during the next (few) years."
Gulp!
- Peter C.T. Elsworth
Posted by Peter C. T. Elsworth at 3:15 PM | Permalink
Oil prices rose above $135 a barrel for the first time Thursday, with supply worries, global demand and an ever weakening U.S dollar driving crude futures up, according to the Associated Press.
Also on Thursday, The Wall Street Journal reported that the world's top energy watchdog is preparing a sharp downward revision of its oil-supply forecast.
Posted by Peter C. T. Elsworth at 10:16 AM | Permalink
May 19, 2008
NEW YORK -- Oil futures crept higher Monday while retail gas and diesel prices reached new records, adding to the pressure on drivers planning road trips for the coming holiday weekend, according to the Associated Press.
Americans are now paying an average of $3.79 for a gallon of regular gas, according to a survey by AAA and the Oil Price Information Service. Diesel now costs $4.52 a gallon.
Posted by Peter C. T. Elsworth at 10:41 AM | Permalink
May 16, 2008
Oil prices soared more than $3 a barrel, surpassing $127 for the first time Friday and putting more pressure on already lofty gasoline and diesel prices ahead of the summer driving season in the northern hemisphere, according to the Associated Press.
Also pushing oil prices up were speculation that China's demand for diesel needed to fuel its power plants would rise due to reconstruction efforts after this week's earthquakes and an upward revision of an oil price forecast by investment bank Goldman Sachs from $107 to $141 a barrel for the second half of the year.
Light, sweet crude for June delivery on the New York Mercantile Exchange rose as high as $127.82 a barrel in electronic trading by afternoon in Europe, before retreating to $127.55, up from Thursday's close of $124.12.
Posted by Peter C. T. Elsworth at 10:32 AM | Permalink
May 13, 2008
NEW YORK -- Oil prices shot to a new record near $127 a barrel Tuesday on concerns that Iran may consider cutting crude oil production, according to the Associated Press.
Gas prices, meanwhile, rose to a new record over $3.73 a gallon Tuesday, and their advance shows little sign of slowing with Memorial Day weekend, the traditional start of the summer driving season, just 10 days away.
Posted by Peter C. T. Elsworth at 3:09 PM | Permalink
May 9, 2008
NEW YORK -- Oil rose above $126 a barrel for the first time Friday, bringing its advance this week to nearly $10, as investors questioned whether a possible confrontation between the U.S. and Venezuela could cut exports from the OPEC member, according to the Associated Press.
Gas prices, meanwhile, rose above an average $3.67 a gallon at the pump, following oil's recent path higher.
Posted by Peter C. T. Elsworth at 2:02 PM | Permalink
Oil prices neared $126 per barrel Friday on the eve of the U.S. driving season as a weakening U.S. dollar drove investors to snap up commodities, according to the Associated Press.
Light, sweet crude for June delivery rose to a record $125.98 a barrel in electronic trading on the New York Mercantile Exchange near midday before falling back to $125.75, up $2.06 on the day, by the afternoon in Europe.
On Thursday, the contract rose to a record close of $123.69 a barrel.
Posted by Peter C. T. Elsworth at 9:43 AM | Permalink
May 6, 2008
VIENNA, Austria -- Oil futures rose to an all-time high near $121 a barrel Tuesday with new concerns about a threat to supply and a weaker dollar, according to the Associated Press.
The surge in oil prices was also fueled by hopes that the U.S. economy will be spared a sharp downturn after the release of data Monday showing an unexpected expansion in the U.S. service sector in April, analysts said.
Posted by Peter C. T. Elsworth at 9:55 AM | Permalink
May 5, 2008
NEW YORK -- Oil futures surged to a new record over $120 a barrel Monday, raising concerns about higher prices for gasoline and goods and services throughout the economy, according to the Associated Press.
Retail gas prices fell more than a cent over the weekend, but oil's advance increased the likelihood that pump prices would resume their climb.
Posted by Peter C. T. Elsworth at 3:46 PM | Permalink
April 25, 2008
NEW YORK -- Oil prices rose sharply Friday as investors refocused their attention on supply concerns - buying on a pipeline attack in Nigeria and a looming refinery strike in Scotland - and ignored the strengthening dollar, according to the Associated Press.
Retail gas prices as expected rose further into record territory, nearing $3.60 a gallon.
Light, sweet crude for June delivery rose $3 to $119.06 a barrel on the New York Mercantile Exchange.
Posted by Peter C. T. Elsworth at 11:20 AM | Permalink
April 23, 2008
LONDON — Record-breaking oil prices fell on Wednesday after spiking near 120 dollars per barrel, as international concern mounted over soaring energy costs and the world's top producer appealed for calm, according to Agence France Presse.
Traders were also on tenterhooks ahead of the weekly US energy inventories report, which has the potential to push prices beyond the psychological barrier of 120 dollars.
New York's main oil futures contract, light sweet crude for delivery in June, shed 33 cents to 117.74 dollars a barrel. The May contract had struck a record high 119.90 before expiring Tuesday.
Posted by Peter C. T. Elsworth at 12:29 PM | Permalink
April 22, 2008
LONDON - Oil rose to a record high above $118 on Tuesday, boosted by a jump in oil demand last month from China, the world's second biggest energy consumer, and worries about supply from key producers Russia and Nigeria, according to Reuters News Agency.
Posted by Peter C. T. Elsworth at 9:31 AM | Permalink
April 21, 2008
Oil prices spiked to a record above $117 a barrel on Monday after a Japanese oil tanker was attacked off the east coast of Yemen, according to the Associated Press.
The 150,000-ton tanker Takayama was attacked about 270 miles off the Yemen coast in the Gulf of Aden while it was heading for Saudi Arabia, its Japanese operator, Nippon Yusen K.K., said in a statement posted on its Web site.
Posted by Peter C. T. Elsworth at 10:10 AM | Permalink
April 16, 2008
NEW YORK -- Crude futures rose past $115 Wednesday for the first time, propelled by concerns about how much gas will be available during the peak summer months, according to the Associated Press.
In its weekly inventory report, the Energy Department's Energy Information Administration said inventories of gas fell by 5.5 million barrels, much more than analysts surveyed by Dow Jones Newswires had expected.
The report also said crude inventories fell by 2.3 million barrels last week, compared to the gain analysts expected.
But the market was torn and traded sharply lower at times by data deeper in the report showing that the country's appetite for increasingly expensive gas is declining. Gas demand has fallen an average of 1 percent each of the last four weeks compared to the same period last year. Demand usually rises this time of year."
May gasoline futures rose to more than $2.90 a gallon.
Posted by Peter C. T. Elsworth at 2:59 PM | Permalink
April 15, 2008
NEW YORK -- Crude oil prices rose to within a penny of $114 a barrel Tuesday, setting a new record as concerns mounted about global supplies, according to the Associated Press.
U.S. retail gasoline and diesel prices also struck new highs.
Light, sweet crude for May delivery rose as high as $113.99 a barrel on the New York Mercantile Exchange before backing off to $113.75, up $1.99 from Monday's record settlement price of $111.76 a barrel.
Meanwhile, retail gasoline prices rose to a new average national record of $3.386, according to AAA and the Oil Price Information Service. Prices were highest in California, where mid-range and higher grades are now averaging more than $4 a gallon.
Posted by Peter C. T. Elsworth at 2:56 PM | Permalink
VIENNA, Austria -- Oil prices set yet another intraday trading record Tuesday, surging close to $114 a barrel as the U.S. dollar fell and crude oil shipments along one U.S. pipeline were said to be moving below capacity, according to the Associated Press.
Light, sweet crude for May delivery on the New York Mercantile Exchange traded as high as $113.66 a barrel by afternoon in Europe. That was $1.45 above the trading record set last week and $1.90 above Monday's record settlement close of $111.76 a barrel.
Posted by Peter C. T. Elsworth at 10:02 AM | Permalink
April 14, 2008
Oil prices rose Monday after global financial leaders expressed concerns about volatility in major currencies and the dollar slipped against the euro, according to the Associated Press.
Light, sweet crude for May delivery on the New York Mercantile Exchange rose $1.09 to $111.23 a barrel in electronic trading by midday in Europe. The contract rose 3 cents to settle at $110.14 a barrel Friday.
Posted by Peter C. T. Elsworth at 9:36 AM | Permalink
April 9, 2008
NEW YORK -- The upward trend in energy prices showed no sign of abating Wednesday as gasoline set yet another record at the pump and crude oil topped $112 a barrel for the first time in the futures market, according to the Associated Press.
