Oil falls to nearly 6-month lows after surprise U.S. crude, gasoline build

Oil price fell to $88, and gasoline is cheaper too despite its summer driving season. I am seeing gas prices as low as $3.57 down here.

Oil falls to nearly 6-month lows after surprise U.S. crude, gasoline build
https://www.reuters.com/business/energy/oil-falls-demand-worries-stronger-us-dollar-2022-08-03/

• U.S. crude, gasoline stockpiles rise unexpectedly - EIA
• OPEC+ decides on small 100,000 bpd increase to output target
• U.S. had pushed for more meaningful supply boost
• Iranian and U.S. negotiators travel to Vienna for talks

HOUSTON, Aug 3 (Reuters) - Oil prices slid about 4% on Wednesday to almost six-month lows, after U.S. data showed crude and gasoline stockpiles unexpectedly surged last week and as OPEC+ said it would raise its oil output target by 100,000 barrels per day (bpd).

U.S. oil drops below $90 per barrel
https://www.cnbc.com/2022/08/04/oil-markets-demand-global-economic-slowdown-supply.html
The move followed an unexpected surge in U.S. crude inventories last week. Gasoline stocks, the proxy for demand, also showed a surprise build as demand slowed, the Energy Information Administration said.

 

Dude. Can you ever be serious? Oil stocks build as consumers consume less. Why? Decreased ability to afford the gas...

The fact that you're celebrating this is laughable.

 

Refineries are closing.

That means any shock to the system has the potential to send gas prices soaring. Most refineries are on or near the Gulf, a hurricane can shock the system.

Because refineries are so expensive to build and maintain, a refinery owner can find other ways to make money with that land. And most cities are glad to see them go. Some even help.

Then there are the global price shocks.

I really like to see the price of gas go down. But we're in a new era, and the rules have changed.

 

I knew this would cause some gnashing of teeth, but that's ok. Most folks like cheaper gas, while some others (like you) celebrated high prices because of partisan reasons.

 

One of the most dishonest posts I can recall..... Biden caused international instability, instability led to higher oil prices, higher oil prices continued to create more international instability, and as gas prices rose, economic productivity was effected, and caused the recession that we're now in. And as a result, demand for oil in the US and around the world decreased. And prices are falling because of it.

I didn't "celebrated high prices". In that you are entirely being dishonest. There are many democrats who admitted that higher prices would curb consumption which was an effort to appease the green nazis of that party. do you suppose those same democrats are cheering lower gas prices? I bet you should check with the local party apparatchik before you reply...

 

When Biden took office gas was $2. He ran the prices through the roof. So now we're supposed to be thankful its only $4? Screw that.

 

No, it was not.

Yes, he tweaked the knob on his desk which which is labeled "global oil price/demand/supply" LOL

I pray the Lord will evict Biden from your head.

No, your party wants you bitter & angry.

 

It sure as hell WAS $2 here. And no, he didn't tweak any knob. He:
- Increased royalties (spell that T-A-X) on oil from wells on federal lands
- Stopped issuing drilling licences for federal lands
- Stopped pipelines
- Discouraged fracking
Biden will be out of our heads when he stops high inflation, ends rising crime, secures the borders, stops fentanyl from streaming across the border and killing us, makes formula available for babies, stops the endless spending, stands up to China, and so much more.

 

It was $2.60. It was easy enough to check. Oil price is global, so please spear me from partisan nonsense.

 

"Crude oil prices fell by nearly 7% on Tuesday as fears of a recession mount—a scenario that could put a dent in oil demand. "

https://oilprice.com/Latest-Energy-News/World-News/Why-Oil-Prices-Crashed-By-10-Today.html

By all means, let's celebrate.

 

Yeah... ok... Biden raising royalties on oil from federal lands had NO EFFECT on gas prices. Biden shutting down pipelines had NO EFFECT on gas prices. Biden discouraging fracking had NO EFFECT on gas prices. Biden stopping the issuance of drilling licenses on leased federal lands had NO EFFECT on gas prices. LOLOL.... of cours enot... LOLOLOL... ROFLMAO!!!

