Better Fill up today

[frawin]

Dec-08 Crude is trading at $68.325, up$0.825, Dec-08 Natural Gas is trading at $6.775, down $0.003 

[frawin]

Crude Oil Rises as Interest Rate Cuts May Spur Economic Rebound

By Grant Smith and Nesa Subrahmaniyan

Oct. 30 (Bloomberg) -- Crude oil advanced on speculation interest rate cuts in the U.S. and China may spur a global economic recovery and increase demand for fuels.

Oil rose above $70 a barrel for the first time in a week after the U.S. and China, the world's top two energy users, reduced rates yesterday. Stocks rallied around the world and U.S. index futures climbed after the rate cuts, aimed at boosting bank lending and economic growth.

``There's a good chance the rate cut will help the economy to grow again,'' said Wolfgang Kraus, chief energy and commodities trader at BayernLB in Munich. ``We've seen from the corporate side massive buying interest'' and ``that's normally a good indicator they see limited downside risk.''

Crude oil for December delivery climbed as much as $3.10, or 4.6 percent, to $70.60 a barrel on the New York Mercantile Exchange. It traded at $68.17 as of 10:31 a.m. London time. Yesterday, crude oil jumped $4.77, or 7.6 percent, to settle at $67.50 a barrel.

Oil prices, which have tumbled 52 percent since reaching a record $147.27 on July 11, are down 22 percent from a year ago.

Crude prices also climbed as the dollar fell to a one-week low against the euro. The U.S. currency slipped to $1.3048 per euro, the lowest since Oct. 21, from $1.2963 late yesterday.

Investors often purchase crude oil and other dollar-priced commodities when the U.S. currency drops because of their use as an inflation hedge.

Fed's Delivery

``The tight credit situation has made it hard for even good companies to fund their plans and the rate cuts could help to address that,'' said Anthony Nunan, assistant general manager for risk management at Mitsubishi Corp. in Tokyo. ``Equities are rebounding and that's filtering through to other markets.''

The MSCI World Index added 2 percent to 942.4 in London, advancing for a third day, the longest winning streak in two months.

Commodities such as gold and corn were buoyed by a drop in the U.S. dollar and a rebound in equities after borrowing costs were reduced to alleviate a credit freeze and spur growth.

Brent crude oil for December settlement increased as much as $2.88, or 4.4 percent, to $68.35 a barrel on London's ICE Futures Europe exchange, and last traded at $66. The contract yesterday gained $5.18, or 8.6 percent, to $65.47 a barrel.

Oil ministers from Iran and Venezuela said this week that OPEC will probably meet again before the group's next scheduled gathering in December to consider a second production cut.

OPEC Cut

The Organization of Petroleum Exporting Countries reduced its production target by 1.5 million barrels a day after meeting Oct. 24.

``OPEC's cut would probably be felt in the next few weeks and they would probably wait until the next meeting unless prices drop back again rapidly,'' Mitsubishi's Nunan said.

U.S. inventories of crude oil and distillate fuel, a category that includes heating oil and diesel, rose last week, an Energy Department report yesterday showed.

Crude oil stockpiles climbed 493,000 barrels to 311.9 million barrels in the week ended Oct. 24, the department said. A 1.55 million-barrel gain was forecast, according to the median of 12 analyst estimates before the report.


Last Updated: October 30, 2008 06:33 EDT

 
 

[frawin]

Below is an excerpt from yesterdays EIA Petroleum Inventory report, hopefully America will continue to reduce demand and increase energy sources of all kind.
Total products supplied over the last four-week period has averaged nearly 18.9
million barrels per day, down by 7.8 percent compared to the similar period last
year. Over the last four weeks, motor gasoline demand has averaged 8.9 million
barrels per day, down by 3.4 percent from the same period last year. Distillate
fuel demand has averaged nearly 4.0 million barrels per day over the last four
weeks, down by 5.2 percent from the same period last year. Jet fuel demand is
13.1 percent lower over the last four weeks compared to the same four-week period
last year.

[frawin]

Dec-08 Crude settled at $65.96, down $1.54 on the day, Dec-08 Natural Gas Settled at $6.431, down $0.347 on the day. 
Natural Gas storage report came out today, there was a little more build that expected and more than the historical build for this period.

[frawin]

Dec-08 Crude is trading at $63.425, down $2.535, Dec-08 Natural Gas is trading at $6.395, down $0.036 .

[frawin]

Crude Oil Is Poised for Record Monthly Drop as Demand Declines

Oct. 31 (Bloomberg) -- Crude oil fell in New York, poised for its biggest monthly drop since trading began in 1983, on concern that the decline in the U.S. economy will curb fuel demand in the world's largest energy user.

