Anyone seen an oil zombie today? They seem to vanish when prices retreatgreenspun.com : LUSENET : TB2K spinoff uncensored : One Thread
http://dailynews.yahoo.com/h/nm/20000913/bs/energy_markets_dc_1.html Wednesday September 13 5:27 PM ET
U.S. Oil Prices Fall From Highs
By Andrew Mitchell
NEW YORK (Reuters) - U.S. oil prices fell from near 10-year highs on Wednesday as traders saw a growing chance that President Clinton (news - web sites) could release emergency supply from the nation's Strategic Petroleum Reserve (SPR).
October crude on the New York Mercantile Exchange fell 46 cents to $33.82 a barrel, as concern over tight U.S. fuel supplies heading into winter showed no sign of abating.
The threat that prices could stay near or even exceed this week's post-Gulf War highs near $36 a barrel means the Clinton administration is actively considering a rare release of SPR oil as it seeks to head off growing inflation worries.
``We are examining all our options and we have not taken anything off the table,'' White House spokesman Jake Siewert said. ``We're going to keep an eye on the markets and see how they react to the OPEC (news - web sites) announcement (to increase production),'' Siewert added.
Producer cartel OPEC's Sunday deal to add another 800,000 barrels per day (bpd), three percent of its output, to world markets has done little to allay fears that the strained U.S. refinery system will be unable to meet winter heating oil demand.
The Department of Energy's statistics branch on Wednesday confirmed a small build in stocks of U.S. distillates, including heating oil last week but analysts said much more supply is necessary to take the steam out of the heating oil market.
``For the sake of the consumer I hope this winter is going to be mild,'' said Phil Flynn, analyst with Alaron Research.
The Energy Information Administration (EIA) showed distillate stocks rose 2.3 million barrels last week, mirroring Tuesday's build of 2.1 million barrels shown in figures from industry group, the American Petroleum Institute.
``With distillate inventories 20 percent lower than year-ago levels and crude oil inventories near 25-year lows, we believe the potential for winter heating oil shortages, particularly in the Northeast, is growing,'' said Jefferies and Company analyst Magnus Fyhr.
Prices have fallen a little this week as trading sources said that major lifters of Saudi Arabian crude have been told they will be given full-term contract volumes for October, scrapping curbs that have been in place for two and a half years.
OPEC President Ali Rodriguez of Venezuela, who warned recently that a shortage of global oil production capacity was nearing crisis levels and that $40 crude oil was a real possibility, also offered some reassurance.
Some OPEC countries were producing at or near capacity, but others ``like Saudi Arabia and Venezuela have enough capacity to respond to more (oil) demand,'' he said. ``If necessary, two million barrels (per day) could be added to the market,'' he said.
But rising fuel prices are already causing havoc in Europe where truckers unhappy about the high government taxes levied on diesel have blockaded refineries and fuel depots, causing filling stations to run dry.
In Britain, petrol tankers trying to break the blockade around British refineries were forced back by angry demonstrators. A Texaco spokesman said a convoy of seven tankers was forced back by demonstrators on Wednesday despite a police escort.
U.S. truckers, who suffer far lower federal fuel taxes than in Europe are so far not joining their European counterparts, even though wholesale diesel costs are rising relentlessly ahead of winter.
-- cpr (firstname.lastname@example.org), September 13, 2000
Get over it, charlie. No one's posting (except you) because nothing's happening. 46 cents does not a trend make or break. I'm still hoping for $26/barrel by Christmas. Now that's a present I and my wallet could appreciate. Since you consistently refuse to acknowledge our real interest in this situation in favor of painting us with your doomster labels (I suppose it allows you to justify your obsessive behavior, to yourself, at least), what's your point?
-- Cash (email@example.com), September 13, 2000.
Anyone seen an oil zombie today? They seem to vanish when prices retreat
No I haven't seen any today. But I did hear on the radio today about a bunch of 'em protesting in Britain....
Be real, Charlie. A lot of people have noticed oil prices are up over 30% so far this year--not just the people on this forum.
-- Reality (check@for.Charlie), September 14, 2000.
Army Ready to Help
British Army Deploys Tankers With Reserve Fuel to Cope With Potential Crisis
By Lucrezia Cuen
L O N D O N, Sept. 13 With fuel tax protests bringing many parts of Britain to a standstill and panic buying emptying most of the nations pumps, the British army today said it was deploying fuel tankers and drivers around the country to help cope if the situation grows worse. The army has deployed 80 fuel tankers loaded with reserve fuel at strategic locations across the U.K., a Defense Ministry spokesman said today.
