Better Fill up today

[frawin]

November-09 Crude is trading at $74.90, up $0.75, November-09 Natural Gas is trading at $4.60, up $0.012.


November crude traded above $75.00 overnite, $75.00 was/is a technical barrier.

[frawin]

Oil Jumps Above $75 to One-Year High on Optimism About Demand



By Grant Smith and Yee Kai Pin

Oct. 14 (Bloomberg) -- Crude oil topped $75 a barrel in New York, its highest price in a year, on growing confidence that the global economic recovery is taking shape.

Oil climbed for a fifth day as the dollar declined and equities advanced around the world. Crude imports by China, the fastest-growing energy user, were 15 percent higher in September than a year ago, data showed today. The Organization of Petroleum Exporting Countries raised its 2010 global demand forecast yesterday on expansion in emerging economies.

R20;People are now getting a semblance that the recovery they've been talking about is actually taking place," said Amrita Sen, an analyst with Barclays Capital in London. "It's very much a demand-led rally. ChinaR17;s crude imports have been very strong, and it's positive on a macro level as well."

Crude oil for November delivery rose as much as $1, or 1.4 percent, to $75.15 a barrel in electronic trading on the New York Mercantile Exchange. That's the highest since Oct. 21, 2008. The contract traded at $74.71 at 9:37 a.m. London time.

Futures have gained 68 percent this year as the dollar's decline bolsters the investment appeal of commodities including crude and gold, which hit a record for a second day. The U.S. currency touched $1.4905 per euro, the weakest since August 2008. Gold for immediate delivery gained as much as 0.6 percent to $1,070.90 an ounce.

R20;This rally today really was prompted by two things: one, the revised demand forecast from OPEC, and the other, the continued weakening of the U.S. dollar," said Victor Shum, a senior principal at energy consultants Purvin & Gertz Inc. in Singapore. "The world is simply getting less negative in terms of demand growth."

Oil Stockpiles

European and Asian shares gained and U.S. stock-index futures advanced after Intel Corp.'s sales forecast beat analysts' estimates and the decline in ChinaR17;s exports slowed.

ChinaR17;s crude-oil imports climbed 15 percent to 17.2 million tons last month from a year earlier, while exports reached 390,000 tons, according to the customs bureau. Imports gained 8.2 percent to 146 million tons in the first nine months.

Oil rallied even as stockpiles in the U.S., the world's largest energy consumer, likely increased. Commercially held crude oil inventories rose by 1.15 million barrels in the week to Oct. 2, according to the median of estimates from 12 analysts polled by Bloomberg News. Gasoline stockpiles probably climbed 1 million barrels, the survey showed.

The Energy Department will release its weekly report tomorrow at 11 a.m. in Washington, a day later than usual because of the Columbus Day holiday on Oct. 12. The industry- funded American Petroleum Institute will put out its data today.

Demand Upgrades

OPEC, which pumps 40 percent of the world's oil, raised its forecast yesterday for global demand for a second month. The 12- member group predicted consumption next year will rise 0.8 percent to 84.93 million barrels a day, led by emerging markets. The International Energy Agency increased its demand projection on Oct. 9 for a third month.

R20;ThereR17;s a lot of concern about OPEC compliance, but their production is still down about 3 million barrels a day year-on- year," said Barclays's Sen. "Countries that have spare capacity are the policy stalwarts, so we're not going to see uncontrolled slippage."

Brent crude oil for November settlement rose as much as $1.05, or 1.5 percent, to $73.45 a barrel on the London-based ICE Futures Europe exchange. It was at $72.89 a barrel at 9:37 a.m. in London. The more actively traded contract for December, which moves to the front month on Oct. 16, was at $73.70 a barrel.

[frawin]

November-09 Crude settled at $75.18, up $1.03 on the day, November-09 Natural Gas settled at $4.436, down $0.152 on the day.

[frawin]

November-09 Crude is trading at $75.05, down $0.13, November-09 Natural Gas is trading at $4.395, down $0.041.

