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Thread: Oil Trades Near Three-Month Low as Supplies Seen Rising

  1. #1
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    Oil Trades Near Three-Month Low as Supplies Seen Rising

    [URL="http://www.bloomberg.com/news/2012-05-07/oil-trades-near-three-month-low-as-supplies-seen-rising.html"]http://www.bloomberg.com/news/2012-05-07/oil-trades-near-three-month-low-as-supplies-seen-rising.html[/URL]

    When do we run out of space to hold all of this oil?


    [QUOTE]

    Oil traded near the lowest level in three months in New York before a government report that may show crude stockpiles rose to the highest in more than 21 years in the U.S., the world’s biggest consumer of the commodity.

    Futures were little changed after slipping for a fourth day yesterday.[B] U.S. supplies climbed 1.9 million barrels to 377.8 million last week, according to a Bloomberg News survey before an Energy Department report tomorrow. That would be [U]the highest level since September 1990 [/U]and the seventh weekly increase, the longest run since April 2010.
    [/B]
    Crude for June delivery was at $98.08 a barrel, up 14 cents, in electronic trading on the New York Mercantile Exchange at 9:07 a.m. Sydney time. The contract yesterday slid 55 cents, or 0.6 percent, to $97.94, the lowest close since Feb. 6. Prices are down 0.8 percent this year.

    Brent oil for June settlement dropped 2 cents to $113.16 a barrel on the London-based ICE Futures Europe exchange yesterday. The European benchmark contract’s premium to West Texas Intermediate closed at $15.22.

    To contact the reporter on this story: Ben Sharples in Melbourne at [email]bsharples@bloomberg.net[/email]

    To contact the editor responsible for this story: Alexander Kwiatkowski in Singapore at [email]akwiatkowsk2@bloomberg.net[/email]

    [/QUOTE]

  2. #2
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    [QUOTE=Buster;4462226][URL="http://www.bloomberg.com/news/2012-05-07/oil-trades-near-three-month-low-as-supplies-seen-rising.html"]http://www.bloomberg.com/news/2012-05-07/oil-trades-near-three-month-low-as-supplies-seen-rising.html[/URL]

    When do we run out of space to hold all of this oil?[/QUOTE]

    Is this good? I thought you were pushing for inflation?

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    [QUOTE=Winstonbiggs;4462229]Is this good? I thought you were pushing for inflation?[/QUOTE]

    I'm not pushing for anything. I'm posting articles that have facts, different points of view and possible solutions. Sorry that other folks (Nobel prize winning folks) have differing ideas than you do. If you wish to attack and or insult me perhaps you should just come out and do so.

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    [QUOTE=Buster;4462233]I'm not pushing for anything. I'm posting articles that have facts, different points of view and possible solutions. Sorry that other folks (Nobel prize winning folks) have differing ideas than you do. If you wish to attack and or insult me perhaps you should just come out and do so.[/QUOTE]

    I didn't realize you had no opinion and these were just random postings? Never mind.

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    Then there is also the refining capacity. Low crude oil prices only carries over to the pump if it can be refined faster than demand too.

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    [QUOTE=Winstonbiggs;4462236]I didn't realize you had no opinion and these were just random postings? Never mind.[/QUOTE]

    Hey, everyone is prone to making assumptions.

    please attack the ideas in the articles and not me

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    [QUOTE=majormajor42;4462239]Then there is also the refining capacity. Low crude oil prices only carries over to the pump if it can be refined faster than demand too.[/QUOTE]

    I have not heard or read anything stating that our refining capability has declined. But that may be true. please post a link

    I have read that our (USA) consuption has decreased.

    I have read that consumption of oil by China and India is growing as fast as their billion+ person economies are growing. And that is 8+% growth fast.

    I have also read that crude oil is getting more expensive to extract. We now drill in the bottom of the ocean and use lots of man power to extract it from 'tar sands' and shale. 20 years ago this was not 'cost effective'. The easy to get oil is getting used up. Every day the % of oil that comes from simple pumping decreases. It is not going to get any better. Even the giant oil field that is reported to be in Northern Alaska will be a b!tch to get and thus more expensive.

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    Lets face it the economy is in the tank. The governmeny can sugar coat the numbers all they want. The price of oil shows there is a world wide recession.

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    [QUOTE=Buster;4462245][B]I have not heard or read anything stating that our refining capability has declined. But that may be true. please post a link[/B]

    I have read that our (USA) consuption has decreased.

    I have read that consumption of oil by China and India is growing as fast as their billion+ person economies are growing. And that is 8+% growth fast.

    I have also read that crude oil is getting more expensive to extract. We now drill in the bottom of the ocean and use lots of man power to extract it from 'tar sands' and shale. 20 years ago this was not 'cost effective'. The easy to get oil is getting used up. Every day the % of oil that comes from simple pumping decreases. It is not going to get any better. Even the giant oil field that is reported to be in Northern Alaska will be a b!tch to get and thus more expensive.[/QUOTE]

    [url]http://money.cnn.com/2012/04/10/news/economy/refineries-gas-prices/index.htm[/url]

    [QUOTE][B]Refinery closures risk Northeast gas price spike[/B]

    By [EMAIL="steve.hargreaves@turner.com"]Steve Hargreaves[/EMAIL] [URL="https://twitter.com/intent/user?screen_name=cnnmoney"]@CNNMoney[/URL] April 10, 2012: 5:36 AM ET


    NEW YORK (CNNMoney) -- While gas prices soar to record levels, many U.S. refineries that make and sell gasoline are going broke.

