Better Fill up today

[frawin]

Below is the weekly Petroleum Inventory report, the US continues to show a year-over-year decrease in demand.
Frank
Summary of Weekly Petroleum Data for the Week Ending June 20, 2008

U.S. crude oil refinery inputs averaged nearly 15.3 million barrels per day
during the week ending June 20, down 181 thousand barrels per day from the
previous week's average. Refineries operated at 88.6 percent of their operable
capacity last week. Gasoline production rose last week, averaging about 9.1
million barrels per day. Distillate fuel production increased last week,
averaging about 4.6 million barrels per day.

U.S. crude oil imports averaged about 10.3 million barrels per day last week,
down 8 thousand barrels per day from the previous week. Over the last four
weeks, crude oil imports have averaged nearly 10.0 million barrels per day, 86
thousand barrels per day below the same four-week period last year. Total motor
gasoline imports (including both finished gasoline and gasoline blending
components) last week averaged nearly 1.2 million barrels per day. Distillate
fuel imports averaged 107 thousand barrels per day last week.

U.S. commercial crude oil inventories (excluding those million barrels from the
previous week. At 301.8 million barrels, U.S. crude oil inventories are near the
lower boundary of the average range for this time of year. Total motor gasoline
inventories decreased by 0.1 million barrels last week, and are in the lower
half of the average range. Finished gasoline inventories increased last week
while gasoline blending components inventories decreased during this same time.
Distillate fuel inventories increased by 2.8 million barrels, and are in the
middle of the average range for this time of year. Propane/propylene inventories
increased by 1.2 million barrels last week but remain below the lower limit of
the average range. Total commercial petroleum inventories increased by 5.4
million barrels last week, and are near the bottom of the average range for this
time of year.

Total products supplied over the last four-week period has averaged 20.2 million
barrels per day, down by 2.3 percent compared to the similar period last year.
Over the last four weeks, motor gasoline demand has averaged about 9.3 million
barrels per day, down by 2.1 percent from the same period last year. Distillate
fuel demand has averaged nearly 4.1 million barrels per day over the last four
weeks, down by 1.1 percent from the same period last year. Jet fuel demand is
3.6 percent lower over the last four weeks compared to the same four-week period
last year.

[frawin]

The Bearish inventory report and the fact that Americans are doing their part to reduce demand has resulted in the August crude futures trading off $-4.70 at $132.30 and Natural Gas for July Delivery trading off $0.21 $12.805/.MMBTU. Hopefully this trend will continue and the pullback extended.
Frank

[pam]

What do you make of this?

API reports rise of 1.6 million barrels in crude supply

By Myra P. Saefong
Last update: 10:46 a.m. EDT June 25, 2008Comments: 2
SAN FRANCISCO (MarketWatch) -- The American Petroleum Institute reported a rise Wednesday of 1.6 million barrels in crude supplies for the week ended June 20. The Energy Department had reported a climb of 800,000 barrels for the latest week. Motor gasoline supplies were up 1.1 million barrels, the API said. The government had reported that supplies fell by 100,000 barrels. Distillate supplies climbed by 3.2 million barrels, the API said. They were up 2.8 million barrels, according to the Energy Department.

[frawin]

It is not uncommon for the A.P.I. and the EIA to have minor differences in the data they recieve. Given the total overall numbers there is very little difference in them. In some cases the cutoffs for each reporting group can have minor time differences, not a big deal and not that uncommon.
Frank

[pam]

sounds reasonable, the difference in gas supplies just caught my attention. Seemed like a big difference

[frawin]

Pam, given the overall numbers is a pretty minor difference, in any case the overall picture is encouraging.
Frank

[frawin]

August Crude Oil closed down $2.45 at $134.55, Natural Gas for July closed down $0.258/MMBTU at $12.753. With Natural Gas this high for this time of year, Electric Bills will be going up.
Frank

[frawin]

August Crude is trading at $135.775 up $1.225, note the news article below from this morning's Bloomberg report.
Crude Oil Rises on Lower Dollar, Possible Libya Production Cut



June 26 (Bloomberg) -- Crude oil rose above $135 a barrel as a lower U.S. dollar spurred commodities investment and Libya said it may cut production.

Oil, gold and copper gained as a weaker dollar increased demand for commodities as a hedge against inflation. The U.S. currency dropped after the Federal Reserve gave no signal of higher interest rates yesterday. The head of Libya's national oil company said the country may reduce output because the market is oversupplied.

``After the Federal Reserve meeting the dollar depreciated and this is supportive for the oil market,'' Hannes Loacker, an analyst at Raiffeisen Zentralbank Oesterreich in Vienna, said in a phone interview

Crude oil for August delivery rose as much as 68 cents, or 0.5 percent, to $135.23 a barrel in electronic trading on the New York Mercantile Exchange. The contract traded at $135.01 a barrel at 11:17 a.m. London time. It earlier fell as much as 0.7 percent.

Brent crude oil for August settlement traded up 50 cents at $134.83 a barrel on London's ICE Futures Europe exchange.

The dollar's fall against the euro made commodities cheaper for buyers outside the U.S. The dollar was at $1.5511 per euro as of 11:13 a.m. London time, compared with $1.5574 earlier.

[frawin]

Front Month, August Crude Oil closed at $139.64 up $5.09, and Natural Gas Front Month July Closed at $13.13 up $0.352. A lot of today's increase was due to Rhetoric out of our old enemy Libya saying they may cut production. A cut in world production anywhere, even if it is a country we don't recieve crude from can have an impact on our NYMEX futures.
Unfortunately there were a lot of long contracts traded and it looks like it can go higher.
Frank

[Diane Amberg]

I'm glad we did take our trip when we did. We only paid more than $ 4.00 a few times, with the gas in MO. being the cheapest we saw anywhere.