The tankers were on standby in case Downing Street required them to distribute fuel for essential services. The spokesman said the Ministry had no plans to force the movement of fuel from oil companies.
The tankers being moved out by the Armed Forces were being accompanied by mobile fuel dispensers, the Ministry of Defence said, enabling them to operate in effect as mobile gas stations.
The announcement came as Britains streets today emptied of traffic, ambulances and fire services cut back services, schools faced closure, hospitals cancelled operations, and supermarkets warned of food shortages.
Hundreds of truck drivers moved their demonstrations over fuel prices to London earlier today, blocking main thoroughfares into and around the city with slow protests. Many of the citys residents chose to avoid the crush and skip work.
Although some fuel delivery trucks were allowed to distribute gasoline, most British gas stations remained closed as the protests grew. Some fuel truck drivers crossed demonstration lines to join protesters and refused to make deliveries.
Panic buying over the past two days drained more than half of the nations pumps after a rise in fuel costs in Britain pushed prices to around $5 a gallon more than 80 percent of which is tax and the highest price in Europe. Fuel scalpers were reportedly selling gas for up to $14 a gallon.
Late this evening, the National Blood Authority went on alert, saying it feared its blood supplies soon could be affected.
Blair Takes a Hard Line
British Prime Minister Tony Blair today said the six-day-long fuel blockades in Britain were putting lives at risk, but he vowed not to surrender to protesters.
Addressing the nation for the second time in 24 hours, Blair urged truckers and farmers picketing the gates of oil refineries to allow oil companies to get fuel supplies into tankers, onto the roads and into petrol pumps.
There is a real danger now for the national health service and other essential services, Blair said as he struggled with the toughest test of his three-year-old leadership. Lives are at risk if these people cannot get to work.
Blair pledged on Tuesday that the situation would be on the way back to normal within 24 hours. A day later he was forced to admit there was still a long way to go to fight off the protests against Europes highest pump prices. But the protests enjoy wide public support. A poll conducted by Britains GMTV found more than two- thirds of Britons think the blockades of gasoline refineries and depots should continue.
The poll followed a GMTV telephone poll on Tuesday, when 98 percent of the 32,500 callers said the government should reduce the price of gasoline.
Europe Fuming Over Fuel Costs
The fight over the high price of gasoline is paralyzing traffic across Europe.
Powerful German trade unions indicated they plan to start a protest Thursday targeting not only the gas pumps or refineries, but the depots of major supermarkets leaving shelves across the country empty.
Chancellor Gerhard Schroeder today tried to deflect growing pressure to cut fuel taxes. Back in Berlin after running into a stormy reception in the northeastern town of Schwerin, he said he would not surrender to demands to cut energy taxes in the face of soaring prices.
It is necessary. We have to make labor in Germany less expensive because we want to cut unemployment, said Schroeder, visibly annoyed at the widespread attacks on his energy policy that threatens to tarnish his strong standings in voter surveys.
In Schwerin, about 300 trucks and tractors parked on the side of the road, sounding their horns as Schroeder arrived. He smiled resolutely and waved to the crowd, which shouted back Capitalist pig! and Schroeder must go!
In Belgium, trucks blocked the center of Brussels for the fourth day.
In the Netherlands, commuters faced another frustrating morning as truckers staged slowdowns down all the main motorways.
Protests are also threatened in Spain and Ireland.
Skyrocketing Fuel Costs
Rising world oil prices paired with a fall in European currency have lead to price inflation. Crude oil hit a 10-year high of $35 last week.
Under pressure to reduce oil prices, the Organization of the Petroleum Exporting Countries agreed this past weekend to raise oil supply by 800,000 barrels per day.
However, OPEC also expressed dismay that consumer countries did not recognize the role of higher taxes in pushing oil prices higher.
Reuters contributed to this report.
-- (news@about.Britain), September 14, 2000.
How come all of Charlie's news about falling oil prices never seems to have any effect at the pump?
-- Gasman (-@its.too.expensive), September 14, 2000.
I am only "all knowing" NOT OMNIPOTENT.
-- cpr (firstname.lastname@example.org), September 15, 2000.
^^^^now that IS a good one.
all knowing? ROFLMAO
-- (email@example.com), September 16, 2000.