Better Fill up today

[frawin]

This is a daily report I recieve from a very reputable source. I continue to be amazed that OPEC is talking about cutting production, the high price of energy is the main cause of the World Wide Economic Crisis. In their Greed and disdain for the West they are killing the economies that buy their only export.

Crude
WTI crude lost $2.56 per barrel to $78.63 on Tuesday on concerns that the economy is sliding into recession. Crude futures fell along with equities as a massive bank rescue package
failed to ease concerns about corporate profits, an indication of weaker demand for energy. Downside risk globally is increasing and in the US, negative GDP growth is likely next year
Iran's OPEC governor called for cooperation among oil producers to create balance between supply and demand. Lloyd's Marine Intelligence Unit reported seaborne exports fell
600,000 bbl/day in September, 840,000 bbl/day from Gulf suppliers. WTI resistance is $82.40, then $83.45, support is $73.25, then $68.90. The National Weather Service 8-14 day foreca
is calling for above normal temps for the upper Midwest and western third of the US, with seasonal or below temperatures for part of the Southwest, GC and East.
Natural Gas
Natural gas futures traded up on Tuesday as traders looked at gas as oversold and cooler weather fueled a strong cash market. The November contract gained 3.9 cents to close at
$6.73/MMBtu after trading between $6.64 and $ 6.84. The MMS reported that 37%, or 2.74 Bcf, of GoM production remain shut in, down from 38% on Friday. The EIA data shows 3.2 Tcf
in storage is 3.5% below last years level and 2% above the 5 yr average. The expectations for Thursday's injection report range from 73 Bcf to 83 Bcf, vs. the 5 yr average for the same
time of 63 Bcf. Natgas resistance is $6.895, then $6.935, support is $6.64, then $5.585. The National Weather Service 8-14 day forecast is calling for above normal temps for the upper
Midwest and western third of the US, with seasonal or below temperatures for part of the Southwest, GC and East.

[frawin]

Nov-08 Crude settled at $74.54, down $4.09 on the day, Nov-08 Natural Gas settled at $6.592, down, $0.135 on the day.   

[frawin]

Nov-08 Crude is trading at $72.025, down $2.515, Oil traded as low as $71.225 in overnite trading, Nov-08 Natural Gas is trading at $6.50, down $0.092, Natural Gas Traded as low as $6.435 in overnite trading.   

[frawin]

Nov-08 Crude settled at $69.85, down $4.69 on the day, Nov-08 Natural Gas settled at $6.703, up $0.111 on the day. 
One must wonder how long we'll be so comfortably supplied with so many
majors cutting production and capex. Depletion rates for nat gas wells are hardly a straight line.

[Warph]

Gas has dropped to $3.03 here in Surprise.... still too high.  Its not dropping here at the gas pumps percentage wise like it has on the stock market. 

[frawin]

Nov-08 Crude is trading at $71.00, up $1.15, Nov-08 Natural Gas is trading at $6.855, up $0.152. 

[frawin]

Oil Rises From 13-Month Low on Speculation OPEC Will Cut Supply

By Alexander Kwiatkowski

Oct. 17 (Bloomberg) -- Crude oil advanced from a 13-month low on speculation OPEC will announce production cuts at a meeting next week.

Oil rallied after OPEC said it brought forward to next week a November meeting to discuss output levels, raising speculation the group will slash production to stem a price slump. Oil has tumbled more than 50 percent since reaching a record $147.27 in July as the worst financial crisis since the 1930s threatens to push the world into a recession, curbing fuel demand.

``With an oil price at $70 a barrel, OPEC members will push for a cut of at least 1 million barrels a day,'' said Rob Laughlin, senior broker at MF Global Ltd. in London. ``Anything less would be worthless in terms of the current crisis in the demand outlook.''

Crude oil for November delivery rose as much as $3.17, or 4.5 percent, to $73.02 a barrel, and traded at $70.98 at 12:12 p.m. London time on the New York Mercantile Exchange.

Yesterday, it fell $4.69, or 6.3 percent, to $69.85 a barrel, the lowest settlement since Aug. 23, 2007.

The Organization of Petroleum Exporting Countries, which supplies more than 40 percent of the world's oil, will likely reduce oil output by 1 million barrels a day at next week's meeting to check the drop in prices, Qatari Oil Minister Abdullah al-Attiyah said.

``It will be one million, or more,'' he told Qatar's Al- Jazeera television channel. ``Prices have fallen a lot and we need to take measures.''

OPEC Supplies

OPEC oil supplies fell 3.8 percent in September to 31.8 million barrels a day, according to revised data from Geneva- based consultants PetroLogistics Ltd. The amount declined from 33.05 million barrels in August because of lower sales by Saudi Arabia and Iran, company founder Conrad Gerber said by e-mail yesterday.

Preliminary estimates from PetroLogistics had indicated a reduction in September supply of 2.4 percent to 32.6 million barrels a day.

``I don't think OPEC will cut by more than 1 million barrels in October, only because there is another meeting in December,'' at which they will probably crimp production again, said Hannes Loacker, analyst at Raiffeisen Zentralbank Oesterreich in Vienna. ``The problem now is very, very weak demand data.''

U.S. fuel demand averaged about 18.6 million barrels a day during the past four weeks, the lowest since June 1999, according to a weekly supply report from the Energy Department, released yesterday. The U.S. consumes 24 percent of the world's oil.

U.S. oil supplies rose 5.6 million barrels to 308.2 million barrels last week, the department said. Crude oil inventories were forecast to rise 2.6 million barrels, according to the median of analyst estimates in a Bloomberg News survey.

Brent crude oil for December settlement rose as much as $2.76, or 4.1 percent, to $70.60 a barrel on London's ICE Futures Europe exchange. It was at $68.60 a barrel at 11:54 a.m. London time.






 
 

[Catwoman]

Gas was 2.39 here today...I can't believe it...I wonder how long this downward trend will last.

[srkruzich]

You know similar thing happened in the 80's when reagan deregulated the gas prices.  It skyrocketed upwards and after a while it settled  back down to around 90 cents a gallon and stayed that way around 1.00 a gallon til around 2004.

[jensarlou]

Here in Macclenny it dropped 10 cents from Sat. morn. to Sat. evening.  $2.95 to $2.85.  To bad I filled up Sat. morn.