The national average price of a gallon of regular unleaded gas rose 1.2 cents to a record $3.343 a gallon, according to a survey of gas stations by AAA and the Oil Price Information Service.
With the peak summer driving season still to come and gas following crude higher, the fuel may well reach the retail price of $4 a gallon that the Energy Department has been forecasting.
Posted by Peter C. T. Elsworth at 1:52 PM | Permalink
March 27, 2008
VIENNA, Austria -- Oil prices rose by more than a dollar Thursday, as the bombing of a key Iraqi pipeline extended a buying spree spurred by an anemic dollar and lower U.S. fuel inventories, according to the Associated Press.
Crude prices, which already spiked by nearly $5 on Thursday, were propelled higher by the second bombing in a week in Basra, where Iraqi security forces have been clashing with Shiite militia fighters.
Posted by Peter C. T. Elsworth at 9:46 AM | Permalink
March 21, 2008
RIYADH, Saudi Arabia (AP) -- High oil prices paining U.S. consumers is a key topic of Vice President Dick Cheney's talks Friday with Saudi King Abdullah, yet it's unclear whether Cheney will ask the Saudis to increase production to bring down prices at the pump, according to the Associated Press.
Cheney's advisers cautioned in advance of Friday's talks that oil was just one item on a long list of discussion topics which include Iran, Syria, Lebanon, protecting infrastructure against terror attacks and the vice president's visits this week to Iraq and Afghanistan.
Posted by Peter C. T. Elsworth at 2:23 PM | Permalink
March 20, 2008
NEW YORK -- Oil prices extended their declines Thursday, sliding below $100 a barrel at times as concerns about the economy and demand for oil grew and the dollar strengthened, according to the Associated Press.
Retail gas prices, meanwhile, fell further below their recent records, while diesel rose to a new record above $4 a gallon.
Light, sweet crude for May delivery dropped $1.76 to $100.78 a barrel on the New York Mercantile Exchange Thursday after sliding as low as $98.65 earlier. It was the first dip by a front-month oil contract under $100 since March 5.
Posted by Peter C. T. Elsworth at 12:35 PM | Permalink
March 17, 2008
NEW YORK -- Oil prices fell sharply Monday, pulling back at least temporarily from record levels as investors feared that the financial crisis that forced the sale of Bear Stearns Cos. is a sign of deep economic troubles, according to the Associated Press.
Crude's plunge came even as diesel prices rose to a new record above $4 a gallon, and gas prices remained high.
Light, sweet crude for April delivery fell $3.08 to $107.13 a barrel in morning trading on the New York Mercantile Exchange. Overnight, prices rose as high as $111.80 before plunging as low as $105.11 in early morning Nymex trading.
Posted by Peter C. T. Elsworth at 12:07 PM | Permalink
VIENNA, Austria -- Oil prices jumped to an all-time trading high of almost $112 a barrel Monday as the tumbling U.S. dollar and plunging stock markets prompted investors to seek shelter in commodities, according to the Associated Press.
Posted by Peter C. T. Elsworth at 9:49 AM | Permalink
March 13, 2008
Oil prices on Thursday hit a record high above $110 a barrel as investors fled the tumbling dollar that fell to new lows against the euro and a 12-year low versus the yen, according to the Associated Press.
Light, sweet crude for April delivery rose 78 cents to reach $110.70 in early afternoon European electronic trading on the New York Mercantile Exchange. On Wednesday, it had set a record trading high of $110.20 a barrel.
Posted by Peter C. T. Elsworth at 9:39 AM | Permalink
March 11, 2008
NEW YORK -- The cost of filling up your gas tank has hit a new record. Average prices at the pump are at a new high of almost $3.23 a gallon, according to the Associated Press.
According to AAA and the Oil Price Information Service, the average national price of a gallon of gas rose half a cent overnight to $3.2272. That is slightly higher than the previous record of $3.2265 a gallon, set last May.
Gas prices are following crude oil futures into record territory. Oil prices are surging as the falling dollar attracts investors who see crude futures as a hedge against inflation and the weak dollar.
Light, sweet crude for April delivery briefly climbed to a new record price of $109.72 a barrel on the New York Mercantile Exchange Tuesday morning.
Posted by Peter C. T. Elsworth at 9:56 AM | Permalink
March 7, 2008
NEW YORK -- Oil prices jumped to a new record above $106 Friday but extended their recent pattern of choppy trading after a weak jobs report convinced many traders that the Federal Reserve's interest rate-cutting campaign will continue, according to the Associated Press.
Employers cut 63,000 jobs in February, the biggest drop in five years, the Labor Department said Friday. Investors can react to such news in one of two ways: by selling on the prospect that the economy, and demand for oil, is cooling, or by buying on a conviction that bad economic data makes it more likely the Fed will cut rates.
Posted by Peter C. T. Elsworth at 1:27 PM | Permalink
February 29, 2008
NEW YORK -- Oil futures retreated from a new overnight record above $103 as the dollar gained strength and Turkish forces withdrew from northern Iraq, removing two of the reasons underpinning crude's dramatic 19 percent rise from earlier this month, according to the Associated Press.
But many analysts believe the declines may be temporary, and that oil is poised to rise above $103.76 a barrel. That's the price many believe to be oil's all-time high on an inflation-adjusted basis, set in early 1980 during the Iranian hostage crisis.
Posted by Peter C. T. Elsworth at 12:52 PM | Permalink
February 27, 2008
VIENNA, Austria -- Oil prices briefly rose to a new intraday high above $102 a barrel Wednesday as a slide in the U.S. dollar prompted investors to pump more money into energy futures as a hedge against inflation, according to the Associated Press.
Light, sweet crude for April delivery on the New York Mercantile Exchange spiked as high as $102.08 a barrel in electronic trading before slipping back. It was up 13 cents at $100.99 a barrel by afternoon in Europe.
Posted by Peter C. T. Elsworth at 10:08 AM | Permalink
February 20, 2008
NEW YORK -- Oil futures rallied again Wednesday, pushing briefly past $101 a barrel after the Federal Reserve lowered its forecast for economic growth this year, convincing energy investors that the central bank will slash interest rates further, according to the Associated Press.
At the pump, meanwhile, gas prices rose another 2 cents overnight.
The Fed said damage from the housing slump and problems in the credit markets will slow economic growth to between 1.3 percent and 2 percent this year, down from a previous forecast for GDP growth of between 1.8 percent and 2.5 percent.
The contract for March delivery of light sweet crude rose 73 cents to settle at a record $100.74 on the New York Mercantile Exchange after earlier rising as high as $101.32, a new trading record. On Tuesday, the contract jumped $4.51 a barrel
Posted by Peter C. T. Elsworth at 5:26 PM | Permalink
February 18, 2008
Crude oil prices have edged up almost $10 a barrel over the last week, prompted by a number of factors. They are now hovering north of $95 a barrel.
Last week it was threats from Venezuelan Supremo Hugo Chavez to cut off supplies of oil to the United States. Today it's reports that the Organization of Petroleum Exporting Countries, which produces about 40 percent of the world's oil, is mulling a production cut.
The mercurial Chavez has since relented on his threat which was to a large extent hollow due to the limited market for Venezuelan oil.
That nation may be the fourth largest supplier of crude oil to the U.S. (about 1.2 million barrels a day last year) after Canada, Saudi Arabia and Mexico, but its oil is heavy, sulfur-rich muck which has to treated by specialized refineries mostly on the U.S. Gulf Coast. Indeed, the market for over half of Venezuela's exported crude IS the United States.
Now OPEC is making noises about possible cuts in production. The organization’s power may be a fraction of what it was in the 1970s and early 1980s, but it still carries a punch. Back then, it literally ruled the global crude oil market, actually setting prices for the then dominant crude – Saudi Arabian Light.
Those days are gone, supplanted by the spot market and the futures exchanges in London and New York, but OPEC retains enough internal discipline to maintain a strong influence on the market.
Since it came into its own in 1973, OPEC has traditionally straddled the line between getting as much for its oil without setting off dire economic consequences in the industrialized economies. It continues that tightrope act, seeking to balance its production (and therefore prices) with the health of the global economy.
The organization recently intimated that it would cut production if global supplies continued to grow. And that fit in with reports that see the U.S. economy sputtering and going into recession - if we aren't there already. Certainly, a slowdown in economic activity would lead to reduced oil demand around the world.
