Oil Prices DROP $4 a barrell

Submitted: Thursday, Mar 24, 2005 at 09:18
ThreadID: 21484 Views:2179 Replies:9 FollowUps:18
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So Petrol prices should drop today to under a Buck, since the millisecond oil goes up the up the price, shouldnt it be the same for drops?

Crude oil prices drop nearly $4 a barrel
March 24, 2005 - 7:59AM

Oil prices sank more than $2 a barrel on Wednesday on rising crude supplies in the United States, a strengthening dollar and signs that China's energy appetite, while still growing, has its limits.

Rising interest rates, which could slow economic growth and energy demand, were also a factor. Brokers noted that technical and speculative trading magnified the selloff.

"When you run up quickly, you can also come off very quickly," said Tom Bentz, a broker with BNP Paribas Commodity Futures in New York.

Light, sweet crude fell $2.22, or 4 per cent, to settle at $53.81 per barrel on the New York Mercantile Exchange, where oil futures are down nearly $4 a barrel since the intraday high of $57.60 set last Thursday.

In London, Brent crude for May delivery settled at $53.04, down $1.55 on the International Petroleum Exchange.

Oil is roughly 45 per cent more expensive than a year ago but still well below the inflation-adjusted peak above $90 a barrel set in 1980.

While petrol futures also fell Wednesday, US prices at the pump are soaring. Nationwide, a gallon of regular unleaded averages $2.11 (55.5 cents a litre), up 21 per cent from a year ago, with half of that gain coming in the past month.

The US Energy Department said in its weekly report that crude oil inventories rose by 4.1 million barrels last week to 309.3 million barrels, or 8 per cent above year ago levels.

The rise in US oil supplies coincided with evidence that the growth in oil demand in China may be slowing.

"The whole Asian region is now in the process of lower growth demand," said Frederic Lasserre of SG Securities in Paris.

In China, India, Thailand and Indonesia, rising domestic energy prices were dampening demand, said Lasserre. In China, for instance, demand was up 15 per cent in November but growth slid to only 3 per cent last month, he said.

Lasserre suggested that crude prices should be no higher than the mid-$40s, saying that supply fears over the past few months had resulted a "premium of at least $8 to $9" a barrel over market fundamentals.

A weak dollar also has factored into this year's price surge, so the strengthening of the US currency this week has been having the opposite effect on the value of oil and other commodities.

While the oil price rally appears to have hit a wall, traders were confident that the era of high oil prices is not over.

"High energy prices will be with us for quite a long time," said James Cordier, president of Liberty Trading Group in St. Petersburg, Florida.

Cordier said the underlying factors were strong global demand and limited excess production capacity that can be tapped in the event of a supply disruption.

The Organisation of Petroleum Exporting Countries, which produces roughly 40 per cent of the world's oil, agreed last week to boost its output quota by 500,000 barrels a day but that did not cause prices to dip. On Monday, a key OPEC official said the group may raise output by another half million barrels daily.

But Venezuela's oil minister Rafael Ramirez said he had not received any information from fellow OPEC members on the additional increase, and said there was adequate supply.

Tensions and possible outages in key producers Saudi Arabia, Iraq, Nigeria and Venezuela have also helped fuel crude's rise over the past year.

Nigeria's two oil unions said Monday they would begin labour action in April. The African nation is the continent's largest exporter and the fifth-largest exporter to the United States.
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Reply By: TheUndertaker - Thursday, Mar 24, 2005 at 09:30

Thursday, Mar 24, 2005 at 09:30
Your dreaming arnt you ?????????? Its Easter Thursday ,bowser prices are garenteed to rise ,
AnswerID: 103685

Follow Up By: Truckster (Vic) - Thursday, Mar 24, 2005 at 09:41

Thursday, Mar 24, 2005 at 09:41
Yea it was a dream I know..

But Our CAPED CRUSADER THE ACCC WILL COME TO OUR RESCUE....
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Follow Up By: MrBitchi - Thursday, Mar 24, 2005 at 10:27

Thursday, Mar 24, 2005 at 10:27
NOT
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Reply By: Footloose - Thursday, Mar 24, 2005 at 09:50

Thursday, Mar 24, 2005 at 09:50
Why not ask for a Royal Commission into energy price fixing in this country? Because the public might become aware that every price rise in fuel means a windfall for the Govt. We are taxed at the pump at the highest tax, 50c in the dollar. We're greasing an awful lot of other things as well as our vehicles !
AnswerID: 103687

Follow Up By: Truckster (Vic) - Thursday, Mar 24, 2005 at 09:53

Thursday, Mar 24, 2005 at 09:53
The public are aware of it, just too complacent to do anything about it.

anyway, what can you do about it? Vote for someone else? And they wont do the same thing.

