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Entries in Crude Oil (8)

Monday
Sep172012

Gas Up 3 Cents; Odd Price Drop in Oil Markets

Jupiterimages/Thinkstock(WASHINGTON) -- The weekly average price of a gallon of regular gas is $3.88, up three cents compared to a week ago, according to the U.S. Department of Energy.  This price is up 28 cents from a year ago.

Gas prices are still expected to move lower in coming weeks, but protests in oil producing countries have pushed the price of crude oil higher, which contributes to higher gas prices.

The Fed’s QE3 announcement last week is another factor that could keep prices higher.

In the crude oil market Monday, prices dropped $3 in less than a minute in New York trading.  Brent crude, a separate crude oil market also saw a similar price plunge.

It was not immediately clear what caused the sharp drop, absent any concrete reason there is speculation that this was the result of a high frequency trade -- a massive computer trade.

Oil settled at $96.62 a barrel in New York trading Monday, down $2.38.

Copyright 2012 ABC News Radio

Monday
Feb202012

Oil Prices Hit Nine-Month High

Comstock Images/Thinkstock(NEW YORK) -- Oil prices have risen following Sunday’s announcement by the Iranian oil ministry of a halt in oil exports to Britain and France in response to the European Union’s sanctions on the nation in January.

Oil prices hit a nine-month high reaching $105 a barrel and could increase further if Iran proceeds with its threat to halt oil exports to other European nations. Gas prices have increased to 18 cents a gallon in the past month.

"The increase in price is a direct result of European importers of Iranian oil looking round to find alternative sources," said Professor Paul Stevens from Chatham House, reports BBC.

However, the increase in price is also attributed in part to an improvement in the economies of China and the United States.

Copyright 2012 ABC News Radio

Saturday
Dec312011

Census: Largest US Export is Oil, Despite Dependence on Foreign Oil

Digital Vision/Thinkstock(WASHINGTON) -- It is a paradigm shift in the world of exports. The United States now exports more oil products than anything else.

For a country so dependent of foreign oil, you wouldn't expect the U.S. to be a major supplier of refined oil products.  But the Census Bureau says we are.

For the first time, gasoline, diesel and jet fuel are expected to be the nation's top exports. Ten years ago, oil wasn't even among the top 25 exported products.

The new figures do not indicate that we are close to energy independence. The U.S. is still the world's largest importer of crude oil.

Copyright 2011 ABC News Radio

Monday
Sep052011

Markets Closed as Jobless Rate Worries Investors

Comstock/ThinkstockThe markets may be closed but there's plenty for investors to consider.

Last Friday's jobs report was a disappointment -- more confirmation the U.S. economy is limping along between a recession and growth -- as unemployment rates continue to tread water.

Banks are among the biggest losers, as federal government regulators file a giant lawsuit seeking damages over the way mortgage backed investments were marketed before the 2008 financial crisis.

President Obama's speech on jobs this week could move the markets. Many supporters are urging him to be bold in proposing a range of ideas to jump start the jobs market. Republicans are likely to resist any real push to raise government spending on construction or other areas.

European stock averages are down sharply, while gold is now above $1,900 an ounce. Global oil prices are at $85 a barrel -- signalling more price cuts in the weeks ahead for U.S. gas prices.

Copyright 2011 ABC News Radio

Tuesday
May312011

Gas Prices Fall Slightly, Still 39 Percent More Expensive than Last Year

Jupiterimages/Thinkstock(WASHINGTON) -- The Energy Department reports Tuesday the national average price of gasoline fell six cents during the past week. Drivers who filled up during the Memorial Day weekend saw pumps posting an average of $3.79 a gallon.

Even with the recent drop in gas prices, drivers are paying 39 percent more than they were a year ago ($2.73 a gallon).

A weaker dollar and shutdown of a pipeline in Kansas helped move oil prices higher Tuesday, hinting that the recent respite in gas prices might reverse in the coming weeks. Crude oil added $2.11 to settle at $102.70 per barrel on the New York Mercantile Exchange at the close.

Should Friday’s May jobs report come in better than the 185,000 new jobs economists are expecting, there would likely be fuel for a quick uptick in retail gas prices.

Copyright 2011 ABC News Radio

Monday
May022011

Gas Prices Reach Highest Springtime Level Ever

Kevork Djansezian/Getty Images(NEW YORK) -- Crude oil prices fluctuated Monday following President Obama's announcement that U.S. Navy SEALs had killed al Qaeda leader Osama bin Laden. Prices first fell, then rose, then fell again, landing at a four-day low: $113 a barrel on the New York Mercantile Exchange.

