Better Fill up today

[frawin]

November Crude settled at $70.88, up $0.46 on the day, November-09 Natural Gas settled at $4.88, down $0.107 on the day.

[frawin]

November-09 Crude is trading at $71.175, up $0.295, November-09 Natural Gas is trading at $4.935, up $0.055.

[frawin]

The API (Industry) Products and OIl Inventory report came out yesterday, the EIA/DOE inventory  report comes out today


Oil Rises After Industry Report Shows Decline in Stockpiles



By Grant Smith and Ben Sharples

Oct. 7 (Bloomberg) -- Oil rose for a third day in New York after an industry report showed a decline in fuel and crude stockpiles in the U.S., the biggest energy-consuming nation.

Crude traded above $71 a barrel after the American Petroleum Institute said yesterday that distillate fuel inventories fell by 2.91 million barrels last week and crude supplies dropped by 254,000 barrels. The U.S. Energy Department will report government supply figures today.

R20;The unexpected drawdown in inventories has helped anchor prices around $71 in New York, but concerns about the rate of recovery are inhibiting a break higher," said Christopher Bellew, senior broker at Bache Commodities Ltd. in London.

Crude oil for November delivery rose as much as 88 cents, or 1.2 percent, to $71.76 a barrel in electronic trading on the New York Mercantile Exchange. It was at $71.19 at 9:55 a.m. London time.

Yesterday, the contract gained 47 cents to settle at $70.88. The API released its data at 4:30 p.m. New York time. Prices have climbed 60 percent this year.

The dollar index, which compares the greenback with a basket of six major currencies, dropped to 76.17 today from 78.01 a month ago, prompting investors to buy commodities as an inflation hedge.

U.S. crude oil inventories reported by the Energy Department's Energy Information Administration probably rose last week as refineries performed seasonal maintenance, a Bloomberg News survey showed. Stockpiles increased 2 million barrels in the week ended Oct. 2 from 338.4 million the week before, according to the median of estimates from 14 analysts.

Five-Year Average

Supplies of crude, gasoline and distillate fuel, a category that includes heating oil and diesel, were above the five-year average in the week ended Sept. 25, the department said on Sept. 30. The department is scheduled to release its Weekly Petroleum Status Report at 10:30 a.m. today in Washington.

Oil-supply totals from the API and EIA moved in the same direction 76 percent of the time over the past four years, according to data compiled by Bloomberg.

R20;If the API numbers are replicated in the EIA data, that would be quite supportive to the oil price," David Moore, a commodity strategist at Commonwealth Bank of Australia in Sydney, said by telephone. "The fragility of the U.S. dollar is also supportive to the oil price."

Demand Increase

The EIA increased its forecast for global oil consumption in the fourth quarter and next year, citing "sustained economic growth" in China and a recovery in other Asian countries.

Global crude demand may reach 84.7 million barrels a day in the fourth quarter and climb to 84.77 million barrels a day in 2010, the EIA said yesterday in its Short-Term Energy Outlook.

U.S. gasoline consumption jumped as pump prices dropped below $2.50 and less rain fell in the Midwest and Gulf Coast, according to a MasterCard Inc. report.

Motorists bought an average 9.23 million barrels of gasoline a day in the week ended Oct. 2, MasterCard, the second- biggest credit-card company, said in its report yesterday. That's the most since the week ended Aug. 21.

[frawin]

Front month Crude is trading at $69.50, down $1.38, Front Month natural Gas is trading at $4.99, up $0.11.
The Weekly EIA/DOE Crude and Products Inventory report came out today showing a build in products inventories and that is putting downward pressure on the market.


Below is a summary paragraph from today's report:

U.S. commercial crude oil inventories (excluding those in the Strategic
Petroleum Reserve) decreased by 1.0 million barrels from the previous week.
At 337.4 million barrels, U.S. crude oil inventories are above the upper
boundary of the average range for this time of year. Total motor gasoline
inventories increased by 2.9 million barrels last week, and are above the upper
limit of the average range. Both finished gasoline inventories and blending
components inventories increased last week. Distillate fuel inventories
increased by 0.7 million barrels, and are above the upper boundary of the
average range for this time of year. Propane/propylene inventories increased
by 0.1 million barrels last week and are above the upper limit of the average
range. Total commercial petroleum inventories increased by 3.8 million barrels
last week, and are above the upper limit of the average range for this time of
year.

[frawin]

November Crude settled at $69.57, down $1.31 on the day, November-09 Natural Gas settled at $4.904, up $0.024 on the day.

[larryJ]

Gasoline is still $1 more a gallon here in SoCal than in Elk County.  Aren't we lucky!

Larryj

[frawin]

Larry, your gasoline is higher to pay for Queen Nancy's Jet and expenses. Our Members of Congress from Oklahoma travel by Horseback and Oats are cheaper than Jet fuel.

[frawin]

November-09 Crude is trading at $70.175, up $0.605, November-09 Natural Gas is trading at $4.95, up $0.046.

[frawin]

This is not good news for the US crude supply and pricing. Nigeria has long been one of our major suppliers of "Sweet" crude. Several refineries have to run the higher quality, low Sulfur sweet crude and it also has a better Gasoline yield.


Nigerian Rebels Say They'll Resume Attacks After Cease-fire



By Mark Tannenbaum

Oct. 7 (Bloomberg) -- A Nigerian rebel group said it plans to resume attacks against the country's oil industry when a three-month-old cease-fire expires next week.

The Movement for the Emancipation of the Niger Delta, in an e-mailed statement through a spokesman, Jomo Gbomo, rejected a government amnesty offer and said it wouldn't send a representative to a meeting with the government scheduled for Oct. 9.

The government earlier this week called the country's amnesty program for fighters in the southern oil region "a huge success" and said rebel leader Government Ekpemupolo had agreed to lay down his weapons.

"Oil companies are warned as always to disregard this propaganda by the Nigerian government," MEND said in the statement, which couldn't be immediately verified.

"MEND considers this next phase of our struggle as the most critical as we intend to end 50 years of slavery of the people of the Niger Delta by the Nigerian government, a few individuals and the western oil companies once and for all."

Ekpemupolo, also known as Tompolo, met President Umaru Yar'Adua in Abuja on Oct. 3 and agreed to give up his weapons the next day at his camp near the southern city of Warri, a major base for the country's oil industry, Timiebi Koripamo- Agary, a spokeswoman for the Presidential Amnesty Committee, said in a telephone interview on Oct. 4.

Clashes between Nigerian troops and Tompolo's fighters in May prompted a government offensive against insurgents in the oil region. While troops destroyed several militant camps, rebel fighters attacked oil facilities, helping reduce Nigeria's oil production to the lowest level in 20 years, according to the International Energy Agency.

MEND has said the amnesty program failed to address demands for redistribution of oil wealth to the region's inhabitants, who are among Nigeria's poorest. MEND extended a 60-day cease- fire that ended last month until Oct. 15 to give the government time to discuss "the root issues."

[frawin]

November Crude settled at $71.69, up $2.12 on the day, November-09 Natural Gas settled at $4.963, up $0.059 on the day.