Honestly, theresbleepall you can do about it, but buy KY and Vasaline in bulk.
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Follow Up By: Mad Dog (Australia) - Thursday, Mar 24, 2005 at 10:08

Thursday, Mar 24, 2005 at 10:08
Another price fixing case in Vic coming up soon, may be others to follow with a bit of luck.
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Follow Up By: Footloose - Thursday, Mar 24, 2005 at 10:10

Thursday, Mar 24, 2005 at 10:10
We are too compacent to do anything about many Govt policies, and that makes em believe that we just don't care. The truth is we do, but we just don't care enough.
The majority of Australians don't vote for a party but they join forces and bingo, a "mandate". What a strange system !!
Look at what one man and his fax machine has done for public awareness about 4wds. It doesnt take much, just a bit of media slu&&ing. Once it becomes an election issue then something will be done.
Anyway I'm still waiting for a pollie to drop off $20K to grease my palm. I'll even give him an autographed photo for free :))
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Follow Up By: V8Diesel - Friday, Mar 25, 2005 at 11:53

Friday, Mar 25, 2005 at 11:53
"Honestly, theresbleepall you can do about it, but buy KY and Vasaline in bulk" TRUE

That's why the oil comes in barrels, so the pr&%ks can bend you over them. We live in a Pacific 'Ream' country remember.
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Reply By: NissanNut - Thursday, Mar 24, 2005 at 10:08

Thursday, Mar 24, 2005 at 10:08
yep,
even if you make your own biodiesel, the govt will hit you with $0.49/L excise, even if your producing it only for personal use (not selling it off). doesnt leave consumers many options.

I might get to work designing that rubber band powered car idea that I had.......hehehehe, would probably be faster than the old ute anyway......

NUTS!
AnswerID: 103689

Reply By: Member - Bradley- Thursday, Mar 24, 2005 at 10:13

Thursday, Mar 24, 2005 at 10:13
breaking news on the radio, a massive BP refinery in the states has blown up ala longford gas in vic, they reckon 20% less juice in the states (or so they say) SO cause the yanks need more oil now, even though we are self sufficient, we will definetly get shafted on some riduculous world price hike.

$2.11 a gal, the septics must be sooking, the other year i was there and it was $1.10 or so, friend didnt want me to pay to fill his jeep, but i said for once in my life i want the chance to pay $20 to fill a fourby.

price hike coming, jonny and the grinning idiot must be salivating at the extra 100mill or so they will get each week from fuel gst.
AnswerID: 103691

Follow Up By: Footloose - Thursday, Mar 24, 2005 at 10:15

Thursday, Mar 24, 2005 at 10:15
Yep, the septics are doing it tough. $20 to fill a 4by, love it :))
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Follow Up By: Mad Dog (Australia) - Thursday, Mar 24, 2005 at 10:28

Thursday, Mar 24, 2005 at 10:28
With one less refinery don't they need less oil but the same amount of refined stuff.
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Follow Up By: Member - Bradley- Thursday, Mar 24, 2005 at 11:01

Thursday, Mar 24, 2005 at 11:01
i was assuming they will need to import more crude, as the other refineries will need to go into overdrive, maybe not, i dunno.

either way do you reckon they need much of an excuse to jack up the oil and fuel prices ?

not that i'm bitter and twisted or anything :-))
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Follow Up By: Mad Dog (Australia) - Thursday, Mar 24, 2005 at 16:49

Thursday, Mar 24, 2005 at 16:49
It's not only fuel prices, we live in a rip off the ordinary bloke society and breeding bitter and twisted people is core business for the Gov. Can't trust anyone except EO people these days. Perhaps if all the refineries blew up we could all get back to basics again.
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Follow Up By: Member - Bradley- Thursday, Mar 24, 2005 at 17:03

Thursday, Mar 24, 2005 at 17:03
right on Ray, yep the prob isnt the oil companies, its the freakin 50% of the price that the filthy govt puts its hand out for. With the fuel takes we pay, we should have the wordls best hospitals and heaps of them, women shouldnt have to travell 3 hours in victoria just to give birth for chrissssake, and we should be driving around on autobahns.

Hewsons gst proposal was a good one, but little jonnys gst plus payrol tax, plus all the other taxes and levies is just plain rotten. They just want to breed a society of dumb, disarmed, grunt working, tax paying fools.

Did some work on a fuel cell a few years back, might be time to re-visit the project..
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Reply By: Member - Jack - Thursday, Mar 24, 2005 at 11:45

Thursday, Mar 24, 2005 at 11:45
: )

.... all pigs fed and ready to fly ...."

Jack
The hurrieder I go, the behinder I get. (Lewis Carroll-Alice In Wonderland)

Member
My Profile  My Position  Send Message

AnswerID: 103704

Follow Up By: Savvas - Sunday, Mar 27, 2005 at 07:07

Sunday, Mar 27, 2005 at 07:07
The pigs are doing their job.

