Post by redwolf on Oct 27, 2007 10:27:04 GMT -6
Oil Prices Surge on Inventory Report
By JOHN WILEN,AP
NEW YORK (AP) - Oil futures surged Wednesday after the government reported large and unexpected declines in crude and gasoline inventories.
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.
November natural gas rose 17.3 cents to $6.934 per 1,000 cubic feet on the Nymex.
In London, December Brent crude jumped $1.45 to $84.30 a barrel on the ICE Futures exchange.
In its weekly inventory report, the Energy Department's Energy Information Administration said crude oil inventories plummeted by 5.3 million barrels during the week ended Oct. 19. Analysts surveyed by Dow Jones Newswires, on average, had predicted that crude inventories rose by 300,000 barrels.
Refinery utilization, a measure of refinery activity, fell last week by 0.2 percentage point to 87.1 percent of capacity. Analysts had expected an increase of 0.3 percentage point.
Gasoline inventories dropped by 2 million barrels last week. Analysts had expected an increase of 1.1 million barrels. And supplies of distillates, which include heating oil and diesel, fell last week by 1.8 barrels. Analysts had expected distillate inventories to rise by 200,000 barrels.
Imports of crude oil fell last week by 1.3 million barrels a day to an average of 9.1 million barrels a day. Gasoline imports fell last week by 255,000 barrels a day to an average of 838,000 barrels a day.
Demand for gasoline rose last week by 120,000 barrels, the EIA said.
My opinion:
Demand is outpacing supply. There is NOTHING in place to provide energy on the scale of oil. Most analysts think we are close to peak production. This could be the mother of all disasters.
By JOHN WILEN,AP
NEW YORK (AP) - Oil futures surged Wednesday after the government reported large and unexpected declines in crude and gasoline inventories.
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.
November natural gas rose 17.3 cents to $6.934 per 1,000 cubic feet on the Nymex.
In London, December Brent crude jumped $1.45 to $84.30 a barrel on the ICE Futures exchange.
In its weekly inventory report, the Energy Department's Energy Information Administration said crude oil inventories plummeted by 5.3 million barrels during the week ended Oct. 19. Analysts surveyed by Dow Jones Newswires, on average, had predicted that crude inventories rose by 300,000 barrels.
Refinery utilization, a measure of refinery activity, fell last week by 0.2 percentage point to 87.1 percent of capacity. Analysts had expected an increase of 0.3 percentage point.
Gasoline inventories dropped by 2 million barrels last week. Analysts had expected an increase of 1.1 million barrels. And supplies of distillates, which include heating oil and diesel, fell last week by 1.8 barrels. Analysts had expected distillate inventories to rise by 200,000 barrels.
Imports of crude oil fell last week by 1.3 million barrels a day to an average of 9.1 million barrels a day. Gasoline imports fell last week by 255,000 barrels a day to an average of 838,000 barrels a day.
Demand for gasoline rose last week by 120,000 barrels, the EIA said.
My opinion:
Demand is outpacing supply. There is NOTHING in place to provide energy on the scale of oil. Most analysts think we are close to peak production. This could be the mother of all disasters.