But only last week U.S. industrial production in Januaryt was reported to have risen in line with expectations.
In short, there are fewer signs than usual of what the future brings. Certainly the lack of any clear outcome from, or plan to engage, Islamic terrorism – the war in Iraq (pace Bush’s surge) and the growing unrest in Afghanistan and Pakistan – makes these very jittery times.
That jitteriness is shown in the quick, neurotic price moves following any reports regarding the supply and price of crude oil, the lifeblood of the industrial world.
In short, reality is anyone's guess right now - and that's the problem!
- Peter C. T. Elsworth
Posted by Peter C. T. Elsworth at 10:20 AM | Permalink
February 5, 2008
VIENNA, Austria -- Oil prices slumped Tuesday, dragged down by persistent concerns about the U.S. economy and global stock market declines, according to the Associated Press.
Energy investors often view stocks as a proxy for economic growth, and in some recent sessions, movements in the oil market have closely followed that of global equities.
Light, sweet crude for March delivery on the New York Mercantile Exchange lost $1.41 to $88.61 a barrel in electronic trading by aftenoon in Europe.
Posted by Peter C. T. Elsworth at 9:20 AM | Permalink
February 1, 2008
VIENNA, Austria -- Shrugging off calls to pump more oil, OPEC ministers said Friday that output levels will not be increased out of fear that a softening global economy will translate into weakened demand, according to the Associated Press.
Any decision by the Organization of Petroleum Exporting Countries to produce more would have acted as a shot in the arm for countries struggling with weak growth, the fallout from the U.S. subprime crisis and negative economic factors.
"In view of the current situation, coupled with the projected economic slowdown, the conference decided that current production is sufficient to meet ... demand for the first quarter of the year," an OPEC statement read.
Posted by Peter C. T. Elsworth at 10:13 AM | Permalink
Oil prices were slightly lower Friday but showed little reaction to news that OPEC would maintain current output levels, as worries of a possible U.S. recession weighed on crude futures, according to the Associated Press.
Claims for unemployment benefits in the United States jumped by 69,000 last week, the Labor Department said, more than three times what economists expected.
Light, sweet crude for March delivery lost 39 cents to $91.36 a barrel in electronic trading on the New York Mercantile Exchange by midday in Europe.
Posted by Peter C. T. Elsworth at 10:08 AM | Permalink
January 28, 2008
NEW YORK -- Oil futures fell below $90 a barrel Monday, extending their recent streak of back and forth trading as recession fears reasserted themselves, according to the Associated Press.
Posted by Peter C. T. Elsworth at 10:57 AM | Permalink
January 25, 2008
Oil futures extended recent gains Friday, pushing crude back above $90 a barrel after U.S. government leaders agreed to a stimulus plan in an effort to avert a major slowdown in the world's largest economy, according to the Associated Press.
Light, sweet crude for March delivery on the New York Mercantile Exchange rose $1.29 to $90.70 a barrel in electronic trading by the afternoon in Europe. The contract gained $2.42 to settle at $89.41 a barrel on Thursday, the largest rise in over three weeks.
Posted by Peter C. T. Elsworth at 9:58 AM | Permalink
January 23, 2008
Oil futures fell Wednesday, extending overnight declines as many investors indicated they doubt that the U.S. Federal Reserve's surprise cut in its key interest rates will stave off a serious economic slowdown that would dampen demand, according to the Associated Press.
Light, sweet crude for March delivery lost $1.71 to $87.50 a barrel in electronic trading on the New York Mercantile Exchange by mid-afternoon in Europe.
Posted by Peter C. T. Elsworth at 10:11 AM | Permalink
January 21, 2008
SINGAPORE -- Oil prices fell Monday in Asia as concern over the U.S. economy drove down regional stock markets and outweighed concern that OPEC will resist pressure to raise crude production levels, according to the Associated Press.
Oil prices have now retreated more than $10 from a record above $100 a barrel early this year on worries a flagging U.S. economy would dampen fuel demand. Prices had gained Friday on hopes that President George W. Bush's economic stimulus plan would work.
Light, sweet crude for February delivery fell 97 cents to $89.60 a barrel in Asian electronic trading on the New York Mercantile Exchange by late afternoon in Singapore.
Posted by Peter C. T. Elsworth at 11:23 AM | Permalink
January 18, 2008
Oil prices rose Friday following the lead of higher stock prices in Europe as traders bought crude contracts ahead of the holiday weekend in the United States, according to the Associated Press.
Light, sweet crude for February delivery was up 68 cents to $90.81 a barrel in electronic trading on the New York Mercantile Exchange by midafternoon in Europe. It had fallen below $90 in earlier trading on worries that weakness in the U.S. economy could curb demand for oil.
Posted by Peter C. T. Elsworth at 9:55 AM | Permalink
January 17, 2008
NEW YORK -- Oil futures fluctuated Thursday after Federal Reserve Chairman Ben Bernanke said he expects slower growth in 2008, but no recession, according to the Associated Press.
Bernanke's comments added to the negative economic sentiment that has been the market's dominant driver in recent days, pushing prices down nearly $10 from their record over $100 a barrel two weeks ago. Despite Bernanke's comments, many investors fear a recession is imminent.
Posted by Peter C. T. Elsworth at 11:45 AM | Permalink
January 11, 2008
NEW YORK (AP) -- Oil prices extended their slide on a growing sentiment that the United States might be headed for a recession that would depress demand for oil, according to the Associated Press.
Energy investors remained focused on recent government jobs reports that suggest the economy is struggling to make headway against the challenges posed by a troubled housing market and high oil prices.
Light, sweet crude for February delivery slipped 29 cents to $93.42 a barrel on the New York Mercantile Exchange.
Posted by Peter C. T. Elsworth at 11:16 AM | Permalink
January 9, 2008
VIENNA, Austria -- Oil prices rose Wednesday amid expectations a U.S. government report will show crude oil stockpiles fell last week, according to the Associated Press.
Prices were also supported by fears of further violence in Nigeria, the world's eighth-largest oil producer.
Analysts surveyed by Dow Jones Newswires predict crude inventories likely fell 800,000 barrels last week, while supplies of distillates, which include heating oil, likely fell 300,000 barrels. The U.S. Energy Department's Energy Information Administration will release the report later Wednesday.
"That would be the eighth consecutive week of crude oil stock draws and U.S. crude oil inventories are already below the five year average for this time of the year," said Victor Shum, an energy analyst with Purvin & Gertz in Singapore.
Light, sweet crude for February delivery added 24 cents to $96.57 a barrel by afternoon in Europe in electronic trading on the New York Mercantile Exchange. The contract rose $1.24 to settle at $96.33 a barrel on Tuesday.
Posted by Peter C. T. Elsworth at 9:53 AM | Permalink
January 7, 2008
VIENNA, Austria -- Oil prices fell Monday as a report of growing unemployment in the United States raised concerns of an economic downturn that could curb oil demand, according to the Associated Press.
The U.S. Labor Department said the unemployment rate jumped to 5 percent in December - its highest level in more than two years - from 4.7 percent in November. Analysts had expected December unemployment at 4.8 percent.
Light, sweet crude for February delivery dropped 52 cents to $97.39 a barrel by midday in European electronic trading on the New York Mercantile Exchange. The contract fell $1.27 to settle at $97.91 a barrel on Friday.
Posted by Peter C. T. Elsworth at 10:21 AM | Permalink
January 4, 2008
NEW YORK -- Oil futures retreated further from their record levels above $100 a barrel Friday after the government reported lower-than-expected job growth in December, adding to fears of a recession that could crimp demand for oil, according to the Associated Press.
Gas prices, meanwhile, rose 2.2 cents a gallon overnight, following crude's recent rally.
Light, sweet crude for February delivery fell $1.57 to $97.61 a barrel on the New York Mercantile Exchange Friday. Gas prices, meanwhile, jumped overnight to a national average of $3.074 a gallon, according to AAA and the Oil Price Information Service.
Posted by Peter C. T. Elsworth at 11:25 AM | Permalink
December 17, 2007
VIENNA, Austria -- Oil prices fell Monday as concerns about the U.S. economy overrode expectations of increased fuel demand from a winter storm pummeling the United States with snow, sleet and freezing rain, according to the Associated Press.
Prices initially opened higher, in response to the wintry conditions. But by midday in Europe, light sweet crude for January delivery had shed 48 cents to $90.79 a barrel in electronic trading on the New York Mercantile Exchange.