 

It wasn't $2.60 here in Texas, pal. It wasn't even $2.

 

So you are saying that gas prices in Los Angeles are the same as gas prices in New York and gas prices in Texas are the same as in California. And gas prices in Paris France are the same as in Paris Texas.
You definitely need to get out more.

 

Read my post again if you wonder what I said.

 

Can you tell us under which president OPEC millions of barrels of oil per day at their request?

Can you tell us under which president trade agreements were made making it very difficult to import baby formula?

Can you tell us under which president we had the largest fed monetary injection in the history of the nation?

Theee questions — let’s see how you score

 

I am retired, on a fixed income...

So there are a lot of obvious things to be said here, but the Mods don't like it when I say them.

 

By George, I do believe you've got it.

 

Oil is a futures market. You do know what’s in the most recent Dems spending bill don’t you? The only part of it I agree with was the massive amount of land opened up for drilling. It’s going to be good for oil prices and goes to prove that there is things we can do to reduce the oil price.

 

Gas isn’t cheap, it’s still unbearably expansive. I had to get diesel for the farm tractors, had to put the credit card in the pump 4 times, never had to do that before.

And oil is $89-$95 per barrel, just WTI oil dropped a few cents below $90. Brent is $95.

You can’t see the forest for the trees.

 

There is no shortage of drilling land. Two largest-ever land auctions for drilling were held on 2021 and 2022, but oil companies were not interested in buying. Obviously you can't force them to buy it, or drill more, so it is what it is. They are making massive profits without having to make new investments, so they couldn't be happier. They WANT prices to stay high. What makes you think they'd want to cut their own profits?

I see just fine. I said some people will gnash their teeth, and you proved me right.

 

A somewhat more amplified view of the oil price situation is given here: https://www.reuters.com/markets/com...ping-lowest-months-weak-us-demand-2022-08-04/

From the story at the link:

"LONDON/NEW YORK, Aug 4 (Reuters) - Global oil prices dropped on Thursday to their lowest levels since before Russia's February invasion of Ukraine, as traders fretted over the possibility of an economic recession later this year that could torpedo energy demand."

"The demand outlook remains clouded by increasing worries about an economic slump in the United States and Europe, debt distress in emerging market economies, and a strict zero COVID-19 policy in China, the world's largest oil importer.

"A break below $90 is now a very real possibility, which is quite remarkable given how tight the market remains and how little scope there is to relieve that," said Craig Erlam, senior market analyst at Oanda in London.
"But recession talk is getting louder and should it become reality, it will likely address some of the imbalance."

The top-tier of well-known economists are predicting a recession, and many think we are surely in one already. It is likely that much of what we hear and read between now and the November midterm elections will be heavily stilted, manipulated, and twisted out of context by all factions for political advantage. What's more believable? Place your credibility in what you actually PAY for fuel....

 

Those land sales may have been bad land or two expensive to drill in because three of the big oil companies support the democrats bill based on this land opening up

 

There was nothing wrong with the land, they simply did not see a need to invest more money, when they were already making record profits, but of course they support a hand-out.

 

Biden's war on the oil industry was all domestic. Again, he raised royalties (spell that T-A-X-E-S) on oil from wells on federal lands. He discouraged fracking. He stopped pipelines. He stopped issuing drilling licenses for federal lands.
The baby formula shortage had nothing to do with imports. Biden's FDA shut down the largest baby formula manufacturing plant in America.
"Monetary injection"? Please define that. If you mean free money for doing nothing (freebies for bums)... its Biden.Obama had the same policy... he called it "Qualitative Easing". But it was the same thing essentially... something for nothing.

 

Actually he issued more licenses than your messiah did in his first 3 years in office.

No, the plant shut down on their own initiative thinking their formula might have caused the deaths of 3 infants.

Whoever spoon-feeds you information is lying to you and you take it for gospel.