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JPS News Oil

Oil’s Slide Continues, Hits 6-Week Low Below $92

September 20, 2012 jrobinson

Oil prices fell on Wednesday for the third day in a row as traders realised that a recent run-up to $100 may have been overdone.

Oil ended at $91.98 on Wednesday, dropping $3.31, or 3.5 per cent. That was its lowest close since August 3. Oil has fallen 7 per cent this week.

Several things have been pushing prices down. Analysts said traders are taking profits after oil got above $100 per barrel on Friday for the first time since May. And there have more signs this week that the global economy is slowing down, which tends to push oil prices lower because people and businesses use less energy.

Also, crude inventories rose three times more than analysts had expected last week. Crude supplies grew by 8.5 million barrels to 367.6 million barrels. That’s 8.4 per cent higher than at the same time last year, according to the Energy Information Administration‘s weekly report.

Analysts expected a rise of 2.5 million barrels, according to Platts, the energy information arm of McGraw-Hill Cos.

There were also reports that Saudi Arabia is keeping production high to drive oil prices lower.

Oil’s decline came despite some news that might have pushed prices higher. The Bank of Japan said on Wednesday that it would buy more government bonds, which is intended to boost Japan’s economy. And ongoing tensions in the Middle East have tended to drive prices higher.

“Yet we continue to fall,” said Addison Armstrong, senior director for market research at Tradition Energy. “I think that has accelerated some profit-taking. After all, crude did have a pretty good run from $86 up to $100.”

Brent crude traded on the ICE Futures exchange in London fell $3.84, or 3.4 per cent, to $108.19 per barrel.

Traders were also keeping their eyes on oil supplies as US Gulf Coast refineries returned to production after shutting down due to Hurricane Isaac.

“We’re getting back a few more refineries post (Hurricane Isaac), but on the flip side a few refineries had some restart issues and a few are headed into maintenance,” said Carl Larry of Oil Outlooks and Opinions in a newsletter.

Regular gasolene at the pump fell a half a penny to an average of $3.854 per gallon.

– AP

http://jamaica-gleaner.com/gleaner/20120920/business/business1.html

JPS News Oil

Oil’s Slide Continues, Hits 6-Week Low Below $92

September 20, 2012 Webmaster

Oil prices fell on Wednesday for the third day in a row as traders realised that a recent run-up to $100 may have been overdone.

Oil ended at $91.98 on Wednesday, dropping $3.31, or 3.5 per cent. That was its lowest close since August 3. Oil has fallen 7 per cent this week.

Several things have been pushing prices down. Analysts said traders are taking profits after oil got above $100 per barrel on Friday for the first time since May. And there have more signs this week that the global economy is slowing down, which tends to push oil prices lower because people and businesses use less energy.

Also, crude inventories rose three times more than analysts had expected last week. Crude supplies grew by 8.5 million barrels to 367.6 million barrels. That’s 8.4 per cent higher than at the same time last year, according to the Energy Information Administration‘s weekly report.

Analysts expected a rise of 2.5 million barrels, according to Platts, the energy information arm of McGraw-Hill Cos.

There were also reports that Saudi Arabia is keeping production high to drive oil prices lower.

Oil’s decline came despite some news that might have pushed prices higher. The Bank of Japan said on Wednesday that it would buy more government bonds, which is intended to boost Japan’s economy. And ongoing tensions in the Middle East have tended to drive prices higher.

“Yet we continue to fall,” said Addison Armstrong, senior director for market research at Tradition Energy. “I think that has accelerated some profit-taking. After all, crude did have a pretty good run from $86 up to $100.”

Brent crude traded on the ICE Futures exchange in London fell $3.84, or 3.4 per cent, to $108.19 per barrel.

Traders were also keeping their eyes on oil supplies as US Gulf Coast refineries returned to production after shutting down due to Hurricane Isaac.

“We’re getting back a few more refineries post (Hurricane Isaac), but on the flip side a few refineries had some restart issues and a few are headed into maintenance,” said Carl Larry of Oil Outlooks and Opinions in a newsletter.

Regular gasolene at the pump fell a half a penny to an average of $3.854 per gallon.

– AP

http://jamaica-gleaner.com/gleaner/20120920/business/business1.html

News Oil

Oil Prices Hit $94 For First Time Since May

August 8, 2012 jrobinson

News Oil

Oil Prices Fall On Global Economic Concerns

June 12, 2012 jrobinson

Oil fell Monday on the realisation that a short-term fix in Spain won’t offer a long-term solution to Europe’s debt crisis.

A multibillion-dollar bailout loan for Spain’s banks generated initial enthusiasm in the global stock, bond and energy markets. But by the close in New York, the good feeling had given way to scepticism.

Benchmark oil fell $1.40 to $82.70 per barrel in New York. Brent crude, which is used to price international varieties of oil, dropped 81 cents to $98.66 per barrel in London. The broad S&P 500 stock index fell nearly one per cent.

Leaders of European countries agreed over the weekend to lend Spain up to $125 billion to help its troubled banking system. Spain is the fourth European country after Greece, Portugal and Ireland to request financial help since the debt crisis began.

Oil jumped above $86 per barrel in trading in Asia. But the relief was temporary, replaced by concern over Spain’s ability to repay the money. The potential for Greece to abandon the European currency still hangs over the market, as does a deepening recession in Italy. That turmoil, as well as slowing economic growth in China and the United States (US), is reducing demand for oil, gasolene and diesel fuel.