Posted by Peter C. T. Elsworth at 9:35 AM | Permalink
December 14, 2007
Oil prices rose Friday on forecasts that oil demand would grow faster than previously expected next year with new buyers in the market. Gains were held back, however, by the dollar gaining strength against the euro.
The International Energy Agency raised its forecast for world oil demand growth in 2008 by 170,000 barrels a day to 2.5 percent, compared with 2.3 percent in its previous report. It said overall demand was now expected next year to reach 87.8 million barrels a day, according to Dow Jones Newswires and reported by the Associated Press.
The forecast assumed continuing robust oil demand growth in non-OECD countries, where subsidies protect people from the impact of high oil prices, and normal winter weather.
On Friday, light, sweet crude for January delivery rose 20 cents to $92.45 a barrel in electronic trading on the New York Mercantile Exchange by the afternoon in Europe.
Posted by Peter C. T. Elsworth at 9:46 AM | Permalink
December 13, 2007
LONDON - Oil prices fell on Thursday, pressured by fears over the health of the economy of top oil consumer the United States, according to Reuters.
Oil had surged more than $4 in the previous session, following central bank action to ease tight credit conditions in the financial system that could hurt the U.S. economy and depress oil demand.
U.S. light, sweet crude futures fell $1.25 a barrel to $93.14.
Posted by Peter C. T. Elsworth at 11:23 AM | Permalink
December 12, 2007
LONDON - Oil prices were steady near $94 on Thursday after a surge of more than $4 in the previous session, which followed central bank action to ease tight credit conditions in the financial system that could hurt global economic growth, according to Reuters News Agency.
U.S. light, sweet crude futures fell nearly $1 a barrel initially, but then recovered to stand 15 cents higher at $94.54 by 8:19 a.m. EST.
Posted by Peter C. T. Elsworth at 5:40 PM | Permalink
NEW YORK -- Energy futures rose sharply Wednesday after the government reported unexpected declines in supplies of crude and heating oil last week and the Federal Reserve announced a plan to help banks weather the credit crisis, according to the Associated Press.
Crude supplies fell 700,000 barrels during the week ended Dec. 7, according to a weekly inventory report from the Energy Department's Energy Information Administration. Analysts had expected a 100,000 barrel increase.
Light, sweet crude for January delivery rose $4.37 to settle at $94.39 a barrel on the New York Mercantile Exchange, and January heating oil futures jumped 12.02 cents to settle at $2.6432 a gallon. It was crude's highest close since Nov. 27.
Posted by Peter C. T. Elsworth at 4:15 PM | Permalink
December 11, 2007
NEW YORK -- Gas prices fell below $3 a gallon Tuesday for the first time since Nov. 4, extending a trend that's expected to last through the heavily traveled Christmas and New Year's holidays, according to the Associated Press.
Oil futures, meanwhile, rose above $90 a barrel as traders anticipated the Federal Reserve will cut interest rates Tuesday afternoon. News that several crude oil pipelines in the Midwest were shut down due to ice storm also boosted crude prices.
Posted by Peter C. T. Elsworth at 1:42 PM | Permalink
December 6, 2007
Oil prices dropped to about $87 a barrel on Thursday, the lowest in six weeks, after a report showed an increase in U.S. supplies of gasoline and distillates, according to the Associated Press.
The market also was buoyed by a rise of crude supplies at a key U.S. terminal.
Traders shrugged off news like OPEC's decision to keep production levels steady and a big drop in overall U.S. crude stockpiles and took profits before prices fell further.
Posted by Peter C. T. Elsworth at 9:51 AM | Permalink
December 5, 2007
Oil prices rose sharply to about $90 a barrel Wednesday as OPEC members said they would keep output ceilings steady, according to the Associated Press.
Expectations that a weekly U.S. petroleum supply report due later Wednesday would show a small decrease in crude inventories also supported prices.
Light, sweet crude for January delivery added $1.61 to $89.93 a barrel in electronic trading on the New York Mercantile Exchange by afternoon in Europe.
Posted by Peter C. T. Elsworth at 10:55 AM | Permalink
ABU DHABI, United Arab Emirates -- OPEC decided Wednesday to keep its output ceilings steady in a move that propelled crude toward $90 a barrel, but plans to review the situation early next year, according to the Associated Press.
The move by the 13-nation Organization of Petroleum Exporting countries appeared to reflect OPEC concerns that it would be counterproductive to raise overall production quotas at a time when prices have retreated about 10 percent from recent record highs.
Posted by Peter C. T. Elsworth at 10:53 AM | Permalink
December 4, 2007
Oil prices fell Tuesday on speculation that OPEC oil ministers would increase production during a meeting later this week, according to the Associated Press. A new U.S. intelligence report concluding that Iran halted its nuclear weapons development program in 2003 also helped push prices lower.
Light, sweet crude for January delivery was down 92 cents to $88.39 a barrel in electronic trading on the New York Mercantile Exchange by midday in Europe. Earlier Tuesday, it rose as high $89.98.
Posted by Peter C. T. Elsworth at 9:49 AM | Permalink
December 3, 2007
Oil prices fell Monday in a volatile market on speculation that OPEC may still boost output at its meeting this week despite last week's sharp price drop, according to the Associated Press.
Light, sweet crude for January delivery was down 67 cents to $88.04 in electronic trading on the New York Mercantile Exchange by midafternoon in Europe. The contract had earlier traded as high as $89.94 and as low as $87.47.
Posted by Peter C. T. Elsworth at 10:51 AM | Permalink
November 30, 2007
Oil prices fell Friday on expectations that OPEC will increase output next week and on fading concerns of a supply disruption from a U.S. pipeline fire, according to the Associated Press.
Light, sweet crude for January delivery fell $1.55 to $89.46 a barrel in electronic trading on the New York Mercantile Exchange by midday in Europe. On Thursday, the crude contract gained 39 cents to settle at $91.01 a barrel in choppy trade.
Posted by Peter C. T. Elsworth at 9:27 AM | Permalink
November 29, 2007
Oil prices rose more than $3 Thursday after a fire erupted at a pipeline carrying crude oil from Canada to the heart of the United States, according to the Associated Press.
The fire late Wednesday along the Enbridge Energy pipeline in northern Minnesota killed two workers who were repairing it, authorities said. It was not immediately clear how the fire and the shutdown of five pipelines would affect supplies.
The U.S. consumes 20.58 million barrels of oil a day.
Light, sweet crude for January delivery jumped $3.47 to $94.09 a barrel in electronic trading on the New York Mercantile Exchange by midday in Europe. It climbed as much as $4.55 to $95.17 in the electronic session before slipping back.
Posted by Peter C. T. Elsworth at 9:40 AM | Permalink
November 28, 2007
VIENNA, Austria -- Crude oil futures rose Wednesday as traders bought back into the market on the heels of a steep drop prompted by concerns about the U.S. economy, according to the Associated Press.
Mixed signals from OPEC, meanwhile, kept the market guessing about whether the cartel would increase production.
The president of the Organization of Petroleum Exporting Countries said the group stands ready to put more oil into the market, although it had no plans to do so yet. But several OPEC oil ministers questioned the need for such a move.
Light, sweet crude for January delivery on the New York Mercantile Exchange rose 33 cents to $94.75 a barrel in electronic trading by afternoon in Europe. The contract fell more than $3 a barrel on Tuesday.
Posted by Peter C. T. Elsworth at 10:29 AM | Permalink
November 27, 2007
NEW YORK (AP) -- Oil prices plunged Tuesday, picking up downward momentum amid concerns that a slowing economy might reduce demand for crude just as OPEC members are considering an increase in production, according to the Associated Press.
Prices were also pressured by apparent progress at the Mideast peace summit in Annapolis, Md.
Light, sweet crude for January delivery dropped $3.28 to settle at $94.42 a barrel on the New York Mercantile Exchange. The contract is nearly $5 below its all-time high of $99.29 set last week.
Posted by Peter C. T. Elsworth at 4:25 PM | Permalink
VIENNA, Austria -- Oil prices continued to slide Tuesday on growing expectations that OPEC ministers will raise crude production following a meeting next week, according to the Associated Press.
A sharp sell-off on Wall Street overnight contributed to a decline in oil futures.
Crude's ascendancy has been stymied in recent weeks in part by conflicting signals from members of the Organization of Petroleum Exporting Countries about their willingness to add supplies to the global oil market. Iranian Oil Minister Gholam Hossein Nozari appeared to remove one of the obstacles to increased OPEC supplies over the weekend when he said his country is willing to lift production if needed.
