NewsMine — cabal-elite — corporate — oil — 2005-prices — Viewing Item

Gas price drops due to less demand due to high prices Original Source Link: (May no longer be active)    http://quote.bloomberg.com/apps/news?pid=10000006&sid=aPf.iHZkuVI8&refer=home http://quote.bloomberg.com/apps/news?pid=10000006&sid=aPf.iHZkuVI8&refer=home New York Gasoline Futures Tumble: World's Biggest Mover Oct. 5 (Bloomberg) -- Gasoline futures in New York fell for a fifth session on indications that demand is ebbing because of high prices at the pump. The 5.4 percent decline was the biggest fluctuation of any commodity market today. Gasoline demand over the past four weeks averaged almost 8.8 million barrels a day, 2.6 percent below the same period last year, the U.S. Energy Department said in a weekly report today. Eight states, including California and Virginia, have average retail gasoline prices above $3 a gallon, according to AAA, the nation's largest motorist organization. ``Demand is reaching the softest point of the year,'' said James Cordier, president of Liberty trading group in Tampa, Florida. Gasoline supplies, which fell 4.3 million barrels in the week ended Sept. 30, are not a factor in the market now, Cordier said. ``We're not trading supply, we're trading demand.'' Gasoline for November delivery fell 10.79 cents to $1.9078 a gallon on the New York Mercantile Exchange. It was the biggest one-day drop since Sept. 16. Prices have fallen 35 percent since reaching a record $2.92 a gallon on Aug. 31, after Hurricane Katrina shut about 10 percent of U.S. refining capacity. Losses accelerated after gasoline fell below two key price levels, according to traders who use charts, graphs and other indicators to signal price moves. Those prices were $1.9758 a gallon and then $1.9238 a gallon, said Al Bicoff, president of Technical Analytics Inc. in Highland Park, Illinois. Once the price falls below such technical levels it signals to traders that more declines are in store, Bicoff said. ``Gasoline definitely has taken a big move,'' said Bill Vitro, a trader for Castle Oil in New York. Retail Prices The average retail gasoline price in the U.S. jumped to a record $3.057 on Sept. 2, four days after Katrina came ashore. Pump prices averaged $2.941 a gallon yesterday, a 52 percent increase over the past year, according to the motorists' organization AAA. Traders are ``worried about the effect of high prices on demand,'' said Andy Lebow, a broker with Man Financial Inc. in New York. It remains to be seen if ``these twin hurricanes have dealt a blow to the economy.'' About 18 percent of U.S. refining capacity is shut, after Hurricanes Katrina and Rita damaged plants or cut their power. Gasoline production last week fell about 1.1 million barrels, or 12.6 percent, the largest drop in 16 years, according to Energy Department data. ``The market is still remarkably relaxed over this continued loss of refining capacity,'' Lebow said. Record Imports Imports of gasoline, including both finished fuel and gasoline blending components, rose to a record last week. In the wake of Hurricane Katrina, European countries promised to send gasoline to the U.S. to help make up for lost refining. Imports averaged more than 1.4 million barrels per day, the highest weekly average ever, the energy Department said. Heating oil for November delivery fell 3.49 cents, or 1.7 percent, to $2.0148 a gallon on the Nymex. Futures prices, which set wholesale levels for distributors, have increased 43 percent from a year ago. Lebow said it remains to be seen if, over the next two months, heating oil supplies can be built up as the country continues to suffer from reduced refinery output. ``We've lost over 3 million barrels per day of refining capacity,'' he said. ``We'll be making less distillate'' going into the cold season. Homeowners paid on average $2.694 a gallon for heating oil on Oct. 3, according to the Energy Information Administration, the statistical arm of the Energy Department. Residential prices are up 47 percent from a year ago. Heating oil inventories rose 332,000 barrels last week, the government said. Supplies of 57.6 million barrels were 12 percent higher than a year earlier, narrower than the 18 percent premium in last week's report. Crude oil in New York dropped $1.11 cents, or 1.7 percent, to $62.79 a barrel, down 11 percent from a record $70.85 reached on Aug. 30. Last Updated: October 5, 2005 15:12 EDT

August brings record highs in oil prices BP oil refinery blast in texas bumps prices Bp profits up 34 precent Chevron profits up with prices { July 29 2005 } Concern over iraqi oil during elections Crude futures stay above 67 { August 26 2005 } Crude oil surges with another storm in mexico gulf Crude prices inch toward 50 a barrel Current oil price levels unsustainably high { December 4 2005 } Decline in inventory larger than expected Depot explosion near london raises oil prices Exxonmobile shell post record profits Exxonmobile tells gas station owners to gouge Gas price drops due to less demand due to high prices Gas prices drop sharply after climbing Gasoline futures surge to record high after katrina { August 31 2005 } Gasoline pump prices high despite crude fall Goldman sachs predicts spike to 105d barrel { March 31 2005 } Greenspan says world must live with high prices Hurricane katrina shoots oil to over 70b Investors raising prices by betting on shortages { March 16 2005 } July futures send above 58 year record { June 17 2005 } London attack causes oil price drop London explosions causes oil price plunge Market shouldnt expect anything from opec More bicycles than cars sold due to oil prices No difficulties on supply side Oil approaches 61 as tropic storms threaten sypply Oil climbs to six week high in january 2005 Oil companies enjoy record earnings in UK { October 4 2005 } Oil demand outpacing supply concerns Oil dives below 50 on dollar gains { May 12 2005 } Oil drops below 50 a barrel Oil falls below 50 in april yet pump prices sour { April 28 2005 } Oil falls below 51 on high inventories { April 13 2005 } Oil hits 64 barrel over supply concern Oil hits new high amid norway strike fears { June 21 2005 } Oil hits record highs as saudi king dies Oil market oversupplied says iran Oil nears 61 as gulf storm gathers again { July 13 2005 } Oil prices hover around 55 dollars Oil prices stay firm above 51 dollars Oil reaches record 58 on supply concerns Oil supplies up as price tops 51 dollars Opec chief wants to increase production Opec oil output highest since 1979 { August 4 2005 } Opec oil output strong { April 2005 } Opec predicts 80 dollar barrel oil spike Opec production surpasses demand OPEC warns that oil prices will stay high Other factors not supply driving up oil Prices fed by speculation and unwarranted fear { April 5 2005 } Prices high despite adequate fuel supply Shell profits soar to historic highs Small car interest falls with gas prices { October 2005 } Speculation by hedge funds running up price US has 700m barrel reserves of oil US oil supplies increase as OPEC boosted production { June 28 2002 } US report sees gasoline prices moving higher still { April 8 2005 } Files Listed: 59

Correction/submissions

CIA FOIA Archive

National Security Archives

This site contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. For more information, go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purpose of your own that go beyond 'fair use', you must obtain permission from the copyright owner.