[frawin]

Oil Little Changed Near One-Year High Before Report on Supplies


By Grant Smith

Oct. 15 (Bloomberg) -- Crude oil was little changed near a one-year high in New York before a report forecast to show that U.S. crude inventories rose.

Oil earlier climbed to $75.96 a barrel, its highest since October 2008. Crude stockpiles probably expanded by 1 million barrels last week, while distillates, a category that includes heating oil, fell by 100,000 barrels, according to a Bloomberg survey before today's report from the Energy Department.

R20;On the fundamental side nothing points to higher prices," said Gerrit Zambo, a trader with Bayerische Landesbank in Munich. "I don't think demand is going to pick up to the extent that we'll get any physical shortages. Overall market sentiment is driving oil.

Crude oil for November delivery traded 10 cents higher at $75.28 a barrel in electronic trading on the New York Mercantile Exchange as of 11:21 a.m. London time. Prices have gained 5 percent this week.

TodayR17;s peak of $75.96 a barrel, the highest intraday price since Oct. 20, 2008, was driven by a decline in the dollar and a worldwide advance in equity markets. Yesterday, the American Petroleum Institute reported that U.S. crude oil and gasoline stockpiles dropped last week.

The Dow Jones Industrial Average broke 10,000 yesterday for the first time in a year on better-than-estimated earnings at JPMorgan Chase & Co. and Intel Corp.

Crude Stockpiles

U.S. crude oil stockpiles fell 172,000 barrels to 339.2 million last week, according to the industry-funded American Petroleum Institute. Gasoline inventories declined 2.66 million barrels to 210.4 million, its report showed.

The Energy Department will release its Weekly Petroleum Status Report at 11 a.m. in Washington, a day later than usual because of the Columbus Day holiday Oct. 12.

The Energy Department will post a 100,000-barrel drop in distillate fuel stockpiles in the week to Oct. 9, according to the median estimate from 14 analysts surveyed by Bloomberg News. Inventories including diesel and heating oil have risen seven weeks to 171.8 million barrels, the highest since January 1983.

Crude oil stockpiles probably rebounded 1 million barrels from the previous week's decline, based on the survey. Nine analysts predicted an increase while four said there was a drawdown. Gasoline inventories climbed 1.13 million barrels, the survey showed.

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

U.S. Dollar

The dollar was at $1.4916 per euro as of 11:01 a.m. London time after falling as low as $1.4968 per euro, the weakest since August 2008.

R20;The U.S. dollar knows only one direction and that is helping the oil price," said David Moore, a commodity strategist at Commonwealth Bank of Australia Ltd. in Sydney. "It may have also got a boost from the API data."

Brent crude oil for November settlement rose as much as 76 cents, or 1 percent, to $73.86 a barrel on the London-based ICE Futures Europe exchange. The contract, which expires today, was unchanged at $73.10 a barrel at 11:04 a.m. local time. December futures were at $73.93 a barrel.

[frawin]

November-09 Crude settled at $77.58, up $2.40 on the day, November-09 Natural Gas settled at $4.48s, up $0.046 on the day.


The Eia/Doe Inventory report came out today and product Inventories were down considerably more than expected. This is an excerpt from the report:

U.S. commercial crude oil inventories (excluding those in the Strategic
Petroleum Reserve) increased by 0.4 million barrels from the previous week. At
337.8 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
decreased by 5.2 million barrels last week, and are just above the upper limit
of the average range. Finished gasoline inventories decreased but blending
components remained unchanged last week. Distillate fuel inventories decreased
by 1.1 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 decreased by 5.8 million barrels last week,
and are above the upper limit of the average range for this time of year.

[frawin]

Nov-09 settled at $78.53, up $0.95 on the day, the back months traded in the $80.00+ range, Nov-09 Natural Gas settled at $4.781, up $0.299 on the day, the back months traded in the $6.00+ range.

