Wednesday, March 21, 2012

So Much for Demand Destruction --

Didn't I just use this subject line a few days ago?

Link here to AP news:
Oil prices rose to near $107 a barrel Wednesday after a report showed U.S. crude supplies fell unexpectedly, a sign demand may be improving in the world's largest economy.

The American Petroleum Institute said late Tuesday that crude inventories fell 1.4 million barrels last week, breaking a two-month trend of growing supplies. Analysts surveyed by Platts, the energy information arm of McGraw-Hill Cos., had predicted an increase of 2.1 million barrels.

Inventories of gasoline fell 1.4 million barrels last week.
Wow, that Saudi oil can't get here fast enough
Saudi Arabia is preparing to extend this year's unexpected jump in oil sales to the United States, adding to speculation about the response of the world's top oil exporter to sanctions against Iran and a rally in prices.

The kingdom's shipments to the United States have quietly risen 25 percent to the highest level since mid-2008, according to preliminary U.S. government data, a sizeable leap that appears at least partly related to the imminent completion of a major expansion at its joint-venture Motiva refinery in Texas.
And, of course, the drop in gasoline inventories comes on the heels of the report that three refineries in the Philadelphia area are scheduled to close. Refiners can't make a profit: oil costs too much and the costs are difficult to pass on to the consumer. That's because there's so much competition: with four service stations on most major urban intersections, one can always go to the service station with the lowest price, like $3.79 vs $3.83. On a 12-gallon fill-up, one could save .... thinking .... calculating ... 48 cents.

By the way, back to the linked story: the most common three words I see in business news these days are: analysts, rise, unexpectedly.

The next most common three words: analysts, fell, unexpectedly.

We either need new analysts or new words.

5 comments:

  1. see the following link on gas cost and production http://my.earthlink.net/article/bus?guid=20120321/61454b7f-7cbe-4b3c-8bd1-9674c01c2f52

    Frank

    ReplyDelete
    Replies
    1. Whether or not "drill, drill, drill" in the US can bring down the price of oil, is there any downside to "drill, drill, drill"?

      Delete
  2. Odds ans ends. Copy and paste stories.

    Note that they don't provide a link. http://www.jamestownsun.com/event/article/id/157119/group/homepage/

    No link, and no local numbers.
    http://www.jamestownsun.com/event/article/id/157114/group/homepage/

    This fails to recommend increased taxes and regulation on newspapers.
    http://www.jamestownsun.com/event/article/id/157072/group/Opinion/

    CO2
    http://www.jamestownsun.com/event/article/id/156987/group/Opinion/

    South Heart
    http://www.jamestownsun.com/event/article/id/156747/group/Opinion/

    Just for fun - Don't keep score!!!!!!
    http://www.jamestownsun.com/event/article/id/157073/group/Opinion/

    anon 1

    ReplyDelete
    Replies
    1. Normally I check out links sent in as comments, but I'm behind today so I will post it and gradually get to the links. Thank you very much; they look like interesting links. Especially all the 'opinions.'

      Delete
    2. I just went through all those Jamestown Sun links: I am quite impressed. All positive stories about the North Dakota oil patch; almost the polar opposite of the Dickinson Press. Remarkable.

      Delete

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