Crude futures rally on surprise drop in inventories ($94/bbl)

[Roland99]

Source: MarketWatch

Crude futures rally on surprise drop in inventories
A possible rate cut from the Fed in the afternoon could further lift oil

SAN FRANCISCO (MarketWatch) -- Crude-oil futures rallied to trade near record highs on Wednesday after the Energy Department reported a surprise drop in U.S. crude inventories in the latest week, while a possible rate cut this afternoon from the Federal Reserve could further lift oil prices.

Crude oil for December delivery rallied $2.58, or nearly 3%, to $92.96 a barrel on the New York Mercantile Exchange. The contract hit an intraday high of $93.67 a barrel in electronic trading after the release of inventory data, close to the record high of $93.80 set
on Monday. Futures prices of petroleum products also surged.
Crude supplies fell by 3.9 million barrels to 312.7 million barrels in the week ending Oct. 26, the Energy Information Administration said Wednesday. Analysts surveyed by Platts expected on Tuesday a build of 1.25 million barrels in commercial crude stocks.

"Oil is up sharply and recovering most of yesterday's price decline due to a major disappointing surprise from a second consecutive weekly crude oil inventory decline," said John Person, president of National Futures Advisory Service. "With a weaker dollar, expectations that the Fed may cut rates, one cannot expect prices to decline much if at all this week."

Read more: http://www.marketwatch.com/news/story/crude-futures-rally-surprise-drop/story.aspx?guid=%7BF078CE7B%2D5277%2D4358%2D9356%2D7A049EBBAFA6%7D

[whistle]

1. Is this due to supply manipulation?

[Roland99]

4. Or in combo with the freefalling dollar. Just wait until the entire Mideast drops pegs to the USD.

[Lone_Star_Dem]

7. Do you think that could actually happen?

Or will they just keep raising the price of oil to hedge their losses as the dollar continues to fall?

[Roland99]

8. There was an article the other day that made it seem that was almost inevitable.

[Lone_Star_Dem]

9. I know it was implied after the last rate cut.

I've just not seen much on it since then. As it is now they appear to be raising oil prices even faster than the dollar is dropping.

[Roland99]

11. Here's one that touches on it. >>>>

http://business.timesonline.co.uk/tol/business/columnists/article2767225.ece

[UndertheOcean]

2. when will they admit we are running out of the stuff ?

?

[sakabatou]

3. But, but... our Sky Daddy said we wouln't run out

[Bandit]

5. Still waiting for Bush* to jawbone with OPEC to bring prices down

Bush* ran in 2000 on that presumption. He blamed Clinton for gas prices rising to the unheard of $1.45 per gallon and he told all how he would not tolerate such and would get with OPEC and "jawbone" with them until they reduced the price of oil..I have been holding my breath for a long time now because I know Bush* would never bullshit us Americans.

[Strelnikov_]

10. They won't. The addicts would then start making other arrangements

So it has to be blamed on geopolitics and a falling dollar, which will continue to be the reason put out by the Reich. And like all good cover stories, there is a modicum of truth to it, in that geopolitics and the falling dollar are playing a part. However, the media blackout in discussing the primary factor, geology, strikes me as, well, being slightly suspicious.

[Strelnikov_]

6. That would be 2.474 Yergins per bbl for those tracking in that unit

The symbolic 2.631 Yergins/bbl level may occur within the 1/6 of a Friedman Unit at this rate.

On edit:

But don't fear, Danny sez its all due to politics and psychology, and we will all be fat with hydrocarbons in the near future:

The oil market ``may be only one or two events away from'' $100-plus oil, Daniel Yergin, chairman of Cambridge Energy Research Associates, said in remarks prepared for a conference today at Georgetown University.

``What we're seeing in the oil market today is rooted more in the cauldrons of geopolitics and the impact of financial markets, expectations and psychology than in supply and demand,'' said Yergin, whose book ``The Prize: The Epic Quest for Oil, Money & Power,'' won the Pulitzer Prize.

[Acadia Blue]

12. You know they are doing stuff to make the price go up, playing

with the markets to screw all us peasants.