"If statistics and data indicate there is a need to produce more oil, we have the capacity to increase the output and supply more oil for the market," Nozari told reporters.
Many traders believe Saudi Arabia is pushing for production increases against opposition from Iran, Venezuela and other OPEC members. CNBC reported Monday that Saudi Arabia has already boosted its oil output. Analysts said that confirms reports last week by two research firms that found OPEC production is rising faster than expected.
But Vienna's PVM Oil Associates noted that OPEC's seaborne oil exports in the first half of November dropped 340,000 barrels a day from the second half of October to 22.48 million barrels a day.
"The outage of major UAE fields due to maintenance was partly ... responsible for the developments," PVM said. It also noted U.S. National Weather Center predictions for colder than normal temperatures in the next 10 days - which could drive up heating oil demand.
Light, sweet crude for January delivery dropped $1.09 to $97.61 a barrel by midday in Europe in electronic trading on the New York Mercantile Exchange. The contract fell 48 cents to settle at $97.70 Monday.
Posted by Peter C. T. Elsworth at 9:10 AM | Permalink
November 26, 2007
LONDON - The weak dollar helped oil rise above $99 a barrel on Monday, close to the $100 milestone, but it retreated from session highs partly on expectations that an OPEC meeting next week could decide to increase supply, according to Reuters.
Iran's Oil Minister Gholamhossein Nozari said at the weekend that some OPEC members were advocating an increase in production when they meet in Abu Dhabi on December 5 to debate whether to raise output for a second time this year.
U.S. light, sweet crude for January delivery was down 66 cents at $97.52 by 9:06 a.m. EST, still within striking distance of the all-time high of $99.29 from last Wednesday.
Posted by Peter C. T. Elsworth at 10:11 AM | Permalink
November 23, 2007
Oil prices fell Friday as the market turned its attention to OPEC for signals of a production increase that might ease record prices, according to the Associated Press.
Trading volumes were also thin due to the U.S. Thanksgiving festivities and a public holiday Friday in Japan. Electronic trading was not affected.
Light, sweet crude for January delivery lost 62 cents to $96.67 a barrel in electronic trading on the New York Mercantile Exchange by midday in Europe. The contract rose as high as $97.64 earlier in the day before retreating.
Posted by Peter C. T. Elsworth at 9:27 AM | Permalink
November 21, 2007
Crude oil prices rose above a record $99 per barrel Wednesday as worries about inadequate winter supplies in the Northern Hemisphere and news of refinery problems stoked bullish sentiment, according to the Associated Press.
The declining U.S. dollar and speculation that the U.S. Federal Reserve will again cut interest rates also boosted prices. Some investors put their money into oil contracts, betting that gains in their price will offset dollar weakness.
Posted by Peter C. T. Elsworth at 9:28 AM | Permalink
November 20, 2007
NEW YORK -- Oil prices resumed their march toward $100 Tuesday, rising to records over $98 a barrel as futures drew strength from a declining dollar, news of refinery problems and speculation that the Federal Reserve will again cut interest rates, according to the Associated Press.
Heating oil futures also rose to new records. Gasoline prices, meanwhile, extended their decline at the pump.
Posted by Peter C. T. Elsworth at 4:37 PM | Permalink
Oil prices recovered Tuesday from an early dip as the U.S. dollar hit a new low against the euro, making oil futures attractive to investors using other currencies, according to the Associated Press.
The euro has been climbing steadily against the dollar since August amid fears for the health of the U.S. economy, stoked by the subprime credit crisis.
Light, sweet crude for January delivery on the New York Mercantile Exchange rose 95 cents to $95.59 a barrel in electronic trading by mid-afternoon in Europe.
Posted by Peter C. T. Elsworth at 10:05 AM | Permalink
November 16, 2007
There was a dreadful story in Friday's New York Times about a 19-year-old Saudi girl who had a sentence upped to 200 lashes and six months in jail because her lawyer complained that her conviction was unjust and the punishments meted out to seven men who raped her were too lenient.
Her crime? Being in the same car with an unrelated man! He was actually her former boyfriend and was returning pictures to her because she was about to marry another man.
I hope the marriage is still on, but I doubt it. You see, her "crime" came to light when she and the former boyfriend were kidnapped by the seven men who raped them both. She and her former boyfriend was originally sentenced to 90 lashes each for meeting with each other.
Certainly the men who kidnapped and raped them were punished with a mix of lashings and prison terms. But to sentence a 19-year-old girl to lashings and a prison term because a court suspected she intended to do something bad is not just unjust to the Western mind - it's bonkers.
But this is a world where women can't travel without permission, drive, study such subjects as law and engineering, vote, work in many government offices and have to wear neck-to-ankle black robes and cover their hair with a black scarf.
But don't say a word. We don't want to rock the boat that has the biggest reserves of the lifeblood of the industrial world. The Saudis are our friends.
- Peter C. T. Elsworth
Posted by Peter C. T. Elsworth at 2:21 PM | Permalink
NEW YORK -- Gas prices fell slightly overnight for the first time in weeks, raising doubts about a view that pump prices are destined to rise by another 10 cents to 15 cents in coming weeks to catch up with skyrocketing crude prices, according to the Associated Press.
Oil futures, meanwhile, rose Friday on investors' belief that supplies aren't as plentiful as a government report at first suggested.
The national average price of a gallon of gas fell 0.3 cent overnight to $3.109, according to AAA and the Oil Price Information Service. That decline followed several days in which increases in the price of gas were less than in previous weeks.
"The increase has slowed down somewhat," said Troy Green, a spokesman for AAA.
Gas prices are tied closely to the price of crude oil, which jumped 42 percent from late August to a record of $98.62 a barrel last week. But oil has since traded in the low $90s.
Posted by Peter C. T. Elsworth at 12:42 PM | Permalink
November 14, 2007
LONDON - Oil moved sharply higher on Wednesday, after falling for the past two days, supported by expectations of a further fall in U.S. crude oil supplies and as OPEC brushed off U.S. calls to raise output, according to Reuters News Agency.
U.S. light crude for December delivery rose $2.33 to $93.50 a barrel by 10:04 a.m. EST.
Oil has fallen more than $7 a barrel from last week's record of $98.62, pressured by evidence that high prices may be affecting demand, after the International Energy Agency's latest monthly oil market report cut predictions for demand growth.
Posted by Peter C. T. Elsworth at 10:48 AM | Permalink
November 13, 2007
NEW YORK -- Oil prices that last week seemed on an inexorable path toward $100 a barrel slid more than $3 to the $91 level Tuesday after the International Energy Agency cut its demand forecasts and said crude supplies are rising, according to the Associated Press.
Prices also fell after diplomats said Iran has handed over blueprints key to its nuclear program, meeting a central United Nations demand and potentially defusing the country's standoff with the West.
Posted by Peter C. T. Elsworth at 3:49 PM | Permalink
November 8, 2007
NEW YORK -- Oil futures advanced toward $100 a barrel Thursday as severe weather forced additional North Sea oil platforms to shut down and fire hit at a Texas refinery, stoking concerns that supplies of oil, gas and heating oil aren't sufficient to meet demand, according to the Associated Press.
Gas prices, meanwhile, rose further above $3 a gallon in response to crude prices, which have soared 42 percent since August. Overnight, the national average price of a gallon of gas rose 1.8 cents to $3.061, according to AAA and the Oil Price Information Service.
Posted by Peter C. T. Elsworth at 12:06 PM | Permalink
November 7, 2007
VIENNA, Austria -- Record oil prices edged closer to $100 a barrel Wednesday amid expectations of declining U.S. supplies. The weak dollar and OPEC's apparent reluctance to pump more crude into the market also boosted prices, according to the Associated Press.
Light, sweet crude for December delivery surged $1.24 to $97.94 a barrel by midday in Europe after earlier reaching a record $98.62 in electronic trading on the New York Mercantile Exchange.
Traders remain worried about whether supplies will be adequate to meet demand for heating fuel in the approaching Northern Hemisphere winter. News of an attack Monday on an oil pipeline in Yemen added to those concerns.
Posted by Peter C. T. Elsworth at 9:32 AM | Permalink
November 6, 2007
NEW YORK -- Oil futures jumped to a new record above $97 a barrel Tuesday after bombings in Afghanistan and an attack on a Yemeni oil pipeline compounded the supply concerns that have driven crude prices higher in recent weeks, according to the Associated Press.
