Shrinking supplies spook oil traders prices surge 5 percentgreenspun.com : LUSENET : TB2K spinoff uncensored : One Thread
By DAVE CARPENTER AP Business Writer
Crude oil prices barged back into expensive $30-a-barrel territory again Friday on the New York Mercantile Exchange, rising nearly 5 percent on renewed concerns about shrinking U.S. stockpiles.
OPEC and oil top producer Saudi Arabia have both pledged recently to pump more oil if prices didn't fall substantially, prompting a selloff on the market. But extra oil hasn't yet shown up in any big quantities, and analysts said this week's reports by the Department of Energy and the American Petroleum Institute, showing dwindling supplies, are finally sinking in.
"Despite their promises, the Saudis haven't made any significant moves to increase production," said Phil Flynn, energy analyst for Alaron Trading Corp. in Chicago.
"Coupled with the report that crude stocks are just slightly above record lows that were set in January, traders have to be a little nervous about the tenuous situation," he said. "If these numbers are correct, we're walking a very, very tight rope here."
The reports showed that U.S. crude supplies had dropped by 9 million to 10 million barrels last week at a time when analysts were expecting an increase. It was the biggest decline in six months.
Also contributing to the increase were bullish comments by Venezuelan President Hugo Chavez. Chavez said the rise in the price of oil was the result of a strategy, and that strategy will continue.
West Texas Intermediate crude for September delivery rose $1.30 to $29.96 a barrel.
In London, September Brent crude from the North Sea rose $1.06 to $29.37 a barrel on the International Petroleum Exchange.
-- (email@example.com), August 05, 2000
"But extra oil hasn't yet shown up in any big quantities"
Ed and Gary were right, and so was I! They're still having problems fixing all those non-compliant chips!
Oh boy, better re-stock your supplies folks, we're headed for a global economic meltdown. Y2K is just getting started!
-- (firstname.lastname@example.org), August 05, 2000.
Party On! Whoop, Whoop. The Fat Lady is finally starting to sing! Whoop, Whoop. There will be billions dead! Whoop, Whoop. More importantly the pollies were wrong and we were right! Whoop, Whoop.
-- Doomer Dumb Dumb (email@example.com), August 05, 2000.
But you will have all the Nestle and M&Ms you will need:
A big selloff of cocoa futures extended into a second day as investors jockeyed for a price reflecting the huge size of current West African crops, which will dump more beans onto a well-supplied world market.
The decline was slowed and stopped, at least temporarily, by session's end amid uncertainties about prospects for the next crop and the tense political situation in Ivory Coast, the world's No. 1 producer of cocoa beans.
September cocoa fell $21 to $777 a ton on the Coffee, Sugar and Cocoa Exchange in New York after falling as low as $767.
-- cpr (firstname.lastname@example.org), August 05, 2000.
Heeee heeee!! That was pretty slick how you just changed the subject real quick there creep! LOLOLOL
-- (email@example.com), August 05, 2000.