Crude stockpiles reach largest surplus in 19 years

[DainBramaged]

Oil prices were flat Wednesday as reports showing a drop in industrial production and a massive crude surplus did little to affect investors’ already gloomy outlook on the economy.

Benchmark crude for May delivery dropped 16 cents to settle at $49.25 a barrel on the New York Mercantile Exchange. In London, Brent prices lost 17 cents to settle at $51.75 a barrel on the ICE Futures exchange.

Traders, who’ve watched oil inventories grow for months, are increasingly swayed by equities markets to get a read on future demand, analysts said. Crude prices followed Wall Street as equities markets rose and then fell on Wednesday.
“Yes, we’re swimming in oil,” said Phil Flynn, an analyst at Alaron Trading Corp. “But the market isn’t shaken by these big supplies anymore. We’ve had them for a while.”

The Energy Information Administration said crude oil inventories rose by 5.6 million barrels last week as demand for gasoline and other fuels continued to slide. That was more than twice what analysts expected, and the total of 366.7 million barrels now in storage is the most held since Sept. 7, 1990, according to the EIA.


http://www.msnbc.msn.com/id/12400801/

[Tandalayo_Scheisskopf]

1. They are propping up the prices with terptitude.

Give it a little time. They will crater.

[DainBramaged]

3. 'THEY' are running out of places to store the oil

I read where so many tankers are being used as floating oil storage that there are literally no more tankers available to ship oil, and no more is needed here. The propping up of the price of oil is criminal.

[Tandalayo_Scheisskopf]

9. What continues to amaze me...

Is the fact that right here, if one is intrepid enough to strip away all the bullshit scare rhetoric from last summer, that the frantic predictions of economic doom and a new Dark Ages were...ahem...a bit off the mark.

On the other hand, the evidence now should be all the evidence we need to re-double our efforts to bring on every credible form of alternative energy we can. We got those bastards to where they have painted themselves into a corner, because Oil Field Trash ain't all that smart. Let's deliver the killing blow and be done with them, once and for all.

[Wapsie B]

2. Drill Drill Drill!

Sorry, flashbacks from a Palin rally.

[DainBramaged]

4. Drill Baby, Drill!

http://www.youtube.com/watch?v=xhvRQyRdVEI


That fell flat on it's collective ass.

[liberal N proud]

5. That means they will jack the price up at the pump

Because the supply is up and consumption is down.

[DainBramaged]

6. Wholesale gas is at $1.45 a gallon, it's stuck and won't be going up

when the supply is at dangerously high supply levels, they HAVE to lower the price to get people to help reduce the surplus.

It would be great to see the Saudi empire collapse.

[liberal N proud]

8. Paid $1.86 at the pump last week

This week I am paying $2.05

They jack the price just to nail travelers. Peak travel season is coming soon.

[depakid]

10. Oh, it'll go up alright- it'll spike up "nicely"

if and when the world economy starts improving- the demand curve will shift back "to the right," with supplies plateued and then falling- until there demand destruction yet again.

So enjoy the cheap petro prices while you can- just don't get used to them.

[ChairmanAgnostic]

7. hey, shit happens when you have a depression. CAUSED BY big oil,

actually. Their greed was so fucking bad, that they killed their victim. Of course, they were driven by greed, comparing their income to Wall street, and between the two, Solomon's child was not only sliced, diced, chewed in half, Osterized, chopped, minced, mashed, mauled, and more, they killed the critter upon which they used to feast. Us.