The gasoline retail trade is suffering a fallout due to increased operational costs and weak sales with word coming that six service stations are on the verge of
The price of oil dropped a bit Wednesday after three days of increases.
Benchmark oil fell 53 cents to $93.14 per barrel Wednesday in New York.
Oil prices had increased more than $6 per barrel since Thursday following a positive report on the US job market. In addition, quarterly earnings for many companies have been stronger than expected.
Yet, the overall economy continues to struggle, which has fuelled speculation that the Federal Reserve may take action to promote economic growth.
A stronger economy means more demand for oil and other energy products. Oil demand is better than it was earlier in the year but hasn’t recovered to year-ago levels, said Michael Lynch, president of Strategic Energy & Economic Research.
Oil got a temporary boost Wednesday from a bigger-than-expected decline in US stockpiles. The Energy Department said oil inventories fell 3.7 million barrels last week to 369.9 million barrels. Analysts surveyed by Platts, the energy information arm of McGraw-Hill Cos., had predicted a much smaller decline of 300,000 barrels.
But the economic news from Europe remains grim. The Banque de France said it expects the French economy to slip into recession in the third quarter. German industrial production and exports fell in June.
Traders will closely watch fresh economic data from China Thursday on inflation, factory production and retail sales. China is the world’s second-biggest economy and a huge importer of oil.
At the pump, the national average price of gasolene rose about one penny to $3.647 per gallon, according to AAA, Wright Express and the Oil Price Information Service. That’s up nearly 27 cents from a month ago. It’s about two cents less than a year ago.
Brent crude, which is used to price international varieties of oil, gained 28 cents to $112.26 per barrel in London.
– AP
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The price of oil is dropping on fresh concerns about Europe‘s economy.
Benchmark oil fell US$1.44 on Friday to US$91.53 per barrel in New York. Brent crude, which is used to price international varieties of crude, was down US$1.42 to US$106.38 in London. A decline would be the first after seven straight gains.
The main focus for traders was Spain, where the government predicted that the country’s recession will extend into next year and the region of Valencia said it needed help from the central government to pay its bills. But Germany was also a concern as finance officials there said growth in Europe’s strongest economy likely slowed somewhat in the second quarter. Meanwhile, in the UK, the government said it had to borrow more than expected last month.
Europe’s lengthy battle with a massive government debt crisis has affected industries in other countries, such as the U.S., that do business there. It also has cut demand for oil and other energy products.
Oil had risen about 10 per cent since July 10 on concerns that renewed tensions between the West and Iran could result in a disruption of oil supplies from the Persian Gulf.
“After the long run-up in prices we’ve had the last 10 days or so, I think (events in Europe) kind of reminded people that the demand picture is still not very rosy,” said Michael Lynch, president of Strategic Energy & Economic Research.
Meanwhile, natural gas prices hit the highest level since early January as businesses and consumers cranked up air conditioning systems to stay cool in the hot weather. Natural gas rose three cents to US$3.01 per 1,000 cubic feet.
The price of natural gas fell below US$2 for the first time in more than a decade in April after a production boom boosted inventories. At the same time, a mild winter kept demand in check. The cheaper prices prompted many utilities to switch to natural gas from coal to fuel their generators.
In other energy trading, heating oil fell 3 cents to US$2.91 per gallon and wholesale gasoline prices fell 3 cents to US$2.91 per gallon.
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Minister of Industry, Investment and Commerce, Hon. Anthony Hylton, says that approximately 29 per cent of the country
FOR the second straight week Petrojam has increased the ex-refinery prices of fuel.
The prices of 87 and 90 octane gasoline have gone up by $1.97 per litre. They will now be sold for $99.80 and $101.45 per litre respectively.
Automotive diesel oil has been increased by $1.43 and will now be sold for $100.72 per litre.
The price of Kerosene oil has been increased by $1.85, it will now be sold for $102.35 per litre.
Propane liquid petroleum and Butane liquid petroleum have seen price increases of 38 cents and $1.88. They will now be sold for $32.45 and $43.50 per litre respectively.
Retailers and marketing companies will add their respective mark up
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Renewed tensions between Iran and the West pushed oil to its highest level in more than a month.
Iran is again threatening to block a critical Persian Gulf shipping route in response to a European embargo of Iranian oil. Iran has sparred for months with the West over its nuclear programme.
Benchmark US crude added US$3.91, or 4.7 per cent, to end at US$87.66 per barrel in New York. That’s the highest price since May 30.
Brent crude, which sets the price of oil imported into the United States, rose above US$100 for the first time in three weeks, adding US$3.34, or 3.4 per cent, to finish at US$100.68 per barrel in London.
Iran said Tuesday that it test-fired several ballistic missiles, including a long-range variety meant to dissuade an attack by Israel or the US.
The New York Times
Local gasoline retailers are reporting a turnaround in sales in line with the continued decline in the price of
Oil
The price of oil rose Tuesday on hopes that the Federal Reserve will announce new measures to stimulate the US economy.
West Texas Intermediate crude rose by 79 cents to US$84.06 per barrel by midday on the New York Mercantile Exchange.
Brent crude, which helps set the price for oil imported into the US, added 4 cents to US$96.09 in London.
The Fed holds a two-day meeting that ends today, and in the past it has taken action to encourage Americans to spend and borrow. Many analysts think the struggles of the US economy and Europe’s debt crisis will compel the Fed to say or unveil something to try to boost confidence.
Any sign that the Fed is willing to take action could lift oil prices, which have fallen sharply during the last six weeks over fears that growth in the global economy will stall.
“The market is building on a little optimism that they’ll do something,” said Peter Donovan, an oil broker with Vantage Trading in New York.
Concerns about Iran’s nuclear programme also are pushing oil prices higher, Donovan said. Negotiations between six world powers and Iran – a major oil producer – appear to have accomplished little this week in Moscow. That increases the likelihood of a European oil embargo in July. And some analysts are concerned the matter will only be settled by an armed conflict in the Middle East.
Either action – an embargo or an attack on Iran – could cut into the world’s supply of oil.
Even before its sudden drop, the price of oil had declined from a high this year of US$109.77 on February 24.
US gasolene prices continue to follow oil lower. yesterday, the national average fell below US$3.50 per gallon (92 cents a litre) for the first time since February 10, according to auto club AAA, Wright Express and Oil Price Information Service.
The average price of gasolene in the US has dropped 44 cents since peaking at US$3.94 in early April. Along with the impact of lower crude prices, there’s a greater supply of gasolene. Refineries tend to increase stockpiles of summer gasolene after Memorial Day.
In other futures trading, heating oil added 2.2 cents to US$2.64 per gallon while wholesale gasolene fell by 1.2 cents to US$2.649 per gallon. Natural gas lost 5.2 cents to US$2.583 per 1,000 cubic feet.
– AP
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