The U.S. Department of Energy reported late Monday that gasoline prices at the pump averaged $3.96 a gallon nationwide, up a little over eight cents from a week ago. The price hit $4 a gallon or higher in 12 states, plus the District of Columbia. AAA and other market watchers said they expect $4 to become the norm nationwide by the end of this week.

Petroleum expert Andrew Lipow, speaking with ABC News, said the price of crude fell by two dollars immediately following the president's announcement, then, by mid-morning, had climbed 50 cents. He attributed the initial drop to concerns that al Qaeda might stage reprisals.

Lipow, president of Lipow Oil Associates in Houston, said he expects the effect of bin Laden's death to be mostly positive. "It's good news that the threat of terrorist action against oil producing, refining and transportation facilities around the world now seems to be reduced," he said. Longer-term, he thinks there will be little if any relation between bin Laden's death and what consumers pay at the pump.

"Markets are rallying and people are saying they see better times ahead. With greater optimism, however, comes increased petroleum demand. Demand around world is at a record level. We're seeing huge growth of demand in China, and after that, in India, Saudi Arabia and Brazil. While U.S. petroleum demand might be stagnant, the rest of the world needs more."

Also putting upward pressure on prices, he says, is the fact that Libya, wracked by civil war, for now has suspended oil production. The country exports its crude primarily to Europe, not to the U.S. But Libyan crude, made into gasoline in Europe, is then exported to the U.S. eastern seaboard. Indirectly, says Lipow, "We get 10 percent of our gasoline from Libya. Their oil will continue to be off the market for some time." Meantime, he said, many of oil-producing regions of North Africa and the Middle East remain in turmoil.

Lipow predicts gasoline will peak at $4 a gallon over the next couple of weeks, then slowly work its way down in price. Barring further turmoil in producing nations, "by the end of the year it might come down 25 cents a gallon -- but you really would need today's turmoil to resolve itself."

Copyright 2011 ABC News Radio 

Friday
Mar042011

Gas Prices Rising: $5.29 in Florida, $4.00 in Massachusetts

WCVB-TV(NEW YORK) -- Oil prices around the world continued to soar Friday, buffeted by uncertainty in the Middle East.

Crude oil futures hovered above $103 a barrel in New York Friday morning. In London trading, oil headed for its sixth weekly gain, according to Bloomberg News.

An oil facility in Libya was reportedly damaged and on fire, the Al Jazeera news channel reported. Meanwhile, demonstrators continued to protest in Saudi Arabia, demanding the release of Shiite prisoners, according to CNN.

"I think there's a storm brewing in Saudi Arabia," said Tom di Galoma, head of fixed income rates trading with Guggenheim Securities. "All these geopolitical events in Middle East are causing oil to spike."

In the United States, how much pain at the pump drivers feel may depend on location. In Orlando, Fla., two gas stations that are the closest to the airport, and across the street from each other, are selling regular at $5.29 and $5.19 a gallon.

After the biggest one-week rise in oil prices in two years, weekly gas prices increased 6 percent this week, according to the Department of Energy. The national average is $3.38 per gallon, an increase of 19 cents over the previous week and 68 cents from the previous year. The average price in California, one of the most expensive states, is $3.72 per gallon. The least expensive gas is in the Rocky Mountain region: $3.18 a gallon.

Crude oil production has decreased between 500,000 to 750,000 barrels daily in Libya, less than one percent of global oil consumption, down from its typical capacity of 1.6 million barrels, the International Energy Agency reported last week.

Copyright 2011 ABC News Radio

Friday
Mar042011

Stocks Down in Midday Trading, Orders for Manufacturing Goods Up

Mario Tama/Getty Images(NEW YORK) -- Stock averages were down in midday trading; analysts say the good news on jobs was baked into Thursday's strong gain.

Crude oil prices rose about 1 percent, now above $103 a barrel for light sweet crude.

The Commerce Department says business orders for manufacturing goods rose more than 3 percent in January -- the strongest monthly gain in almost four years. The numbers were lifted by a surge in demand for airplanes.

A new report says PC sales are likely to drop this year, thanks to the growth in tablet sales.

Earlier in the day, the government issued a mostly positive jobs report. The jobless rate dropped slightly to 8.9 percent -- the lowest rate in nearly two years -- but still above normal levels. The private sector added 220,000 jobs last month. Evidence of spending cuts nationwide, Federal, state, and local governments cut 30,000 positions. The Labor Department survey reports that of those 220,000 new jobs, jobs in manufacturing and construction outpaced job creation in most other parts of the economy.

Copyright 2011 ABC News Radio







ABC News Radio