Those concerns were also fed by a government prediction on Tuesday that domestic oil inventories will fall further this year while consumption rises.
At the pump, meanwhile, gas prices continued to rise, following oil's 39 percent price rally since August. The national average price of a gallon of gas jumped 2 cents overnight to $3.024 a gallon, according to AAA and the Oil Price Information Service.
Crude prices are within the range of inflation-adjusted highs set in early 1980. Depending on the how the adjustment is calculated, $38 a barrel then would be worth $96 to $103 or more today.
Posted by Peter C. T. Elsworth at 3:10 PM | Permalink
NEW YORK -- Oil futures jumped to a new record above $96 a barrel Tuesday after bombings in Afghanistan and an attack on a Yemeni oil pipeline compounded the supply concerns that have driven crude prices higher in recent weeks, according to the Associated Press.
Oil was already up before news of the blasts in northern Afghanistan that killed 64 people and the attack in Yemen. Severe weather forecasts for the North Sea, expectations that domestic crude supplies fell last week and the weak dollar all contributed to the latest move upward.
While Afghanistan doesn't produce much oil, traders watch for the possibility that any escalation in the conflict there between U.S. armed forces and Islamic militants could spill over into other countries, disrupting oil supplies out of the Middle East.
Posted by Peter C. T. Elsworth at 10:52 AM | Permalink
November 5, 2007
TORONTO -- The oil industry is under assault globally by nations and even provinces who want companies like Exxon Mobil, Chevron and Suncor to cough up more royalties they can use to address issues like poverty and education, according to the Assosiated Press.
First it was Venezuela. Now, Nigeria is reviewing its relationships with international oil companies and the oil-rich Canadian province of Alberta is set to announce a decision Thursday on increasing royalties from the energy industry. It's a move the industry warns could devastate Alberta's oil patch.
Posted by Peter C. T. Elsworth at 9:49 AM | Permalink
November 1, 2007
LONDON - Oil surged to a new record high beyond $96 a barrel after a sharp decline in U.S. crude stocks stoked supply concerns and the U.S. Federal Reserve cut interest rates, according to Reuters.
Oil dealers saw little standing in the way of the price blasting into triple digits.
"The market has its eyes on $100 a barrel and it really is the momentum that will carry it through," Rob Laughlin of MF Global said.
U.S. oil rose as high as $96.24 a barrel before pulling back to $95.18, up 65 cents, by 8:27 a.m. EDT. Brent crude also struck a record $91.71 before retreating to $91.10, for a gain of 47 cents.
Oil soared on Wednesday after U.S. refiners drained 3.9 million barrels of crude from storage, mostly from tanks in Cushing, Oklahoma -- delivery point for the NYMEX oil contract.
U.S. crude closed in on an inflation-adjusted high of $101.70 hit in 1980.
Posted by Peter C. T. Elsworth at 9:27 AM | Permalink
October 31, 2007
NEW YORK - Oil surged more than 4 percent to a record over $94 a barrel on Wednesday after a steep drop in U.S. inventories fueled winter supply concerns and markets awaited the U.S. Federal Reserve's decision on interest rates, according to Reuters.
U.S. oil jumped $4.00 to $94.38 a barrel.
U.S. crude oil stocks fell 3.9 million barrels in the week to October 26, government data showed, countering expectations for a build ahead of the Northern Hemisphere winter.
Posted by Peter C. T. Elsworth at 3:20 PM | Permalink
October 29, 2007
LONDON - Oil leapt to a record high for a third day, surpassing $93 as Mexico briefly halted one-fifth of its production and the dollar struck new lows, according to Reuters.
U.S. crude hit a high of $93.20 a barrel. Oil prices have soared by more than a third since mid-August as a stand-off between Turkey and Kurdish rebels, dollar weakness, easing interest rates and winter supply fears attracted a fresh wave of investment capital.
Prices rose on Monday after Mexico's state-owned oil company Pemex said it was shutting about 600,000 barrels per day (bpd) of oil output due to bad weather in the Gulf of Mexico.
Posted by Peter C. T. Elsworth at 9:53 AM | Permalink
October 26, 2007
LONDON - Oil rallied to a fresh record high above $92 a barrel on Friday as the dollar tumbled to a record low, Washington imposed new sanctions on Iran and gunmen shut more oil production in Nigeria, according to Reuters.
Oil's bullish momentum has pulled in increasing amounts of speculative investment and waves of technical buying have been triggered as U.S. oil pierced successive lines of resistance.
The price of crude oil is now closing in on its inflation-adjusted high of $101.70 seen over the course of April 1980, a year after the Iranian revolution and at the start of the Iran-Iraq war.
Posted by Peter C. T. Elsworth at 10:00 AM | Permalink
October 24, 2007
NEW YORK -- Oil futures surged Wednesday after the government reported large and unexpected declines in crude and gasoline inventories, according to the Associated Press.
Light, sweet crude for December delivery jumped $1.49 to $86.76 a barrel on the New York Mercantile Exchange.
November gasoline rose 3.94 cents to $2.1483 a gallon on the Nymex, and heating oil for November jumped 4.92 cents to $2.349 a gallon.
Posted by Peter C. T. Elsworth at 11:06 AM | Permalink
October 16, 2007
Seen the latest prices for crude oil? Over $88 a barrel!
I cut my professional teeth in the early 1980s as an oil reporter in New York City for Energy Intelligence, Platts Oilgram and Reuters, so I always follow the basic price of crude oil which to me is a key economic indicators.
Back then, $39 a barrel was the highest price that crude oil had ever reached - in early 1981. But that was before the spot market let alone the oil futures markets of today.
And as the price closes in on $90 a barrel, prices will soon be the highest they have ever been - even adjusting for inflation.
What's driving them? Simple supply and demand.
The supply pressure comes from uncertainty. The Middle East remains by far the biggest source of crude but also the most politically volatile region in the world. We've made a hash of Iraq which is now in chaos, Iran cocks a snook at the world with its nuclear plans and genocidal declarations about Israel and Osama bin Laden pursues his ultimate goal - the takeover of Saudi Arabia.
Consquently any blip in that region reverbrates through the market sending oil prices up.
Meanwhile, demand keeps going up. The industrializing third world, especially the mega-economies of China and India, have put pressure on oil supplies in recent years. And here in the U.S., we continue to wallow in low energy prices.
Europe has already cut into demand by taxing energy to the point that a gallon of gasoline is now the equivalent of $8 a gallon. You don't see many SUVs in Europe!
But as prices continue to go up, research into alternatives is bound to increase. It's simply a matter of economics. It's one thing to do R&D into alternative energy because of CO2 emissions and the ozone layer; it's another to do it because the price of oil is becoming exorbitant. The former is driven by enlightened self-interest; the latter by simple self-interest.
And that's where the analogy of the last whale comes in. For while we came close, we would never have killed off all the whales. It would have been too expensive to chase down the last one.
And so it is with oil. At a certain point, it becomes too expensive and we are forced to look for an alternative. To be sure, that time is a long way off but when crude prices are over $88 a barrel, it may not be that far off.
- Peter C.T. Elsworth
Posted by Peter C. T. Elsworth at 3:39 PM | Permalink
NEW YORK (AP) -- Oil futures rallied to a new record over $88 a barrel Tuesday on concerns about disruptions to Middle Eastern crude supplies and a growing view that domestic supplies aren't sufficient to meet fourth-quarter demand, according to the Associated Press.
Traders are concerned that a Turkish incursion into Iraq in search of Kurdish rebels could disrupt crude supplies from northern Iraq.
Posted by Peter C. T. Elsworth at 3:34 PM | Permalink
The price of oil was higher Monday than it's ever been, presaging increases for gasoline and other fuels — though not for long if oil speculators get cold feet and additional supplies hit the market as expected, according to USA Today's James R. Healey.
The closing price of $86.13 per barrel eclipsed the previous record of $83.69, set Friday. West Texas Intermediate — light, sweet crude — for delivery next month traded as high as $86.22 a barrel during the day, also a record.
Adjusted for inflation, the highest price recorded by the U.S. Energy Information Administration is $93.09, in January 1981.
The retail price of gasoline "would be about $3 this time of year if $86 oil is sustained," says Stephen Brown, director of energy economics at the Dallas Federal Reserve. Instead, the nationwide average for regular is $2.762, the EIA reported Monday. That was 0.8 of a cent less than last week, but 53.6 cents more than a year ago. A separate survey by AAA showed the average at $2.757 Monday, down 0.4 of a penny overnight.
