EdwardKnoxII Posted June 29, 2004 Report Posted June 29, 2004 http://moneycentral.msn.com/content/invest...58.asp?GT1=3584 Oil at 2-month low; gas down 23% Improved hopes for steadier exports out of Iraq take U.S. crude down to $36, well off its $42 high. Pump and futures prices for gasoline continue to drop as well. By Toby Reynolds, Reuters Oil prices dropped to their lowest level in more than two months on Tuesday as the handover of power to Iraq's interim government raised hopes for less sabotage and steadier exports, reinforcing indications of healthier world supply. U.S. light crude lost 23 cents to $36.01 a barrel, after bouncing off an intra-day low of $35.65, the lowest price seen since April 21. The contract fell $1.31 on Monday, the day the United States surprised the world by ceding control two days early in Iraq. U.S. light crude has lost more than $6 per barrel from a record high of $42.45 reached June 2, as increased OPEC production helps rebuild U.S. inventories and encourages speculators to bail out of the market. Gasoline futures fall; so do pump prices Monday's earlier-than-expected handover of Iraqi sovereignty strengthened selling. Traders had feared renewed attacks on Iraqi oil facilities ahead of the planned June 30 transfer of power. "The early handover is reducing fears of terrorist disruptions to oil supplies -- fears that had added at least several dollars to prices,'' said David Thurtell, commodity strategist with Commonwealth Bank of Australia. Monday's crude losses were led by gasoline futures, which dropped about 5% to $1.1448 a gallon. A 23% fall in U.S. gasoline futures prices since mid-May has helped pull crude down from the $40 level as fears for summer supply shortages diminish. The weighted national average price for all three grades of gasoline at the pump fell 6.6 cents to $1.98 per gallon Friday after rising more than 59 cents between mid-December and June, said analyst Trilby Lundberg, who publishes a biweekly survey of 8,000 gas stations across the United States. The biggest selling gas, self-serve regular, averaged $1.94 a gallon. Not out of the woods "The fact that fundamentals are softening and prices heading down comes as no surprise,'' said analysts at PFC Energy. Chinese efforts to slow economic growth, reduced fears over the security of Middle Eastern supplies, and higher OPEC output, were driving the price downturn, PFC said. The Organization of the Petroleum Exporting Countries agreed earlier in June, when New York futures prices were at record highs, to raise its formal output limits by 2 million barrels a day from July 1. It also agreed to lift curbs by another 500,000 barrels from August 1. Prices could quickly go back up again in the event of a major attack on oil facilities, analysts said. "If the situation in Iraq does worsen substantially, exports could be curtailed far more than has occurred to date and prices could spike over $40 again,'' the PFC Energy report said. The latest weekly inventory snapshot from the U.S. government was expected to show tighter gasoline supplies, but a build on crude. A Reuters poll of seven analysts, ahead of the release of the Energy Information Administration data on Wednesday, forecast an average drop of 800,000 barrels in gasoline stocks in the week to June 25. Commercial crude stocks were expected to show a 2 million-barrel build, which would extend an uptrend to 18 of the past 22 weeks.
NoCalMike Posted June 29, 2004 Report Posted June 29, 2004 something tells me that prices over here won't go down as much as the drop in crude will allow it.
Guest Choken One Posted June 30, 2004 Report Posted June 30, 2004 well Gas has been pretty cheap for the most part lately...floating around 1.62 to 1.77. 3 weeks ago it was 2.19
DerangedHermit Posted June 30, 2004 Report Posted June 30, 2004 Gas has been dropping slightly. It's now $2.09, down from $2.19. It hasn't gone down further in New York though, because I'm pretty sure at least the NY metro area requires a special blend of gas.
Jingus Posted June 30, 2004 Report Posted June 30, 2004 Right now in TN and GA it's hovering around 1.90. Which is weird, considering that a few weeks ago it was down to 1.70; why would it be higher now, with all the prices down?
MarvinisaLunatic Posted June 30, 2004 Report Posted June 30, 2004 $1.8x depending where you go here, and it was up to as high as $1.97 a couple weeks ago so theres been some drop. The fact that gas prices have gone down somewhat has shut must people up around here on the subject.
Guest MikeSC Posted June 30, 2004 Report Posted June 30, 2004 Right now in TN and GA it's hovering around 1.90. Which is weird, considering that a few weeks ago it was down to 1.70; why would it be higher now, with all the prices down? How long ago was a "few weeks" --- because prices spiked up BIG-TIME for a little while there. -=Mike
Jingus Posted June 30, 2004 Report Posted June 30, 2004 No long ago, a month or less. I just find it weird that they'd be higher at the pump now when barrels are selling at a record low.
MrRant Posted June 30, 2004 Report Posted June 30, 2004 Right now in TN and GA it's hovering around 1.90. Which is weird, considering that a few weeks ago it was down to 1.70; why would it be higher now, with all the prices down? 4th of July Weekend is coming.
NoCalMike Posted June 30, 2004 Report Posted June 30, 2004 some gas stations around here have gone all the way down to $2.09, like the am/pm, but Chevron is still hovering at $2.19, when NORMALLY they would only be 2-3 cents above the cheaper places.
Guest Agent of Oblivion Posted June 30, 2004 Report Posted June 30, 2004 $1.56 for regular at my favorite gas station.
Lil' Bitch Posted June 30, 2004 Report Posted June 30, 2004 Thank God, I didn't think the prices would ever go down.
Guest Choken One Posted July 1, 2004 Report Posted July 1, 2004 I can't even remember when Gas was below 1.49...and yet it was only 6 months ago...seems so long ago. Anyone just do what my friend did? Spent 100 on gas when it was like 1.62 before it REALLY went up, like to 2.19 and put them all in containers...thinking in the end it'd save him money.... I know he isn't the only one who did that.
Perfxion Posted July 1, 2004 Report Posted July 1, 2004 Gas prices low? Stilll 2.19 to 2.50 a gallon here. Only 1 station has dropped any, most have gone up.
Mole Posted July 1, 2004 Report Posted July 1, 2004 Low prices? I missed that part, seeing at school it was $2.33 for the cheapest.
Red Baron Posted July 1, 2004 Report Posted July 1, 2004 77 cents a litre here in my town, but everywhere else its 75 cents a litre.
Guest Choken One Posted July 1, 2004 Report Posted July 1, 2004 gas went up to 1.89 this morning and just dropped back to 1.74
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