Oil Prices Slide Below $53 a Barrel

[CountAllVotes]

Oil Prices Slip Below $53 a Barrel As U.S. Reports a Large Build in Crude Oil Inventories


Oil prices dropped almost $2 a barrel Wednesday after the U.S. government reported a large build in crude oil inventories.
Light, sweet crude for the June contract fell $1.80 to $52.40 a barrel in afternoon trade on the New York Mercantile Exchange, where prices dipped as low as $52.15.

<snip>


The U.S. Energy Department said Wednesday that the inventories of crude oil in the largest consuming nation grew by 5.5 million barrels last week to 324.4 million barrels, or 9 percent above year ago levels.

more here:


http://biz.yahoo.com/ap/050427/oil_prices.html?.v=13

Slap me if I'm stupid! I thought yesterday "they" were saying that oil is about to run out NEXT year. Now we have Oil Prices Slip Below $53 a Barrel As U.S. Reports a Large Build in Crude Oil Inventories .

That's right, keep those lies a comin'!

:dem:

[Teaser]

1. Who said oil is about to run out next year?

No oil analyst on the planet believes that.

[CountAllVotes]

2. yesterday it was reported

see this thread.

http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=102&topic_id=1422103

:dem: :kick:

[eallen]

3. Read it again. That's now what it says. "Peak" not "trough."

Be careful, also, not to confuse timescales. The fact that oil has slid this week because current inventories are higher than expected in no way conflicts with the fact that oil is still 50% higher than a couple of years past. It wasn't long ago that people were worried that oil would break the $50/bbl mark. Now, everyone is ecstatic when it slides down to the low 50s. It might slide down to the $40s. That doesn't mean it won't be $80s two years from now.

[CountAllVotes]

7. total fraud/manipulation IMO

and yeah, the prices will continue to skyrocket, you can bet on that one! Total pile o'shit real or not!

:dem: :kick:

[Roland99]

4. But...but...but...we need more oil on the market! * said so in Crawford!

Why else were he and the Prince holding hands?


See???


Bush Presses Saudis to Produce More Oil
http://abcnews.go.com/Politics/wireStory?id=700832


Saudis tell him tough luck

No extra oil as Saudis cite full capacity
http://www.abc.net.au/worldtoday/content/2005/s1353684.htm


Oh wait...nevermind. Our inventories are fine after all!!

http://biz.yahoo.com/ap/050427/oil_prices.html?.v=13

[cliss]

5. A blip on the radar.

Think of it as an oasis in the desert. A few palm trees. Some coconuts; that's all.

We are INEXORABLY headed for 1) HIGHER GAS PRICES, 2) an increasing shortage of oil, and 3) INCREASED instability in the oil-producing regions.

[hatrack]

6. This, too, shall pass away nt

.

[enki23]

8. they're practically giving it away

.

[Roland99]

9. .

:rofl:

[fedsron2us]

10. Lots of double speak from the media on this topic

Associated Press
Oil Prices Slide More Than $2.50 a Barrel

Oil Prices Slide More Than $2.50 a Barrel on Large Buildup in Domestic Crude Inventories

Oil prices dropped more than $2.50 a barrel Wednesday after U.S. government data showed a large build in domestic crude inventories and President Bush urged construction of new oil refineries.

http://biz.yahoo.com/ap/050427/oil_prices.html?.v=16

I would have thought expanding refinery capacity would actually increase demand for oil. As for inventory levels, they have been growing for some months yet the price of oil has continued to rise. I do not think it alone has triggered the sell off. It seems the market may have got spooked by the slump in durable goods orders, weak consumer confidence numbers and the signals from Europe and Japan that suggest the world economy is slowing fast. The Baltic Dry Index which measures the charter cost of bulk carriers to move other dry commodities like coal, iron ore, wheat etc is also well down from its December 2004 peak. This is normally a sign that global demand is easing.