Oil recovers some ground (CNN/Money)

[eppur_se_muova]

Crude prices slip, then climb back above $70 a barrel after EIA report reveals surprising jump in gasoline, oil, but supply fears linger.

By David Ellis, CNNMoney.com staff writer
May 10, 2006: 12:21 PM EDT

NEW YORK (CNN/Money) - Oil prices bobbed above and below $70 a barrel Wednesday, then climbed higher after a government report revealed a surprising build in both gasoline and crude inventories.

U.S. light sweet crude for June delivery fell as much as $1.04 and was down 29 cents to $70.40 in late morning trade. Just before the Energy Information Administration (EIA) released its report, the contract was down 14 cent at $70.55.

In the previous session, crude prices climbed 92 cents to close at $70.69 a barrel.

The EIA reported that crude supplies climbed by 300,000 barrels from last week, putting U.S. crude oil inventories at their highest level since May 1998. A survey by Reuters had anticipated a decline of 600,000 barrels.
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more: http://money.cnn.com/2006/05/10/markets/oil_eia/index.htm

[Javaman]

1. And yet prices at the pump still go up....funny how that works...

oil goes up, the price at the pump go up right away, yet when oil goes down, gas take forever to come back down or stays the same or (how it is lately) keeps going up.

Someone once said something here on DU about the price per delivery is set when the gas is delivered to the station. That no matter what happens, that price has to stay at that price until that unit of delivery is exhausted.

All I have to say to that is: Bullshit.

that is the worst excuse I have ever heard.

If that is the case then explain my opening statement.

smoke and mirrors kiddies, smoke and mirrors.

[VMA131Marine]

2. There's a lesson in this...

The more efficient you are with energy the less the price volatility will affect you.

And, as much as the nation in general seems to be complaining about the price of gas, there doesn't appear to have been much effort made to reduce consumption. You only have to follow the US weekly petroleum status reports to see that demand is not really droppping:

http://www.eia.doe.gov/pub/oil_gas/petroleum/data_publications/weekly_petroleum_status_report/current/txt/table1.txt