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Purveyor

(29,876 posts)
Wed May 30, 2012, 11:34 AM May 2012

Oil Tumbles to Seven-Month Low on U.S. Supply Glut

Source: Bloomberg

By Mark Shenk - 2012-05-30T15:19:01Z

Oil tumbled to a seven-month low on speculation that U.S. crude stockpiles climbed to the highest level since 1990 and as the euro weakened on concern that the debt crisis will overwhelm Spain.

New York futures fell as much as 3.6 percent and Brent oil traded in London dropped below $104 a barrel for the first time this year. An Energy Department report tomorrow is projected to show that U.S. supplies rose 1 million barrels to 383.5 million last week, according to analysts surveyed by Bloomberg. The euro fell versus the dollar as Spain’s default risk increased.

“We’re looking at a build of another million barrels to a 22-year high,” said Addison Armstrong, director of market research at Tradition Energy in Stamford, Connecticut. “Given how high inventories are and how weak the economy looks, no wonder we’re trading lower. We’re going to probably continue seeing dollar strength, which will keep the pressure on oil.”

Oil for July delivery fell $2.82, or 3.1 percent, to $87.94 a barrel at 11:17 a.m. on the New York Mercantile Exchange. Futures reached $87.49, the lowest intraday level since Oct. 24. Prices are down 16 percent this month, the biggest drop since December 2008.

MORE...

http://www.bloomberg.com/news/2012-05-30/brent-oil-falls-below-105-on-u-s-supply-glut-europe-co.html

Read more: Link to source

18 replies = new reply since forum marked as read
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Oil Tumbles to Seven-Month Low on U.S. Supply Glut (Original Post) Purveyor May 2012 OP
I forget...does Obama get credit for this? eom Frustratedlady May 2012 #1
It's only fair, no? Stuckinthebush May 2012 #8
Of course they won't. You should read my local paper. GoCubsGo May 2012 #17
And Yet ... 1StrongBlackMan May 2012 #2
I wonder how many frac companies Arctic Dave May 2012 #3
It's still around Phlem May 2012 #4
That's odd, we're still paying 4.35 a gal in Ca. demosincebirth May 2012 #5
We have a glut because Pab Sungenis May 2012 #6
It's all Obama's fault liberal N proud May 2012 #7
I remember... RitchieRich May 2012 #9
gouging us Kyad06 May 2012 #10
It Will Get There bl968 May 2012 #11
In the $3.80s by me but there has ALWAYS been a glut BumRushDaShow May 2012 #12
The supplies of 'refined' fuels are still rigged to keep prices high. Forget.... dmosh42 May 2012 #13
dropped close to 40ct in the last three weeks where i live madrchsod May 2012 #14
When gas prices are high, it's Obama's fault. When oil drops and gas prices are low, truthisfreedom May 2012 #15
Funny.. just a month or so ago the media was all hyper about how high gas prices.. DCBob May 2012 #16
Gas prices need to be low for the harvesters. Food prices are where inflation must be kept in check may3rd May 2012 #18

Stuckinthebush

(10,865 posts)
8. It's only fair, no?
Wed May 30, 2012, 11:57 AM
May 2012

If he gets the blame when it goes up he should get the credit when it goes down

I'm sure the extreme right won't see it that way though.

GoCubsGo

(32,149 posts)
17. Of course they won't. You should read my local paper.
Wed May 30, 2012, 08:49 PM
May 2012

They are twisting themselves in knots trying to explain why lower prices have nothing to do with him, after blaming him for the higher prices. It would be hilarious if it weren't so goddamn pathetic.

 

Arctic Dave

(13,812 posts)
3. I wonder how many frac companies
Wed May 30, 2012, 11:48 AM
May 2012

will go bust if prices keep falling.

Guess who gets to clean up the mess they'll leave.

Phlem

(6,323 posts)
4. It's still around
Wed May 30, 2012, 11:48 AM
May 2012

$4.30 to $4.50 for 89% octane in Washington State.

So much for the free market.

-p

 

Pab Sungenis

(9,612 posts)
6. We have a glut because
Wed May 30, 2012, 11:54 AM
May 2012

Obama won't drill baby drill, and that's what's driving oil prices down, which is what's driving gas prices up.

(only because we don't have a "Fox News Says So" smilie)

liberal N proud

(60,419 posts)
7. It's all Obama's fault
Wed May 30, 2012, 11:55 AM
May 2012

It was his fault when the prices went up, so it must be his fault when the go down.



RitchieRich

(292 posts)
9. I remember...
Wed May 30, 2012, 11:59 AM
May 2012

it was probably 2004, one of my friends who was a commodities broker was telling me that when it broke $50 a barrel, he made 20k that month, making sales phone calls to random people.

bl968

(360 posts)
11. It Will Get There
Wed May 30, 2012, 12:39 PM
May 2012

I have seen the price as low as $3.17 a gallon in Tennessee, and it's continuing to drop rapidly.

BumRushDaShow

(131,735 posts)
12. In the $3.80s by me but there has ALWAYS been a glut
Wed May 30, 2012, 01:20 PM
May 2012

so much so that they were closing refineries, blowing up refineries or having mysterious fires at refineries, dumping oil at sea, suddenly having huge leaks in oil pipelines, parking tankers and tankers and tankers of crude in every available space they could find at ports around the world yet....

It should be down below $30/bbl. I only hope they don't suddenly run it up in October again right before the election.

dmosh42

(2,217 posts)
13. The supplies of 'refined' fuels are still rigged to keep prices high. Forget....
Wed May 30, 2012, 02:05 PM
May 2012

the "Free Market" bullshit!

madrchsod

(58,162 posts)
14. dropped close to 40ct in the last three weeks where i live
Wed May 30, 2012, 02:20 PM
May 2012

one gasoline company is offering 5ct a gallon off if you pay cash.

truthisfreedom

(23,200 posts)
15. When gas prices are high, it's Obama's fault. When oil drops and gas prices are low,
Wed May 30, 2012, 02:28 PM
May 2012

it's market forces at work. You won't hear Rmoney mention oil for a while.

DCBob

(24,689 posts)
16. Funny.. just a month or so ago the media was all hyper about how high gas prices..
Wed May 30, 2012, 07:39 PM
May 2012

during the summer months were going to take Obama down since many would blame him. Now as prices plummet we hear nothing from them.

 

may3rd

(593 posts)
18. Gas prices need to be low for the harvesters. Food prices are where inflation must be kept in check
Wed May 30, 2012, 10:32 PM
May 2012

The trade off in low oil crude prices is on the oil supplier countries.....who may have to pump even MORE to keep revenues steady or simply, cut off the tap which hurts their own welfare in the very very short run
But I'm not going to shed a tear for that side of the market share.

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