Oil Prices Fall to $45 as Iraq Oil Flows

[Nambe]

LONDON (Reuters)

Oil prices fell more than a dollar to $45 on Tuesday, in a third day of losses as a more optimistic Iraq export picture helped unwind some of the supply worries that have lifted the market to historic levels.

U.S. light crude fell $1.05 to $45.00 a barrel, slipping further from last week's $49.40 peak, which was the highest level in 21 years of New York oil futures trading. London Brent crude lost 81 cents to $42.22 a barrel.

The downturn followed a failure to hit the psychological $50 mark in New York, together with the resumption of full tilt Iraqi exports from the south and restored flows in the north.

Some analysts were starting to wonder whether prices have peaked, after this year's near 40 percent gains. ..

[hatrack]

1. As Iraqi oil flows for now

Tomorrow? We'll see, but it is kind of tough to run an oil industry when you're in the middle of a civil war.

[Maple]

2. That won't

last long.

[still_one]

3. Interesting, gas prices went up 3 cents at the pump where I live

Remember when 30 dollars per barrel was considered excessive. It is now 45 bucks and they say it is great news!

DOUBLE SPEAK

[Newsjock]

6. Up 6 cents overnight

in central California. Here it comes, kids.

[trogdor]

9. They have to shift production...

...away from gasoline to produce heating oil to keep my ass from freezing to death in the Northeast this winter. I don't even want to know what my oil bills will be like.

[tandot]

4. Of course we didn't invade Iraq for the Oil. How dare anyone say that!

:crazy:

[cthrumatrix]

5. it's the play on words... Iraq oil now free'd thanks to our servicemen

which is a bunch of hooey. It was flowing before THEY screwed it up.

We have ZERO understadning of truth when it comes to oil and the prices charged. Just the way they like it.

[BJ]

7. 45 bucks a barrel! Now I can get a Hummer!!

[reprobate]

8. I won't be surprised at $4 a gallon this time next year or before.

Peak oil, even if no one will admit to it.

[trogdor]

10. Funny thing...

...you'd almost SWEAR the Bushies were saving this event for maximum effect so they look like big goddam heroes.

[MurrayDelph]

12. you mean like they

might all get together for some sort of self-congratulatory
convention to take credit for this all?

[Snazzy]

11. All the pipelines opened

Southern main one had been closed since Aug. 9., opened Monday.

http://edition.cnn.com/2004/BUSINESS/08/23/iraq.oil.reut/

Northern Turkish pipeline opened Friday.

http://www.reuters.com/financeNewsArticle.jhtml?type=businessNews&storyID=6058059

I doubt the security situation has improved on the pipelines, this is just to ease prices for RNC--disaster waiting to happen.

There was also an after the markets closed story about an attack on Friday on the Southern terminal, which now they say didn't happen.

Also I wonder, not knowing much about oil futures, if changing the month just brings its own optimism. They were selling September contracts Friday, now we're in October.

(South African mercs provide security for the S. pipeline).

[maxsolomon]

13. yay! its all been worth it!

blood for oil works for america!

[masshole]

14. so this is the deal eh?

Oil prices will remain high until the Iraqi oil starts flowing...
A little pocketbook incentive to rally the public to accept a longer stay in Iraq.