Crude supplies, already low, to be further depleted

[takumi]

http://www.fxstreet.com/nou/noticies/afx/noticia.asp?pv_noticia=1095444496-9e32d306-35769

DALLAS (AFX) -- Oil and gas production in the Gulf of Mexico remains off line and tankers continued to sit idle offshore Friday, raising questions about how much further the nation's crude inventories will be depleted following Hurricane Ivan

Moreover, it set the market up for a classic supply-driven price squeeze

On Wednesday, the Energy Department reported a 7.1-million barrel drawdown in oil supplies for the week ended Sept. 10. As of the latest report, oil supplies stood at a seven-month low. The latest week's drop was about equal to the decline in supplies for the entire month of September, noted James Williams, an energy economist at WTRG Economics

Since U.S. supplies are sure to drop when the Energy Department and the American Petroleum Institute issue their separate inventory data reports on Sept. 22, traders hedged their bets and sent crude futures soaring on the New York Mercantile Exchange. Crude for October delivery was last $45.50, up $1.62 cents, or 3.7 percent. Also, October natural gas jumped 42.6 cents, or 9 percent, to $5.14 per million British thermal units


Phil Flynn, senior market analyst at Alaron.com, said he sees crude potentially heading toward $50 a barrel once the October crude contract breaks through $45

Oil and gas stocks were also broadly higher


It's different this time "The halt in production basically means that this hurricane, unlike the ones in the past, could have a longer-term impact on supplies,"

[Parche]

1. oil consumption

If people would get out of their stupid utility vehicles
SUV's then we would save and conserve

[puerco-bellies]

2. Up a $1.50 near term and following contracts today

Me like, me long.

[cliss]

3. Help me out here

Let's see...the world consumption is 80 million barrels per day. The US burns through 20 million barrels per day. That's 1/4 of the total. We make up 3.8% of the world's population. Hmmmmmm...I'd say that's over the top....

So a reduction of 7.1 million barrels equals = 11% of production. Yep - I'd say that qualifies as a problem.

[Massacure]

4. U.S. also manufactures things for other countries too.

It's mainly cars that spike our oil use.