Oil Extends Decline as Inventories Reach Most Since 1990

[Purveyor]

Source: Bloomberg

By Mark Shenk - 2012-06-20T15:56:40Z

Oil fell after the Energy Department said U.S. crude stockpiles rose to the highest level in almost 22 years and as investors awaited a Federal Reserve announcement on whether it will act to bolster the economy.

Futures dropped as much as 2.5 percent after the report showed supplies increased 2.86 million barrels to 387.3 million last week, the highest level since July 1990. Supplies were forecast to decline, according to analysts surveyed by Bloomberg. The Fed may announce stimulus measures at the end of a two-day meeting this afternoon in Washington.

“We are down because inventories were plentiful even before today’s report,” said Todd Horwitz, chief strategist at Adam Mesh Trading Group in Chicago. “We will probably take out $80 in the next couple weeks.”

Crude oil for July delivery fell $2.13, or 2.5 percent, to $81.90 a barrel at 11:48 a.m. on the New York Mercantile Exchange. Oil traded at $83.02 before release of the inventory report at 10:30 a.m. The July contract expires at the close of trading today. The more actively traded August contract dropped $2.23, or 2.6 percent, to $82.12.

Read more: http://www.bloomberg.com/news/2012-06-20/oil-declines-before-fed-decision-projected-supply-drop.html

[taught_me_patience]

1. Weakening global economy is slowing demand.

Probably not good news.

Meanwhile gas is still above $4.00/g in Los Angeles.

[joycejnr]

2. Not enough, but...

a welcome change in the usual summer month increases we've seen in the past!

[sinkingfeeling]

3. Yet, the cost of a gallon of gas went up here Sunday night by $.12 to $3.24.

[happyslug]

7. It went down 20 Cents to $3.29 in Ebensburg PA this week

I live less then 20 miles away and it is still holding out at $3.49 in Johnstown PA.

[BumRushDaShow]

4. Looks like they are finally

realizing that they can't keep closing refineries, blowing up pipelines, dumping oil at sea, and parking tankers and tankers of oil in every known port that they use, and thus they have to start somewhere to bring their fake speculative-frenzied world back to the real world.

The hope is that they don't suddenly make shit up come election time and shoot the price back up again, which I expect they will probably try to do anyway.

[goclark]

5. Help me out about Fracking

Does this post mean that all the oil that Haliburton and his Buddies are taking from the ground each day doesn't even have to be done?

We are suffering from the results of THE FRACKING OIL WELL!

[sybster1000]

12. Fracking is for natural gas

Thank goodness we don't have any here in TN, the Repubs would be screaming for them to come here and violate our state. We already have mountain topping and clear cutting..

[goclark]

14. CA

We have OIL WELLS in Los Angeles.

"California is the fourth largest producer of oil and gas in the nation, and companies are turning to controversial techniques like fracking. The industry would like to keep facts about the process buried, but it's got residents scared. In a "SoCal Connected" special report, correspondent Jennifer London unearths whether fracking is going on in Southern California and why it's become such a dirty word."

[Shadowflash]

6. They're not even pretending

That gas prices are related to either supply and demand or the price of a barrel.

If either were the case the gas prices would have fallen long ago.

They just like to rip people off and there is nothing you can do about it.

[happynewyear]

8. such B.S.

If inventories are at a record high then why the hell is a gallon of gasoline over $4.00/gallon STILL?

at these damn lies, ...

[eggplant]

9. Because oil and gasoline are two different things

Just because there is a glut of wheat, that doesn't mean there is a glut of bread.

That being said, there is no valid justification for the current prices. Big oil has simply figured out that people are willing to put up with it. It sucks.

[Purveyor]

11. Throttling refinery utilzation. Only 91% of refinery capacity is currently being utilized. eom

[Thrill]

10. Regular gas shouldn't be over $3.00 in any part of the country

The price gouging continues.

[RobertEarl]

13. US is using less gas

Better MPG vehicles, and just using less gas - staying home more.

We need to encourage this more economical use of the resource. If every one in the US strived to use 50% less gas the world would be a batter place.

[wordpix]

15. meanwhile, stock market is down on this news, which is actually good news

but the speculators don't like it.

[Purveyor]

16. Just checked and crude is now down to $79.71...

[wordpix]

17. maybe we'll get back to $3/gal. gas, that would be nice

However, I take the long term view and think we should use the breather to develop solar, wind, biofuels, etc