Dale, I hope you filled up earlier in the week.
I have been on the road all day and just got to where I could post today's market.

[Dee Gee]

I got $75 worth of gas last week when the price was 2.34 and it is now at 2.53 and going up.  I glad the lawn mowing is about over for the year.

[frawin]

Nov-09 Crude is trading at $78.20, down $0.33, Nov-09 Natural Gas is trading at $4.81, up $0.029.

[frawin]

I noticed when we got back to Bartlesville last night, gas prices were $2.28 and $2.29.

Crude Is Little Changed After Reaching One-Year High Above $79


By Grant Smith and Ann Koh

Oct. 19 (Bloomberg) -- Crude oil was little changed after reaching a one-year high as rising equity markets stoked confidence that energy consumption will rebound.

Oil advanced for an eighth day, its longest winning streak since July, as the dollar weakened against the euro, attracting investors seeking an inflation hedge to crude. U.S. supplies of distillates fuels such as diesel and heating oil fell from a 26- year high in the week ended Oct. 9, the Energy Department reported last week.

“Optimism from equities still seems to be channeling into the oil market,” said Thina Saltvedt, an analyst at Nordea Bank AB in Oslo. “There has been an increase in petrol demand, the macro figures have been coming out okay, and the colder winter should help with heating demand.”

Crude oil for November delivery was at $78.70 a barrel, up 17 cents, in after-hours electronic trading on the New York Mercantile Exchange at 10 a.m. London time. Prices earlier rose as much as 52 cents, or 0.7 percent, to $79.05, the highest since Oct. 15, 2008.

The contract, expiring tomorrow, rose 1.2 percent to $78.53 a barrel on Oct. 16 after a report showed U.S. industrial production last month climbed more than economists forecast. The more widely held December contract was at $79.29 a barrel, up 27 cents.


Europe’s Dow Jones Stoxx 600 Index added 0.8 percent at 9:18 a.m. in London. The U.S. currency traded at $1.4926 against the euro, compared with $1.4828 earlier.

Last week, oil futures posted their biggest weekly gain in almost two months after the U.S. Energy Department said gasoline stockpiles fell by 5.2 million barrels.

U.S. Inventories

Oil prices have increased 23 percent in the past three months even as U.S. fuel stockpiles climbed. Prices rose as a recovery in equity markets emboldened investors, and the sliding U.S. dollar prompted buying of commodities.

U.S. distillates supplies, including diesel and heating oil, fell from a 26-year high in the week ended Oct. 9, the Energy Department reported last week. At 170.7 million barrels, they were 30 percent above the five-year average for the period.

“Inventory levels are still relatively high,” said David Moore, a commodity strategist at Commonwealth Bank of Australia Ltd. in Sydney. “Ultimately we’ll see oil prices drifting lower again, maybe even under $70 a barrel, because the market is relatively well supplied.”

Brent crude oil for December settlement rose as much as 47 cents, or 0.6 percent, to $77.46 a barrel on the London-based ICE Futures Europe exchange, and was at $77.19 at 9:35 a.m. London time.

‘Bounce Back’

Reports from the U.S. Department of Energy have had mixed results for refined products, Peter Beutel, president of trading adviser Cameron Hanover Inc. in New Canaan, Connecticut, said in a note to clients. “If this week follows historical trends, we should see a bounce back up in both crude oil imports and in refinery utilization.”

Hedge-fund managers and other large speculators increased their bets on rising oil futures to a nine-month high last week, according to U.S. Commodity Futures Trading Commission data.

Speculative long positions, or bets prices will rise, outnumbered short positions by 68,836 contracts on the New York Mercantile Exchange, the Washington-based commission said in its Commitments of Traders report. Net-long positions rose by 18,830 contracts, or 38 percent, from a week earlier.

“The market is pricing in a very big upturn in demand in order to draw down all that product, and I just think it’s a little optimistic at this point,” said Ben Westmore, an energy and minerals economist at National Australia Bank Ltd. in Melbourne.