Oil slides below $99 - Markets relieved

[ben_meyers]

Source: CNNMoney.com

In a special early-Sunday electronic trading session, crude futures fall after early reports suggest that Ike may not have caused significant damage to refineries.

NEW YORK (CNNMoney.com) -- Oil prices fell below $99 a barrel on Sunday in a special early-start session as traders bet that Hurricane Ike did not cause significant damage to refineries.

"The market is expressing some relief," said Andrew Lebow, a broker at MF Global in New York. "We were worried on Friday that the storm surge would flood the refineries, but right now it looks like that was not the case."

"The storm surge was not 20 feet, it was more like 12 or 13 feet," said Lebow. While preliminary reports showed that damage was not as bad as originally feared,(snip)

Read more: http://money.cnn.com/2008/09/14/markets/oil/index.htm?cnn=yes

---

They are in on it too, the speculators are downplaying Ike's devastation.

Why are the media hiding the damage and the bodies? Only 4 reported deaths? The NWS saying that it wasn't as bad as feared?

What is the agenda here? An election maybe?

[Catch22Dem]

1. So how many people do you think perished?

I have no idea. I know I saw TONS of damage on TV. I even commented to my wife that the damage looks worse than I imagined it would be. The Texans' stadium roof was ripped off so they had to postpone an NFL game. I guess I just don't understand what you mean by "they're hiding the damage"

[glowing]

3. Look for a body bag count, then assume that those body bags are being filled.

Katina's numbers were trivialized I beleive. They had more body bags brought in when 50,000 wasn't enough.. and they had sealed off tents so the media couldn't get close.

[JeanGrey]

38. 50,000? Are you saying that fifty thousand people

died in Katrina?

[alarimer]

34. I think the OP meant that they are not allowing overflights of Galveston.

In an effort to hide the extent of the damage. They do not want everyone to see how poorly they managed this storm.

[JeanGrey]

39. Of course they are. I've seen tons of pictures on a weather

site that were posted were they overflew everywhere. And why does the damage indicate "mismanagement?"

[glowing]

2. There's only so long they can hide the devastation.. At some point there will be power

there will be access to the internets and there will be truth written in the blogs and in the pics that will be posted and Americans will wonder where the hell the media was and what exactly were they NOT reporting.

[Catch22Dem]

14. Here's a report from a Houston DUer

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x3998716

[ohio2007]

30. Seems "babylonsister" never really lost power if that person posted this afternoon

I know people from both Dallas and Houston.
They take charge,pick themselves up by their own bootstraps and lend a hand to those around them not as fortunate.

It's good to see and read such can do attitudes imo.

Don't know any people from Gavelston

[opihimoimoi]

4. They did this a couple of years ago...lower the prices just before election

and when its over....jacked it up to High Heaven

bastids.

[Xipe Totec]

5. That's weird

You would expect refinery damage to cause crude oil prices to fall, because without refineries you cannot process the oil, and that creates a glut.

On the other hand, no damage would mean the oil can continue to flow through the refineries, so demand for crude would increase, driving prices up.

Am I wrong in this? :shrug:

[JDPriestly]

25. Good point!

I don't think many people will understand what you are seeing. They do not understand the difference between refined petroleum products and crude oil.

[ohio2007]

31. It's called "hoarding", before and during a crises. The emergency oil reserves had been tapped into

so if things are not as bad as being reported, we may all see gas drop below $4/gal and return to where it was ( in my area, @ $3.45 / $3.50/ gal )
Which is still $2 gal higher then I like to pay for it.

Hoarding drives up the prices.

[Xipe Totec]

37. So who's hoarding crude? n/t

[alarimer]

35. Without electricity I don't think they can process it anyway.

I expect them to be shut down for a few days a least maybe a couple of weeks. I really have no idea.

[NeoConsSuck]

6. And like clockwork: Nigeria rebels declare 'oil war'

http://www.cnn.com/2008/WORLD/africa/09/14/nigeria.oil.war/index.html

[Warpy]

7. The local newscasts look like it SUCKS to be there

DHS has a no-fly zone over the island, the news people are annoyed as hell about it, but they're also reporting that the ANG is flying helicopters in and out to bring in supplies and rescue survivors, so there's a good reason for it.

As for the refineries that shut down, they shut down before the storm, not as a result of damage. They'll spend a few days checking things out and then start up again.

However, the flooding has spread into areas that didn't get it during the storm, itself, and it's impossible to get around in anything but a dump truck. People are pretty much stuck where they are, surveying the spoiling food in the fridge and the limbs on the lawn.