Posted by Peter C. T. Elsworth at 10:37 AM | Permalink
LONDON - Oil thundered towards $88 a barrel on Tuesday, hitting a new record and extending a rally that has added eight dollars in a week on tight supplies, strong demand and tension in northern Iraq, according to Reuters News Agency.
Oil is closing in on the inflation-adjusted high of $90.46 seen in 1980, the year after the Iranian revolution and at the start of the Iran-Iraq war. Prices this year have averaged $67.
Posted by Peter C. T. Elsworth at 10:26 AM | Permalink
October 15, 2007
NEW YORK -- Oil prices surged as high as $86 a barrel Monday for the first time after OPEC said crude production by non-member countries is likely falling even as global demand for oil is rising, according to the Associated Press.
Prices were also supported by concerns Turkish forces will pursue Kurdish rebels into Iraq, disrupting oil supplies, and by technical buying by investment funds.
Despite the Organization of Petroleum Exporting Countries' decision last month to boost its production by 500,000 barrels per day beginning next month, the rest of the world will likely produce 110,000 fewer barrels of oil per day than expected in the fourth quarter, OPEC said in a report.
At the same time, fourth quarter demand for crude oil will grow by 100,000 barrels a day over last year, OPEC said.
The estimates add to sentiment that crude supplies are tight. Last week, the Energy Department reported that domestic crude inventories fell during the week ended Oct. 5 when they had been expected to rise. And the International Energy Agency concluded that oil inventories held by the world's largest industrialized countries have fallen below a five-year average.
"The fact that U.S. crude inventories fell yet again ... reinforced the market's underlying concern that demand has yet to slow down sufficiently to allow stocks to build, while supply is also perceived to be struggling to catch up," wrote Edward Meir, an analyst at MF Global UK Ltd., in a research note.
Light, sweet crude for November delivery rose $2.16 to $85.85 on the New York Mercantile Exchange after rising as high as $86, a record trading price.
Posted by Peter C. T. Elsworth at 2:22 PM | Permalink
NEW YORK -- Oil prices surged above $85 a barrel Monday for the first time after OPEC said crude production by non-OPEC countries is falling even as global demand for oil is rising, according to the Associated Press.
Prices were also supported by concerns Turkish forces will pursue Kurdish rebels into Iraq, disrupting oil supplies, and by technical buying by investment funds.
Despite the Organization of Petroleum Exporting Countries' decision last month to boost its production by 500,000 barrels per day beginning next month, the rest of the world will likely produce 110,000 fewer barrels of oil per day than expected, OPEC said in a report.
At the same time, fourth quarter demand for crude oil will grow by 100,000 barrels a day over last year, OPEC said.
Posted by Peter C. T. Elsworth at 11:13 AM | Permalink
October 10, 2007
VIENNA, Austria -- Oil prices slipped Wednesday in anticipation of increased U.S. crude inventory levels, after rising sharply in the previous session on U.S. government predictions that a colder winter ahead will help lift worldwide demand for crude during the fourth quarter, according to the Associated Press.
In a monthly report, the U.S. Energy Department's Energy Information Administration estimated global demand for oil will be 1.8 million barrels a day higher in the fourth quarter than it was during the same period last year. The report follows a prediction last Thursday from the U.S. National Oceanic and Atmospheric Administration that temperatures in the U.S. will be 1.3 percent colder than last year, although they'll be 2.8 percent warmer than average.
Oil prices have been volatile in recent days as investors have debated whether oil supplies are adequate to meet fourth-quarter demand. Some investors feel prices have peaked for the year and are due to begin a seasonal decline; others feel prices could rise again and set new records.
Light, sweet crude for November delivery fell 12 cents to $80.14 a barrel by midday in Europe in electronic trading on the New York Mercantile Exchange. The contract rose $1.24 to settle at $80.26 a barrel Tuesday in New York.
Posted by Peter C. T. Elsworth at 9:41 AM | Permalink
October 9, 2007
NEW YORK - Oil rose $2 to over $81 a barrel on Tuesday on concerns about consumer-nation supplies ahead of the coming Northern Hemisphere winter, according to Reuters.
European oil product inventories fell in September, industry monitor Euroilstock reported, while the U.S. government said heating demand will be higher this year than last due to forecasts for cooler weather.
The reports helped push U.S. crude futures up $2.04 to $81.06 a barrel by 12:28 p.m. EDT, reversing Monday's big sell-off. London Brent crude gained $1.18 to $77.76.
Posted by Peter C. T. Elsworth at 2:54 PM | Permalink
LONDON - Oil extended its losses to ease below $79 a barrel on Tuesday, after a nearly 3 percent slump in the previous session amid a wider slide in commodities tied to a rebound in the U.S. dollar, according to Reuters.
U.S. crude futures lost 38 cents to $78.64 a barrel by 8 a.m. EDT. London Brent crude was 70 cents down at $75.88.
Analysts said fundamentals factors, including weak demand from U.S. refiners in the midst of seasonal maintenance as well as weakness in product demand with the end of the summer gasoline season, were weighing on oil.
Posted by Peter C. T. Elsworth at 9:22 AM | Permalink
October 3, 2007
LONDON - Oil climbed further above $80 a barrel on Wednesday after three days of losses as investors expected weekly U.S. data to show crude stocks declining and raising the prospects for a winter supply crunch, according to Reuters.
U.S. crude gained 46 cents to $80.51 a barrel by 9:11 a.m. EDT (1311 GMT). Prices had fallen close to $3 from a near record high late last week on concerns the global credit crunch would stymie U.S. and European economic growth.
Posted by Peter C. T. Elsworth at 9:48 AM | Permalink
October 1, 2007
VIENNA -- Oil prices slipped below $80 a barrel Tuesday amid profit-taking as investors awaited the weekly U.S. energy supplies report due Wednesday, according to the Associated Press.
Some investors were taking profits after September's record-setting rally, said David Moore, a commodity strategist at the Commonwealth Bank of Australia in Sydney. He said the U.S. Energy Department report "will be important for the short-term direction of oil prices."
Light, sweet crude for November delivery on the New York Mercantile Exchange fell 61 cents to $79.63 a barrel in electronic trading by midday in Europe.
Posted by Peter C. T. Elsworth at 10:09 AM | Permalink
September 27, 2007
NEW YORK -- Oil and other petroleum futures surged Thursday amid supply concerns sparked by a decline in crude inventories at a key Oklahoma terminal and the confrontation between the West and Iran, according to the Associated Press.
The U.S. is trying to raise support for new U.N. sanctions against Iran over its nuclear programs. Iranian President Mahmoud Ahmadinejad says the nuclear issue is "closed," and has vowed to defy any U.N. sanctions.
Many traders are betting the West will take action against Iran before the end of the year, and worry that economic sanctions or a military strike will result in the disruption of oil supplies from the Middle East, Gheit said.
November light, sweet crude jumped $2.58 to settle at $82.88 a barrel Thursday on the Nymex, while October gasoline rose 6.65 cents to settle at $2.0939 a gallon.
Posted by Peter C. T. Elsworth at 3:24 PM | Permalink
September 21, 2007
NEW YORK -- Oil prices fell Friday as investors sold to lock in profits, but analysts doubt oil's record-breaking run is over and say gasoline prices are about to start following crude higher, according to the Associated Press.
Gasoline prices have so far held steady or even fallen despite a rally that boosted oil to new records for eight straight trading sessions on the New York Mercantile Exchange.
Posted by Peter C. T. Elsworth at 4:33 PM | Permalink
LONDON - Oil prices slipped a little today, after hitting a succession of record highs this week which were fuelled in part by oil company production shutdowns in the Gulf of Mexico because of a storm threat, according to Reuters.
U.S. crude for November delivery fell 18 cents to $81.60 a barrel by 7:30 a.m. EDT. The October U.S. crude oil contract expired on Thursday after it hit a record for the seventh-straight session at $84.10.
Posted by Peter C. T. Elsworth at 9:11 AM | Permalink
September 20, 2007
NEW YORK -- Crude oil prices surged further into record terrain Thursday, breaching $83 a barrel as the weak dollar and some worrisome weather in the Gulf of Mexico spurred buying, according to the Associated Press.
Gasoline futures jumped as well.
Posted by Peter C. T. Elsworth at 4:42 PM | Permalink
LONDON - Oil hovered around $82 a barrel on Thursday as sinking U.S. crude inventories and the threat of a storm gathering near Florida increased worries of a winter supply crunch in the world's top consumers, according to Reuters News Agency.
