Oil crosses $110, despite supply increase

[atlaw4u]

Crude prices hit $110.20 on weak dollar before settling at $109.92, even as crude and gasoline inventories are much higher than forecast.

David Goldman - CNN Money - March 12, 2008

NEW YORK (CNNMoney.com) -- Oil prices rebounded to another record high Wednesday afternoon after initially plummeting when a government report said supplies of crude and gasoline had risen much more than expected.

In afternoon trading, U.S. light crude for April delivery surged to a high of $110.20 before closing at $109.92. Oil had traded as low as at $107.09 following the report's release on Wednesday morning.

In its weekly inventory report, the U.S. Energy Information Administration, a government agency that measures oil and gas supplies, said crude stocks rose by 6.2 million barrels last week. Analysts were looking for a rise of 1.6 million barrels, according to a Dow Jones poll.

Gasoline supplies rose by 1.7 million barrels, significantly more than the 300,000 barrel rise that analysts had forecast. The government said gasoline stockpiles are well above average for this time of year.

"The big number is the build in gasoline," said Stephen Schork, publisher of the industry newsletter the Schork Report. "We usually see a 2 million barrel draw at this time, not a surplus."

Since September, gasoline stockpiles have increased from a 16 million barrel deficit to a 22 million barrel surplus, which Schork believes is due primarily to the continuing low demand for gasoline...[Read More]

[Right Lane Cruiser]

On it marches... As pointed out elsewhere, the stated stockpiles are insignificant at best when considering daily consumption.

I'll look for $150 per barrel in the near future as the next "don't approach that level!" number we flirt with. When this happens, I'll expect much more pronounced changes in behavior.

[atlaw4u]

I ran across a 2004 article where GM's Bob Lutz stated "Hybrids are an interesting curiosity and we will do some. But do they make sense at $1.50 a gallon? No, they do not." Wow, gas was $1.50 in 2004. That seems soooooo long ago.
http://money.cnn.com/2004/01/06/pf/a...it_gm_hybrids/

[toastblows]

in december 1998 i remember filling a minivan in madison wi with almost an empty tank for $12. Good times. I think today it would be $60-70

[2008Mazda3i]

It sad when I can say at 22 that in high school I paid up my Jeep GC for 20 bucks when gas was .87 cents a galoon, now prices are over 300% that and that jeep would be over 60 buxs to fill!!

[Earthling]

When I was in Saudi Arabia, working for ARAMCO, the gas station in Udhailiyah charged 1 Riyal per gallon. That's about 35 cents. I was driving a 4X4 GMC pickup with sand tires, and didn't have to buy gas.

Driving a gas hog on the Ghawar, the worlds' biggest oilfield, didn't seem too outrageous at the time

Harry

[atlaw4u]

Earthling, what year was that?

[Earthling]

It was '81-'83.

Harry