I noticed our local shell station had ULP 4c a litre cheaper yesterday than they were on Wednesday.
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Reply By: michael - Thursday, Mar 24, 2005 at 15:54

Thursday, Mar 24, 2005 at 15:54
Truckster hi, you're so right. Most people are complacent and accepting of increases especially of diesel prices. Over here in Perth I only ever buy at Gull outlets which is not one of the biggies in the shame game. They consistently keep diesel prices lower without shopping docket discounts so I support them as do my work colleages. When we fill up the Big Red Truck each day, guess which card we use? You guessed right. Not the two other biggies' cards! Yes it may seem like a pathetic, symbolic little protest to many people but at least it is something.
Another little protest over fuel prices I engage in is to ride my treadly to work. Yes, it's a bit scary in some places thanks to our local councils' ( Joondalup , Wanneroo ) narrowing local roads with islands and trees planted down middle of roads with surrounding treated pine bollards but it also keeps me fit for my job. Please consider me, exercise patience and pass wide, providing living room, when you see my lycra - clad R's out there as I'm doing it for yuse all !
Thanks DRC , I love yuse all.
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Reply By: Wazza - (Vic) - Thursday, Mar 24, 2005 at 16:42

Thursday, Mar 24, 2005 at 16:42
The price of fuel might be back up again after this:

http://www.cnn.com/2005/US/03/23/plant.blast/index.html

"TEXAS CITY, Texas (CNN) -- At least 14 people died and more than 70 others were injured in an explosion that ripped through a BP oil refinery in southeastern Texas on Wednesday, a company spokesman said."

"The refinery -- the country's third-largest -- produced 460,000 barrels of gasoline per day, 3 percent of the U.S. supply, said John Bresland, a CSB board member."
AnswerID: 103740

Follow Up By: Mad Dog (Australia) - Thursday, Mar 24, 2005 at 17:07

Thursday, Mar 24, 2005 at 17:07
We're lucky we live in Vic Wazza, we have the best bush right on our door step.
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Follow Up By: Rob from Cairns Offroad Training & Tours - Thursday, Mar 24, 2005 at 22:14

Thursday, Mar 24, 2005 at 22:14
I can see you have never been to Cairns Mad Dog Not only the best bush 15 klms from the city but 15 degrees warmer and a fuel is 10cents a litre cheaper.Cheers Rob
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Follow Up By: Mad Dog (Australia) - Friday, Mar 25, 2005 at 00:34

Friday, Mar 25, 2005 at 00:34
Sounds good Rob, apart from the heat that is.
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Reply By: rolux1983 - Thursday, Mar 24, 2005 at 20:43

Thursday, Mar 24, 2005 at 20:43
Hi
Just updated the fuel price for Roxby Downs on this site $1.280 / litre for diesel
I thought highway robbery was out lawed when they hung Ned Kelly

rolux
AnswerID: 103774

Follow Up By: GOB & denny vic member - Sunday, Mar 27, 2005 at 08:46

Sunday, Mar 27, 2005 at 08:46
dont worry about roxby try the roadhouses on the stuart then start crying

steve
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Reply By: Member Eric - Friday, Mar 25, 2005 at 22:29

Friday, Mar 25, 2005 at 22:29
I have to laugh when price fixing comes up on the agenda . It has been going on from day one , catching 2 mates with servos is a needle in a hay stack . I have owned servos and know its alot deeper than that. The price is fixed from the petrol company itself . If I was to purchase fuel today , I would do it at full retail . EG. If the board said 95.0 , I could be paying 99. cents a litre . Now most would say , What your seling at a loss . NO , I get supported , every litre I sell . Lets say I have a buy price of 98 cents a litre , I get a electronic message on my concole telling me my support . If its 5 cents , then i get remburst that after every litre I sell . so effectivlythat litre has cost me 93 cents . Now you are in the hands of the big companies . They want you to go up . They withdrough support . If you buy fuel at a cheaper price and they want you to go up , they do a price walk back . They want to drop the price , they offer more support . I freak out when the goverment says we cant catch them . What a load of crap.

To make you all feel better , Gas is priced once a month . Yep one set price and gets changes on the 4th of the month , how it goes up and down durring this month on the bouser , is a mistery lol .
AnswerID: 103849

Follow Up By: Savvas - Sunday, Mar 27, 2005 at 07:05

Sunday, Mar 27, 2005 at 07:05
Eric,

What do you mean by a price walkback? Are you saying that the companies can sell you the fuel at say 94c and then a few days later raise the price to say 98c? In other words charge you more for what you already bought.
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Follow Up By: Member Eric - Sunday, Mar 27, 2005 at 17:23

Sunday, Mar 27, 2005 at 17:23
You got it , I got to know the real meaning of Franchise , it actually means , come here so we can tick it up you
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