Oil retreated, taking this month's decline to 37 percent, after the U.S. Commerce Department said yesterday that gross domestic product contracted in the third quarter at the biggest annual pace since 2001. Showa Shell Sekiyu K.K., Royal Dutch Shell Plc's Japanese unit, will cut its crude processing by 7 percent during the fourth quarter on falling domestic demand.

``The outlook for demand remains weak while we wait for economic rescue measures to feed their way through the system,'' said Christopher Bellew, senior broker at Bache Commodities Ltd. in London. ``Even in emerging markets the growth there is likely to be lower than was previously expected.''

Crude oil for December delivery fell as much as $2.78, or 4.2 percent, to $63.18 a barrel. It was at $63.49 a barrel at 9:06 a.m. London time on the New York Mercantile Exchange. Oil's monthly decline may surpass February 1986 as the worst month ever, when it dropped 30 percent to $13.26 a barrel.

Prices have tumbled 56 percent from a record $147.27 on July 11 and are down 32 percent from a year ago. Futures dropped $1.54, or 2.3 percent, yesterday to settle at $65.96 a barrel.

Oil climbed more than $4 a barrel on Oct. 29, the biggest gain in a month, after the U.S. and China, the two biggest energy consumers, cut interest rates to spur economic growth. Prices also rose because the dollar fell the most against the currencies of six major U.S. trading partners since 1998.

Slowing Demand

Showa Shell said today it will process about 465,000 barrels a day from October to December. Nippon Oil Corp., Japan's largest refiner, said yesterday it will continue processing less crude than a year ago.

Monthly data for U.S. August fuel consumption, measured in terms of products supplied by refiners, dropped to 17.4 million barrels a day, according to the Petroleum Supply Monthly. That was down from 19.1 million barrels in August 2007.

Brent crude oil for December settlement fell as much as $3.07, or 4.8 percent, to $60.64 a barrel on London's ICE Futures Europe exchange. It was at $60.84 a barrel at 3:17 p.m. Singapore time. Prices have fallen 32 percent in the past year.

Crude oil may rebound next week on speculation that interest-rate cuts in the U.S. and China will boost fuel demand.





 
 

[frawin]

Dec-08 Crude settled at $67.81, up $1.85 on the day, Dec-08 Natural Gas Settled at $6.783, up $0.352 on the day. 

[frawin]

Dec-08 Crude is trading at $67.05, down $0.76, Dec-08 Natural Gas is trading at $6.72, down $0.063 . 

[frawin]

Oil Falls as Asian Import Cuts Heighten Demand Slowdown Concern

By Grant Smith

Nov. 3 (Bloomberg) -- Crude oil fell as reduced imports by Asian refiners reinforced concerns that a demand slowdown is spreading to emerging markets.

China Petroleum & Chemical Corp., Asia's biggest refiner, will process less crude at some plants because of falling fuel demand, its parent said today. South Korea imported 1.4 percent less crude oil in October as the global credit crisis sent shockwaves through Asia's fourth-biggest economy.

``Demand growth in the emerging markets seems to be slowing down massively,'' said Eugen Weinberg, an analyst at Commerzbank AG in Frankfurt. ``The outlook is disturbingly weak and alarming for commodity traders and investors.''

Crude oil for December delivery dropped as much as $1.27, or 1.9 percent, to $66.54 a barrel in electronic trading on the New York Mercantile Exchange. The contract traded at $67.06 a barrel at 10:16 a.m. London time.

Oil climbed 5.7 percent last week, the first gain in five weeks, as the U.S. and China lowered interest rates to prop up economic growth. Crude has fallen 53 percent from its record $147.27 a barrel on July 11.

The United Arab Emirates has notified customers that they will receive less crude as a result of OPEC's Oct. 24 resolution to cut production by 1.5 million barrels a day, Oil Minister Mohamed al-Hamli told reporters in Abu Dhabi today.

Iran will cut crude oil sales to Total SA, Europe's third- largest oil company, by some 70,000 barrels per day, Iranian oil Minister Gholamhossein Nozari said on Nov. 2. Nigeria's national oil company announced shipment cuts of 5 percent in November and December last week.

Algeria Meeting

The Organization of Petroleum Exporting Countries, producer of more than 40 percent of the world's crude, is next due to meet on Dec. 17 in Algeria.

``Most market participants expect that oil supplies will tighten up in the months ahead,'' said Victor Shum, senior principal at energy consultant Purvin & Gertz Inc. in Singapore.

Brent crude oil for December settlement dropped as much as $1.71, or 2.6 percent, to $63.61 a barrel on London's ICE Futures Europe exchange. It traded at $64.18 at 9:42 a.m. in London.


 
 

[frawin]

Dec-08 Crude settled at $63.91, down $3.90 on the day, Dec-08 Natural Gas Settled at $6.838, up $0.055 on the day.