When they're sending garbage trucks out to rescue people, you know the streets are BAD.

http://www.maroonspoon.com/wx/ike.html

[grantcart]

8. The more Bush negotiates with Iran and Libya the lower the price of oil drops

as the threat of war recedes. The Obama doctrine already having a positive impact.

[safeinOhio]

9. Why has the price of oil to diesel dropped so fast?

Today in Ohio, diesel is $3.92 and gas is $3.99. A month ago diesel was a buck more than gas. Anyone know what gives? Is it the same where you are?

[merwin]

16. The price of diesel fluxuates seasonally.

We're coming out of the summer months, so it's dropping again.

Here's a page that summarizes it nicely.
http://www.agmanager.info/energy/Diesel%20prices%20and%20seasonality%20(June%202007).pdf

[Tutonic]

10. Read the NEWS people--Ike affected 30% of oil production.

The Oil Industry thinks that we have a collective IQ of 10. We need to get off of oil dependence like yesterday so that these bastards can finally be exposed! And four deaths? Hahhhhhaaa! They should build a rendition facility specifically for the media--let them experience all of the ills that they covered up.

[Oskie]

11. Oil slide before Nov./ Bush trying to get Bin Laden before Nov.

NPR report yesterday: Bush sending more troops in to find Bin Laden before Nov. elections! Wonder why?
Oil continuing to slide -- before Nov. elections. Wonder why?

DUH???

[CountAllVotes]

13. ding ding ding ding ding !!!

:hi: and welcome to the DU!

You are spot on!

:kick:

[AlphaCentauri]

12. The Oil's God Fathers want their guy elected

Don't you notice for every bad news about the economy there are 10 saying (not showing facts) that everything is fine

[depakid]

15. What's with the special session?

:shrug:

How often is this done and what are the rules for calling one?

[pattmarty]

17. OK, when are the fucking prices coming down???????

[Psephos]

23. When the whorehouse runs a Columbus Day sale. n/t

[bulloney]

26. That's my question. Some stations are charging as much as $4.25 in NW Ohio.

If oil is below $100/barrel, gasoline should come down well below $3.00/gallon.

[Nambe]

18. Oil Falls to Six-Month Low as Refineries Escape Major Damage

Source: Sept. 14 (Bloomberg)

Crude oil fell to a six-month low in New York and gasoline tumbled amid signs that refineries along the Gulf of Mexico coast will soon resume operations after escaping major damage from Hurricane Ike.

Almost 20 percent of the U.S.'s oil refining capacity was shut, limiting fuel deliveries and prompting the Department of Energy to release 309,000 barrels from its strategic reserves. New York Mercantile Exchange electronic trading opened early to allow traders to respond to Ike.

``It looks like we've dodged another bullet,'' said Peter Beutel, president of energy consultant Cameron Hanover Inc. in New Canaan, Connecticut. ``The refineries in the Houston area seem to have come out of the storm remarkably intact.'' ...

Read more: http://www.bloomberg.com/apps/news?pid=20601087&sid=akY8_TEio9W4&refer=home

[liberal N proud]

19. Meanwhile, gas prices above $4.00/gal

[YDogg]

22. and bunches of stations near me (central FL) are out of gas.

[RantinRavin]

27. Only because dumbasses went out panic buying

And emptied the stations tanks before they got their normal delivery. The storage tanks at the Port of Tampa are completely full and ready for delivery.

[YDogg]

32. agreed

[ben_meyers]

36. And you are correct sir or madam

In the summer of 2003 the Kinder-Morgan gasoline pipeline blew out between Tuscon and Phoenix. People were topping off their tanks anytime they saw a station with gas. At one point the experts estimated that there was a 30 day supply of fuel just in the tanks of peoples cars.

[movonne]

20. Sometimes I think they are playing a game on us...

[54anickel]

21. This is the 2nd time the NYMEX opened early to allow speculators to protect their positions. WTF!

[bloomington-lib]

24. Prices drop.....yeah

Before this weekend gas in Btown IN were around $3.60. Today they've jumped up to 4.19. I would love to get their Christmas bonus this year.

[ohio2007]

28. Why are the media hiding the damage and the bodies? Maybe you should go out and MAKE the news you

want to read ?
So sorry to see you so disappointed with lack of deaths. :eyes:

Any specific reason why that is ?

[dipsydoodle]

29. Markets relieved

So what's new - they're used to pissing on us anyway.

[Imagevision]

33. People are driving much less, they've run out of storage tanks to put it in like

they did in 1973, so the prices dropped and also the US. dropped the 55mph an put it up to 65-70 on freeways so ya'll would use more gas