Oil prices slump under 45 dollars
Wed Dec 3, 1:43 pm ET

LONDON (AFP) – Oil prices tumbled Wednesday under 45 dollars, hitting their lowest point since February 2005, as weak US economic data sparked renewed concern about slowing global energy demand.

On London's InterContinental Exchange, Brent North Sea crude for delivery in January slumped as low as 44.87 dollars a barrel .

New York light sweet crude for January fell to 46.26 dollars -- also its lowest level since February 2005 -- on the New York Mercantile Exchange.

The oil market sank as a dismal private US employment report stoked concerns about a darkening outlook in the recession-hit US economy, analysts said.

The US private sector lost 250,000 jobs in November, the largest decline in six years, according to the ADP National Employment Report on Wednesday.

"The macroeconomic backdrop to the oil market continues to worsen," said Barclays Capital analyst Paul Horsnell.

"We are now projecting that global (crude oil) demand will decline in both 2008 and 2009," he added.

Oil prices have now plunged by about 70 percent since striking record highs above 147 dollar in July as a spreading global economic slowdown weighs on demand.

It emerged Monday that the United States -- the world's biggest energy consumer -- is in a recession, following the eurozone, Japan and other economies.

"So far this week, economic data globally and global economic forecasts have been very gloomy and provide added ammunition ... for driving prices lower; especially given OPEC's failure to cut output at the weekend," said analyst Nimit Khamar at the Sucden brokerage in London.

However, prices rebounded somewhat later Wednesday as falling US crude inventories suggested still stronger-than-expected US demand.

In late afternoon trade, Brent oil stood at 45.72 dollars, up 30 cents from the close on Tuesday. New York crude also rose 30 cents to 47.26 dollars.

The US government's Department of Energy (DoE) said crude inventories fell by 400,000 barrels in the week ending November 28, confounding market expectations for a 1.4 million barrel increase.

The DoE said gasoline (petrol) stockpiles dropped 1.6 million barrels, in contrast to estimates for a gain of 1.6 million barrels.

US distillates, which include diesel and heating fuel, declined 1.7 million barrels, compared with market expectations for no change.

The oil market began the week sharply lower after OPEC decided at a weekend meeting against cutting production, preferring to wait until December before reducing exports.

The cartel's secretary general Abdalla Salem El-Badri said on Monday that OPEC would decide on a "major" output cut next month if the oil market were deemed to be deteriorating.

The Organization of Petroleum Exporting Countries (OPEC), which pumps 40 percent of the world's crude, met in Cairo on Saturday to assess the state of the market but held off from making any decision on cutting production.

Instead, energy ministers decided that any output move would be made when they next meet in Oran, Algeria on December 17.

OPEC has already slashed output twice this year by a total of two million barrels per day (bpd) in response to plunging prices but fears remain that a global recession will drain demand for energy.

The OPEC production cuts agreed in September and October failed to stop prices subsequently sliding under 50 dollars.

As usual it makes no sense. $1.60 Wednesday before Thanksgiving. $1.69, Monday after. Thank God for Preparation H.

I paid $1.77 today and must admit I do notice the difference in my pocket book. I travel so many miles to/from work that I if I put $20 or so in every other day or so. A couple months ago $20 would maybe get me half a tank (I have a small Ford Escort). Monday I had about a half tank and put 20 bucks in an it only took 15. I was getting use to the higher price and thought I judged correctly how much I needed.



TIS

Wow... I thought the prices would be much higher out in Cali. I saw a few place here on Long Island that were uner $2 and I thought that was good. Most of the stations near me are $2.05.

MC, pass the Preparation H.

Just a week or so ago, it seemed here on the BB everyone paid less than Cali. Who knows what the hell is going on. It is so nice saving a little on gas money. I really am seeing a little difference. I don't want to get too comfortable with it though, could be 3 or 4 dollars next week, who knows?


TIS

Strange, but I guess you shouldn't question "why" since the price is dropping so quickly.

Like you, I saw a big difference in filling up my car's tank. I had to do a lot of driving yesterday so I topped off my tank first (it was half full). I put in only $14 worth to fill it up. A few months ago it would've taken $30 to do that.

I like to keep my tank full in the winter (to cut down on condensation in it during the cold weather) and I'm hoping the prices stay low, but I'm not gonna hold my breath for that.