It’s not yet clear whether Europe’s ongoing efforts to put the financial crisis to rest will result in an economic turnaround. “It just doesn’t seem like that’s very close,” said Michael Lynch, president of Strategic Energy & Economic Research.

Meanwhile, oil supplies continue to build despite ongoing weak demand around the world.

US oil production topped six million barrels a day in the first quarter of 2012, which was a 14-year high, according to the Energy Information Administration. Most of the increase was the result of more production in North Dakota, Texas and the Gulf of Mexico.

Oil’s decline was tempered by data showing China imported nearly six million barrels of crude a day in May. That was about 10 per cent more than April and 18 per cent more than a year earlier. China is a huge importer of oil and other commodities.

Meanwhile, motorists are continuing to see a steady decline in pump prices. The national average for gasolene fell less than a penny overnight to $3.54 per gallon, according to AAA, Wright Express and the Oil Price Information Service. That’s 19 cents less than a year ago. Gas has dropped 50 cents per gallon in a little more than two months.

Natural gas dropped 8.1 cents to $2.218 per 1,000 cubic feet. The price has plunged about 50 cents in three weeks as supplies remain well above normal levels.

In other trading, heating oil fell 3.64 cents to $2.638 per gallon and gasolene dropped 2.86 cent to $2.657 per gallon.

– AP

http://jamaica-gleaner.com/gleaner/20120612/business/business2.html

News Oil

Oil Drops To US$91.66

May 24, 2012 jrobinson

Oil prices dropped near their lows for the year following warnings of a “severe recession” in Europe and an apparent easing of tensions over Iran’s nuclear program.

Benchmark US crude on Tuesday lost 91 cents to end the day at US$91.66 per barrel in New York while Brent crude fell by 40 cents to end at US$108.41 per barrel in London.

Both contracts hit a low for 2012 on Friday at US$91.48 and US$107.14, respectively.

Oil has declined almost every day this month as elections in Greece and France threatened existing plans to fix the eurozone economy. A top economist for the Organization for Economic Cooperation and Development warned Tuesday that the eurozone could fall into recession this year if leaders fail to stimulate the economy.

Stunt growth

If that happens, it would stunt growth in world oil demand at a time when supplies are expanding.

Fears of a protracted standoff with Iran had helped push benchmark crude near US$110 per barrel in February. Prices have since fallen below levels of early November, when the United Nations first warned of a potential nuclear threat from Iran.

Uninterrupted Iranian exports could boost world oil supplies to an average of 89.15 million barrels per day, according to the latest projections from the Energy Information Administration. That would be more than enough to meet world demand.

In other futures trading, natural gas added 9.8 cents, up 4 per cent, to finish at US$2.707 per 1,000 cubic feet.

Natural gas prices have jumped by 42 per cent since hitting a 10-year low on April 19 as supplies declined.

Heating oil and wholesale gasolene were both flat, ending the day at US$2.8614 and US$2.937 per gallon, respectively.

– AP

http://jamaica-gleaner.com/gleaner/20120523/business/business5.html

News Oil

Oil Prices Fall On Growing US Supply

April 19, 2012 jrobinson

Oil prices dropped Wednesday after the government said US supplies grew more than expected last week.

Benchmark West Texas Intermediate crude fell $1.53 to finish at $102.67 per barrel in New York, while Brent crude lost 81 cents to end at $117.97 per barrel in London.

The Energy Information Administration reported that US crude oil supplies grew by 3.9 million barrels last week. Analysts expected an increase of 400,000 barrels. The government’s weekly report also said that US oil demand dropped 2.7 per cent, gasolene demand fell 2.8 per cent, compared with a year ago.

Anemic demands

The data suggest that motorists aren’t filling up as much ahead of the summer driving season.

“You continue to see some pretty anaemic fuel demand levels” in the US, said Gene McGillian, a broker and oil analyst at Tradition Energy.

US retail gasolene prices dipped slightly to a national average of $3.899 per gallon, according to AAA, Wright Express and Oil Price Information Service. The national average has declined by 2.6 cents this month, and it’s now just barely under $3.90 for the first time since March.

Experts say that gasolene prices have levelled off this month, but they’re likely to rise to around $4 per gallon during the next few weeks as more refiners switch to producing summer blends of fuel.

In other energy trading, heating oil gave up less than a penny to finish at $3.1182 per gallon and gasolene futures lost 3.13 cents to end at $3.2027 per gallon. Natural gas futures were unchanged at $1.9510 per 1,000 cubic feet.

http://jamaica-gleaner.com/gleaner/20120419/business/business3.html

News

Clearing the air on coal

March 23, 2012 jrobinson

LIKE so many of us, I have deep concerns for the preservation of our environment. For how we can balance all the elements to ensure that our basic needs are met – food, shelter, clean drinking water, fresh air. I want it all. But what to do when it appears that the two ideals – protection of the land and advancement of the people, are at odds? Where do we go from there? It doesn’t help if both sides are intractable. “My way is the only way.” There are some things for which compromise is ruled out even before the dialogue begins. We know that there are hard choices to be made, but can we make them for mutual benefit?

An ugly little spat has sprung up between the government and leading environmentalists over the announced intention to permit the use of so-called “clean coal” in bauxite-processing operations. Environmentalists responded immediately and sharply to the announcement