Oil Prices Stop Decline, Rises After Inventory Report

After a dramatic slide of oil price for two weeks, it soared up to over $4 a barrel on wednesday. the new hike was due to US inventory report that the US was encountering a shortage on gasoline. The new oil price created mixed views from oil consumers whether it would go back to its $147 price or will continue to decline if the gasoline shortfall will be given solutions.

Before Wednesday's rebound, crude prices had dropped in seven of the last 10 sessions, and are down about 14 percent from their peak above $147 a barrel earlier this month. Prices remain about 60 percent higher than at this time last year.

The dollar was stronger Wednesday against the euro, but the oil market seemed to be ignoring a trend that ordinarily would pressure prices. Investors buy commodities as a hedge against inflation and a weaker dollar but tend to sell when the American currency strengthens.

Oil also gained Tuesday's announcement from Royal Dutch Shell PLC that it may not be able to fulfill some oil export contracts after Nigerian militants sabotaged a pipeline in the Niger Delta.

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Iran tensions push oil price up to more than $1

It is reported today that tensions in Iran ushered the oil price to increase for more than $1. From its previous price of $123 per barrel, oil trading is now at above $124 per barrel. On the other hand, the geopolitical tensions in Nigeria is likewise seen as deterrent to slight increase of oil price.


"These events really remind the market that the geopolitical risks regarding Nigeria and Iran remain," Shum said. "Overall, the market has weakened due to concerns over the faltering U.S. economy and slackening oil demand in the U.S., but supply side risks will still provide a high floor for pricing."

The magnitude of the sell-off over the past two weeks is stark. Crude has fallen in seven of the last nine sessions, and is down more than 16% from its peak above $147 a barrel earlier this month. Still, prices remain about 65% higher than at this time last year.

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As Demand Eases, Oil Price May Fall further

The demand for oil in the global market is reportedly slowing. Its seven week decline in oil price could futher in the next coming months and could probably down to &117 per barrel in the next coming weeks.

This seemed to be confirmed by a report released Friday by the Commodity Futures Trading Commission which showed that speculative funds were shifting to a net short position for the first time in 17 months.

If crude prices do drop by $20-25 – leading to pump prices of $3.25-$3.50 – it could undercut current conservation measures by stimulating demand and pushing prices up once again, analysts cautioned.

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Oil prices steady at $123/barrel

Today, oil prices paused at $123 per barrel in the world oil market, contributing to the seven week low. The decline has counted a total of $23 dollars reduce from its former $147 oil price seven weeks ago.

Crude speculators on the New York Mercantile Exchange shifted to a net short position in the week to July 22, according to data from the Commodity Futures Trading Commission released on Friday. It was the first time speculators have been short crude oil positions since Feb. 13, 2007.

Rising demand in emerging economies like China launched oil on a six-year rally that sent prices up sevenfold at their peak. The sharp drop has some analysts forecasting oil prices may have peaked, with Lehman Brothers predicting $90 a barrel by the end of the first quarter of 2009.

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Oil Price Makes A slight Rebound

After seven weeks of contineous drop of oil price, today, oil has recorded a marginal rebound. today, in New York Mercantlie Exchange, oil price closes to $125.30 per barrel.

Analysts have said the weakening economy is undermining the demand for oil, bringing prices down. The U.S. Energy Information Administration Wednesday said U.S. gasoline inventories rose by 2.8 million barrels in the week ending July 18, an indication that consumers may be cutting back on fuel consumption.

On Thursday, the price of heating oil fell 0.0069 cents to $3.5671 per gallon. Reformulated blendstock gasoline prices fell 0.002 cents in late trading to $3.0574 per gallon. Natural gas prices fell 0.021 cents to $9.302 per million British thermal unit.

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Oil Hits Seven Week Low; Now at $124/Barrel

for seven weeks' trading, the price of oil continue to slide. today's trading is now down to $124 per barrel. From its peak of $147 per barrel last July 11, the price drop has seen and estimated to $23 for seven weeks now.

The decline came after data late on Wednesday showed a larger-than-expected increase in domestic U.S. gasoline stocks last week, together with weak implied demand. U.S. crude stocks dropped after a sharp decline in imports.

"We do not see any factors to push up prices at all at the moment," said Tetsu Emori, a fund manager at Astmax Co Ltd in Tokyo, adding he expected oil to move towards $117 or $118 a barrel this week.

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Oil Price Update: Oil trades at Below $126

Storm Dolly May have contributed to another fall of oil price today. At early trading, it is landed at below $126. Oil price is expected to continue slide in the coming months.

Later on Wednesday, the latest U.S. inventory report is expected to show crude stocks fell by 700,000 barrels and stocks of distillates rose by 2.3 million barrels, according to a Reuters poll.