Oil has traded above $80 for the past week but OPEC officials and oil analysts say the lofty price is unsustainable.
U.S. light crude edged up 35 cents to $82.27 a barrel by 9:00 a.m., after a record-high of $82.51 on Wednesday, the sixth straight session to hit a record. London Brent crude fell 33 cents to $78.14.
Oil has risen by a third this year, driven by worries of fuel shortages during the Northern Hemisphere winter, supply risks in countries ranging from Mexico to Iran and flows of money into oil and out of poorly performing equity markets.
Posted by Peter C. T. Elsworth at 9:28 AM | Permalink
September 19, 2007
SINGAPORE -- Oil prices rose Wednesday above the previous session's record close, lifted by expectations the interest rate cut by the U.S. Federal Reserve will accelerate growth and increase demand for already tight crude and gasoline supplies, aaccording to the Associated Press.
Light, sweet crude for October delivery added 66 cents to $82.17 a barrel in Asian electronic trading on the New York Mercantile Exchange by midafternoon in Singapore.
Posted by Peter C. T. Elsworth at 9:33 AM | Permalink
September 18, 2007
BILLINGS, Mont. -- Oil and gas drilling on federal lands across the Rocky Mountain West could increase by more than 160 percent over the next two decades due in part to pro-industry regulations enacted by the Bush administration, according to a report by an environmental group, according to the Associated Press.
Posted by Peter C. T. Elsworth at 9:56 AM | Permalink
LONDON - Oil struck an all-time high above $81 a barrel on Tuesday, fuelled by concerns of a winter supply squeeze in top consumer the United States, where an anticipated interest rate cut was calming recession fears, according to Reuters.
Hurricane and other supply risks, tightening U.S. fuel inventories and fund flows into energy from poorly performing equity markets have driven a rally that has taken U.S. crude to new record highs for five straight trading sessions.
Posted by Peter C. T. Elsworth at 9:40 AM | Permalink
September 17, 2007
NEW YORK -- Oil futures set another trading record and other energy futures rose Monday on expectations the Federal Reserve will cut the benchmark federal funds rate, a move the market expects will support the economy and ensure its thirst for oil and gasoline, according to the Associated Press.
Oil futures rose as high as $80.50 on Monday. Oil prices set several new records over $80 a barrel last week for a number of reasons, including perceptions that problems in the subprime mortgage industry would have a minor effect on the economy.
Posted by Peter C. T. Elsworth at 2:19 PM | Permalink
LONDON - Goldman Sachs Monday forecast U.S. oil prices will surge to $85 by the end of the year, and said crude could climb as high as $90 due to tight supplies, according to Reuters.
Their estimate was $13 higher than its previous forecast, and came after oil's rally to a record high of $80.36 a barrel on Friday.
Posted by Peter C. T. Elsworth at 9:36 AM | Permalink
Oil prices dropped to extend the previous session's decline Monday when concerns faded about storms affecting oil rigs, refineries and pipelines in the Gulf of Mexico, according to the Associated Press.
Light, sweet crude for October delivery lost 70 cents to $78.40 a barrel in electronic trading on the New York Mercantile Exchange midday in Europe.
Posted by Peter C. T. Elsworth at 9:35 AM | Permalink
September 14, 2007
LONDON - Oil eased from its record high on Friday as a hurricane subsided in the Gulf of Mexico and as fresh evidence of credit troubles in the banking sector hit financial markets, according to Reuters News Agency.
There was some downward pressure on oil from credit worries that knocked European shares lower after UK mortgage lender Northern Rock tapped the Bank of England for funding.
U.S. crude dropped 62 cents to $79.47 a barrel by 10:05 a.m. EDT, having settled up 18 cents in New York on Thursday, when prices hit a record of $80.20 a barrel.
Posted by Peter C. T. Elsworth at 11:08 AM | Permalink
September 13, 2007
LONDON - Oil rose to an all-time high of $80.20 on Thursday after Hurricane Humberto forced the closure of some U.S. Gulf refiners and stoked concerns of fuel shortages this winter, according to Reuters News Agency.
Investors were also building up positions in the market -- their enthusiasm growing thanks to a market structure that can virtually guarantee favorable returns.
U.S. crude traded 21 cents lower at $79.70 a barrel by 10:36 a.m. EDT, having eased from its new record. London Brent crude also shed 21 cents to $77.47.
U.S. gasoline prices soared by 1.7 percent to $2.05 a gallon after Hurricane Humberto shut oil shipping channels and three refineries as it slammed onshore Texas.
Posted by Peter C. T. Elsworth at 11:01 AM | Permalink
September 12, 2007
LONDON - Oil held above $78 a barrel on Wednesday, close to its record high, after OPEC's modest output increase failed to allay fears over stock levels during the coming winter, according to Reuters News Agency.
U.S. light crude for October delivery was 7 cents higher at $78.30 a barrel by 8:15 a.m. EDT, after coming within a whisker of August 1's record high of $78.77 on Tuesday.
Posted by Peter C. T. Elsworth at 9:47 AM | Permalink
September 11, 2007
NEW YORK - Oil prices rose to a new record settlement price Tuesday as traders turned their attention to a government inventory report expected to show tight supplies and shrugged off OPEC's decision to boost output, according to the Associated Press.
Even factoring in OPEC's decision to increase oil production by 500,000 barrels per day starting Nov. 1, "supplies are tight," said Addison Armstrong, an analyst at TFS Energy Futures LLC.
And according to analyst predictions, they're going to get even tighter. Analysts surveyed by Dow Jones Newswires, on average, expect Wednesday's report from the Energy Department's Energy Information Administration will say that crude oil inventories fell by 2.7 million barrels in the week ended Sept. 7.
Investors had already priced in OPEC's increase, and many were looking for a larger production boost, analysts said.
Light, sweet crude for October delivery rose 74 cents to settle at $78.23 a barrel on the New York Mercantile Exchange after alternating frequently between gains and losses. The settlement price bested the previous record, set July 31, by 2 cents.
Posted by Peter C. T. Elsworth at 5:24 PM | Permalink
VIENNA - Saudi Arabia persuaded OPEC to raise oil output by 500,000 barrels per day on Tuesday in a gesture to consumer nations worried by the economic impact of $77 oil and rapidly diminishing fuel stocks, according to Reuters News Agency.
After seven hours of talks, OPEC officials announced the hard-won deal, effective November 1. Before the meeting Libya, Algeria and Venezuela were inclined to resist the proposal put forward by Saudi Arabia and its Gulf Arab neighbors.
Posted by Peter C. T. Elsworth at 5:21 PM | Permalink
Oil futures prices rose sharply Wednesday, briefly climbing above a record $80 a barrel after the government reported a surprisingly large drop in crude inventories and declines in gasoline supplies and refinery activity, according to the Associated Press.
The report from the Energy Department's Energy Information Administration suggested oil supplies are tightening as demand remains strong. That's why oil prices are rising despite OPEC's decision on Tuesday to boost crude production by 500,000 barrels per day this fall, analysts said.
Posted by Peter C. T. Elsworth at 11:02 AM | Permalink
LONDON - Oil steadied above $77 a barrel on Tuesday, as OPEC debated a modest rise in crude production to assuage consumers worried by prices near record highs and rapidly diminishing stocks, according to Reuters News Agency.
U.S. light crude rose five cents to $77.54 a barrel by 1145 GMT, off highs of $78.32 that placed it within striking distance of its record high of $78.77, on the back of pipeline attacks in the world's fifth-largest crude producer Mexico.
London Brent crude was up two cents at $75.50.
Posted by Peter C. T. Elsworth at 9:31 AM | Permalink
August 16, 2007
Oil prices fell today, reacting to a drop in global stock markets and expectations that a tropical storm would miss key oil and gas infrastructure in the Gulf of Mexico, according to the Associated Press.
The storm concerns overshadowed Wednesday's U.S. weekly government report that showed larger-than-expected declines in oil and gasoline inventories last week, but an increase in refinery activity that was in line with expectations. The decline in crude inventories supported higher oil prices, though the rest of the report was viewed as largely neutral, analysts said.
Light, sweet crude for September delivery lost $1.38 to $71.95 a barrel in electronic trading on the New York Mercantile Exchange by midday in Europe. The contract had risen 95 cents to settle at $73.33 a barrel Wednesday.
Posted by Peter C. T. Elsworth at 10:55 AM | Permalink
