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  • Oil drops as China says it will raise fuel prices

    NEW YORK --

    Oil prices dropped Thursday after China said it will raise fuel prices, a move that could dampen the booming Asian nation's oil consumption. Retail gas prices slid overnight.


    Light, sweet crude for July delivery fell $2.82 to $133.86 a barrel on the New York Mercantile Exchange, but dipped more than $3 at times.

    China disclosed that it will raise the prices of gasoline, diesel, aviation kerosene and electricity.

    Growing Chinese demand for oil has underpinned the multiyear rally in oil prices, but higher prices could crimp that demand. Concerns about spiking Chinese demand for diesel due to cleanup operations in the aftermath of last month's earthquake contributed to oil's recent run-up.

    "This could change the psychology of the market completely," said James Cordier, president of Tampa, Fla.-based trading firms Liberty Trading Group and OptionSellers.com.

    Lower demand in China "would be a major factor in driving prices down," said Phil Flynn, an analyst at Alaron Trading Corp. in Chicago.

    Also pressuring prices Thursday were the dollar's gains against the euro. Investors who buy commodities such as oil as a hedge against inflation when the dollar falls tend to sell when the greenback gains ground. Also, a stronger dollar makes oil more expensive to overseas investors.

    Energy investors are also awaiting a weekend summit in Saudi Arabia between oil consuming and producing nations to address high prices.

    Meanwhile, Iraq's Oil Ministry said Thursday that the nation is close to signing oil service deals with several major Western oil companies in an effort to boost its output capacity. The agreements would be the first major Iraqi contracts with big Western companies since the 2003 U.S.-led invasion.

    Price declines were limited Thursday by news of an attack on a Royal Dutch Shell PLC oil field in Nigeria that produces about 200,000 barrels of crude per day.

    At the pump, meanwhile, gas prices slipped 0.2 cent overnight to a national average of $4.073 a gallon, according to a survey of stations by AAA and the Oil Price Information Service. Gas prices have followed oil futures higher this year. But with oil prices stalled in a rough range between $132 and $139, gas prices appear to have topped out, for now.

    Demand for gasoline is already falling in the U.S., and may have peaked last year, according to a new study. Energy Department data shows demand has fallen steadily since January, leading Cambridge Energy Research Associates to conclude that gasoline demand may fall this year for the first time in 17 years.

    If gas prices remain at or near current levels, "2007 could prove to have been the peak year for U.S. gasoline demand," CERA said in a statement.

    On Wednesday, the Transportation Department said Americans drove 1.4 billion fewer highway miles in April than during April 2007, and 400 million miles less than in March of this year. Vehicle miles traveled on all public roads in April fell 1.8 percent from a year earlier.

    In other Nymex trading Thursday, July gasoline futures fell 8.42 cents to $3.3825 a gallon, and July heating oil futures fell 9.37 cents to $3.7663 a gallon. July natural gas futures fell 29.2 cents to $12.918 per 1,000 cubic feet. The Energy Department said natural gas inventories rose by 57 billion cubic feet last week, toward the lower end of the range of analyst estimates.

    In London, August Brent crude futures fell $2.75 to $133.67 a barrel on the ICE Futures Exchange.

    http://www.bnd.com/breaking_news/story/374404.html

    Good!

    What exactly is the difference between Light sweet crude and Brent crude?

  • #2
    Originally posted by Jack Daniels View Post
    What exactly is the difference between Light sweet crude and Brent crude?
    Less filling/more taste?

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    • #3
      ...and then Shell goes and shuts down some more Nigerian pipes to jack it right back up.


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      • #4
        Originally posted by Prngr44 View Post
        ...and then Shell goes and shuts down some more Nigerian pipes to jack it right back up.
        You don't have to tell me there's no collusion.

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        • #5
          The only thing which can solve this is more offshore drilling.
          From this day forward, I no longer shall tinker with the machinery of death.

          For more than 20 years I have endeavored-indeed, I have struggled-along with a majority of this Court, to develop procedural & substantive rules that would lend more than the mere appearance of fairness to the death penalty endeavor.


          I feel morally and intellectually obligated simply to concede that the death penalty experiment has failed.

          The path the Court has chosen lessens us all. I dissent.

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          • #6
            Originally posted by ppg shg View Post
            The only thing which can solve this is more offshore drilling.
            Stop hating - you know we will be able to use that oil in 20 or 30 years - that's like fast and immediate.
            Turning the other cheek is better than burying the other body.

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            • #7
              I thought it was more like 10ish?

              At any rate, we were having these exact discussions 10 years ago. Gas could be $3.50 right now!!!


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              • #8
                Originally posted by Jack Daniels View Post
                What exactly is the difference between Light sweet crude and Brent crude?
                "Light" oil has lower specific gravity. See, most oil can only be semirefined into things like heavy fuel oil. Light oil has disproportionate amounts of the most valuable hydrocarbons in it, and you can get (besides gasoline) napthalene, kerosene, and a whole bunch of the good stuff from it.

                "Sweet" oil is differentiated from "sour" oil, meaning that it has fewer of the impurities that are commonly refined out. Chief among these is sulfur, which is more abundant than hydrocarbons in some oil/gas/NGL products. There is a field in Canada I'm familiar with where the gas and NGL is so sour that the operator makes more money selling sulfur than gas.

                "Brent" crude just comes from the Brent North Sea oil fields.

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                • #9
                  Originally posted by ppg shg View Post
                  The only thing which can solve this is beating a few oil company execs within an inch or so of their lives.

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                  • #10
                    So does this mean gas prices are going to fucking drop some or what?
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                    • #11
                      Quote:
                      Originally Posted by ppg shg
                      The only thing which can solve this is beating a few oil company execs within an inch or so of their lives.


                      Originally posted by 210 View Post
                      Or better yet, a few getting WHACKED...

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