    [B]Nearly 50% of the refining capacity on the East Coast has either shut down or may shut down within the next few months.[/B]

    If gas shortages develop due to the closed refineries, East Coast drivers could face higher prices than they otherwise would later this year.

    Sunoco (SUN, Fortune 500), which closed its Philadelphia-area Marcus Hook refinery in December and is trying to sell another facility nearby, said its refining businesses has been losing $1 million dollars a day for three years running.

    Last fall, ConocoPhillips (COP, Fortune 500) closed its Trainer refinery, also in the Philadelphia area.

    If all three refineries were closed, that would leave just six operating refineries in the Northeast.

    [B]The refineries are losing money because they are old and cannot process the cheaper, heavier types of oil that are increasingly in supply from Canada's oil sands, Saudi Arabia, Venezuela and elsewhere.[/B]

    The Sunoco refineries can process only the types of "light, sweet" crude imported from West Africa or the North Sea. The lightness refers to the oil's density, the sweetness to its sulfur content.

    Light, sweet oil is the easiest to turn into gasoline -- but also costs about $20 more per barrel.

    Refineries that have been upgraded and expanded along the U.S. Gulf Coast are capable of turning the heavier, cheaper oil into gasoline.

    East Coast gasoline shortages are a real possibility -- but not because there isn't enough gasoline in the United States. The real problem lies in transporting that gasoline to the Northeast.

    [B]Analysts worry there won't be enough barge, tanker or pipeline capacity to bring the gasoline to market.[/B]

    "There are going to be logistical problems getting product into New York," said Ben Brockwell, an analyst at the Oil Price Information Service. "The people I talk to are expecting shortages from August through the rest of the year."

    The supply shortages would occur at gasoline terminals, often identified by those giant, white, round tanks seen near ports and refineries.

    And that could drive up gas prices, though the impact should be temporary -- eventually, refiners in the Gulf Coast, Europe or Newfoundland would seek to take advantage of the higher prices by shipping gas to needed areas.

    The worst of the supply crunch would come after the peak summer driving season when prices won't likely be as high as they are now.

    The U.S. Energy Information Administration has been monitoring the situation. While it isn't quite as alarmed as Brockwell, it does see possible trouble.

    "The potential loss of the Sunoco Philadelphia refinery presents a complex supply challenge," the agency said in a recent report. To top of page[/QUOTE]

  10. #10
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    [QUOTE=Buster;4462243]please attack the ideas in the articles and....[/QUOTE]

    What ideas?

    The article is a statement of fact ("stockpiles at X level, highest since Y") only. There are no ideas, theories, speculation or editorial far as I can see in the posted portion (I didn't read the entire article, you posted a specific portion and read that portion).

    What idea do you belive this article raises? And what is your opinion on that idea? Without these two things, we have no basis for a discussion, only a fact (stockpiles at X), to which the answer is.....ok, and?

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    [QUOTE=MnJetFan;4462413]Lets face it the economy is in the tank. The governmeny can sugar coat the numbers all they want. The price of oil shows there is a world wide recession.[/QUOTE]


    I don't think most Americans care about a world wide recession, just what happens in America (even though they might be related). They also like low prices at the pump regardless of what the price of crude might be (even though they might be related).

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    [QUOTE=Buster;4462226]
    When do we run out of space to hold all of this oil?[/QUOTE]

    It's why it's $4.00 a gallon.



    OBAMA!!! WHAR!! GHARB!!! OBAMA!!! NA ! NA ! NNA!!!'

    Amirite?

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    Sadly the price of oil is going down for the same reasons it went down in 2008. Global manufacturing is slowing. The US economy is sluggish. Europe is in the crapper.

  14. #14
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    [QUOTE=PlumberKhan;4463282]It's why it's $4.00 a gallon.



    OBAMA!!! WHAR!! GHARB!!! OBAMA!!! NA ! NA ! NNA!!!'

    Amirite?[/QUOTE]

    Given your post is effectively content-free, and you're the only person in the thread to mention Obama, no, I'd say it's a prrtty obvious urnoright.

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    [QUOTE=Trades;4462498][url]http://money.cnn.com/2012/04/10/news/economy/refineries-gas-prices/index.htm[/url][/QUOTE]

    Thanks for posting that.

  16. #16
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    [QUOTE=Warfish;4462573]What ideas?

    The article is a statement of fact ("stockpiles at X level, highest since Y") only. There are no ideas, theories, speculation or editorial far as I can see in the posted portion (I didn't read the entire article, you posted a specific portion and read that portion).

    What idea do you belive this article raises? And what is your opinion on that idea? Without these two things, we have no basis for a discussion, only a fact (stockpiles at X), to which the answer is.....ok, and?[/QUOTE]

    I felt he was attacking me in the inflation thread.

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