By Julie Onufrak
The Patriot Ledger
Posted Dec 04, 2008 @ 06:00 AM
Last update Dec 04, 2008 @ 08:42 AM
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RANDOLPH — .Gulf Oil CEO Joe Petrowski said on Wednesday that the price of oil could sink to $20 per barrel, and there is a chance gasoline prices could drop as low as $1 per gallon by early next year.

Speaking at a South Shore Chamber of Commerce breakfast at Lombardo’s in Randolph, the Brockton native said that after speculators drove oil prices up, there is a chance that the market will overshoot on the way back down, resulting in much lower prices at the pump.

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Check out the latest prices locally
in our weekly CHEAPGAS survey.

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Gas prices have already sunk fairly rapidly this fall, reaching a statewide average of $1.85 for a gallon of regular-grade gasoline this week, following a plunge in crude oil prices.

Gulf Oil, which is based in Newton, is not an oil producer. Gulf stopped producing oil in 1986 and stopped refining oil in 1992, according to Petrowski. He said the company is a “fuel agnostic” wholesaler, and will sell whichever fuels customers and distributors demand.

Maybe I will get that Escalade after all.

Lou, I swear to God I was just goint to post something similar. Maybe I'll drive my Navigator this year after all.

My CTS lease is up this year, and they were offering me an Escalade at ridiculous prices. But that was when gas was $3+ a gallon.

You shouldn't be worried about how much you are spending on gas, you should be worrying what happens when it runs out.

Well I Think that most of the people on this board are Hard Working people and just can't afford 5 DPG gas prices (Granted they have come way down)

People complain because I don't think any of us are Millionares

An ex friend of mine has a massive SUV thing. He can't afford to keep that running.

What I hate is since everywhere is pre-pay and I use cash I go in and pay and then I pump and when it's about 20 cents from the limit the pump slows down while I freeze my ass off waiting 30 seconds for it to move to the limit.

We don't have that problem in Jersey, because we don't pump our own gas.

Are you serious? You mean to tell me that they still have attendants that pump your gas for you?

I remember about 12 years ago driving to the only station I knew where I'd get waited on. Geez, that's ancient history. I don't think anywhere around here they pump gas for you.

The old timers remember when they'd pop your hood, check your oil, tire pressure, wash your windshield and whatever? If I'm not mistaken many gas stations would do minor car repair too, like oil changes.


TIS

Not only do we have it, it's against the law to pump your own gas, and there is no "self-serve".

Do you have to tip the person? I am very suspicious of any scheme where people do the service

No, you don't have to. If they provide any extra service, and you feel generous, you can give them a buck or so. They do have a little system where most of them never round off the total to an even dollar if you fill up, because most people tell them to keep the change.

Fuel prices dropping every week.

Our interest rate was dropped yesterday also to a measly 2%

This on top of last month's cut means my monthly mortgage payment has dropped by £50. Not bad.

Shame the value of my house has dropped by £50,000

Ah well,i wasn't planning on moving anyway!

The Escalade and the Navigator. Gee, and they say that we fat, greedy Americans never learn.

It's still hovering right around $2 in New York City, but I've seen it as low as $1.85 up in some parts of Westchester and Rockland Counties.

I was in Florida for Thanksgiving, where I found regular down in Pompano Beach as low as $1.53. Where I live, in Palm Beach County, the average is about $1.69.

I'm at my in-laws in Lorain,Ohio now for the weekend and I found it tonight for 1.49. It's 1.65 where I live in Salem.

I just received an email from Carnival Cruise Lines. They're removing the "fuel surcharge" from my booking. It saves me $72.

I'm tempted to go for a long drive in the country.

I just filled my tank up and it cost me $21. During the summer, it cost $55.

Don't laugh BUT I read just yesterday (if I can remember where and find the link, I'll post it, but you'll have to take my word for in or now) that gas could go as low as $1.00 a gallon (or lower). Now that really begs to ask the question "What the fuck is goin on with gas prices."



TIS

As was posted time after time way back in the summer when we were going mad over gas prices, it's supply v. demand.

I won't laugh TIS, cuz I've heard the same thing. I just won't hold my breath waiting though.

Gas went from $1.61 to $1.77 yesterday.