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Inflation Seen Rise by 11 percent in UAE

Inflation in UAE, according to reports by a top Ministry of Economy official, is seen rising by 11 percent. The rise was due to the housing rental and housing costs, while the costly commodity and services costs have also contributed to this inflation.



The “house rent and related house items” group currently has the highest weight in the CPI at 36 percent. Based on the actual contribution of the expenditure groups to the 2007 inflation rate, the category emerged as the main cause of inflation, comprising 6.5 percent of the total 11.1 percent inflation figure or around 58.6 percent.

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Iran Nuke Talks, Storm Make Oil Price Rebound by $2

After an almost a week of price slide, oil is now rebounding and has recently jumped by $2. The rebound was due to the controversial talks on Iran Nuclear and the approaching tropical storm Dolly that is expected to hit the Mexico Gulf and texas.

The U.S. government, represented by Undersecretary of State William Burns, was discouraged by Iran's lack of concessions. Policy analysts believe that Iran's response could set the stage for a new round of sanctions on Iran by the United Nations.

Oil traders had been encouraged leading up to the weekend meeting, but their fears about access to Iran's oil supply were restored when the talks did not yield positive results.

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Oil Price Update: Below $130/barrel; drops for 3 Straight day

From near $150 per barrel last couple of weeks, oil price now is trading below $130 per barrel. The sharply decline in oil price was due to the slowdown demand for oil in US and other neighboring big countries in Europe and some part of Asia. Some analysts believe that the decline will continue in the next coming months.

The downward dash also hit other energy futures, such as natural gas, which fell more than 7% after a government report showed a larger-than-expected increase in U.S. inventories. Oil stocks also tumbled.

The fall in oil prices helped propel the stock market to its second straight gain.

The Dow Jones industrial average rose more than 200 points amid hope that suddenly lower energy costs could give a much-needed boost to struggling consumers and help the economy avert a severe downturn.

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Oil Price Plummets for 2-Days

This might be the start of the decline of oil price for some months now, as it plummeted for more than $10 dollar per barrel. Meanwhile, some oil investors are still looking up for more oil from OPEC while President Bush was reportedly lift off offshore oil drilling ban.

The government's weekly inventory report suggested that record high gasoline prices may be reducing the nation's energy consumption, and OPEC released a report on Tuesday indicating that global demand for 2009 would be less than it was in 2008.

Light sweet crude oil for August delivery settled down $4.14 to close at $134.60 a barrel on Wednesday on the New York Mercantile Exchange.

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Oil Price Records Historical Biggest Decline

Historically, some analysts said that the latest $9 decline in oil price is said to be the biggest decline for 17 years of oil trading. The decline was due to snailed-pace US economy as it reportedly needs to lower its oil demand from the world oil markets.

The drop in oil was the largest single-day slide in dollar terms since Jan. 17, 1991, when oil fell by $10.56. On that day, President George H.W. Bush withdrew oil from the Strategic Petroleum Reserve ahead of the first Gulf War.

But in 1991, oil was trading at just $32 a barrel, so the more than $10 slide in dollar terms represented a record 33% drop. Oil fell 4.4% Tuesday, which does not even crack the top 100 price declines in percentage terms.

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Iran Ranks 10th in Per Capita Oil Income in OPEC

According to US Energy Information Administration, new data revealed that Iran is among the 13 OPEC members that ranked number ten when it comes to per capita oil income. Behind Saudi Arabia and UAE, it has the third largest oil income in the first half of 2008.

Iran's per capita oil income for the first six month of 2008 was $816, about one third of the average per capita oil income of $2,172 among OPEC members.

Qatar, with a per capita oil income of $28,136, is at the top of the OPEC member list followed by Kuwait and the United Arab Emirates, with per capita oil incomes of $20,807 and $13,208 respectively.

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Oil Settles Above $145, OPEC Expect Lower Demand

Oil price did not climbed higher, yet it remained at above $145 per barrel in the world oil markets. Meanwhile, OPEC is expecting a lower demand of oil in the oil stock market, despite prediction of $8 increase in petrol.

Tensions flared up in the Middle East as Iran test-fired missiles this week, including one type capable of reaching Israel. The U.S. Secretary of State Condoleezza Rice warned on Thursday that the United States will defend its allies, and Iran responded with another missile launch.

Nigeria's main militant group said on Thursday it would resume attacks in the country's oil-rich region. Traders are concerned that the crude production will be disrupted in Africa's largest oil exporter.

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Too Risky to invest in Iran: Total Chief

The French energy giant Total said in an interview with its CEO that it is too risky to invest in Iran as far as the western concern in developing Iranian gas reserves is much concern. The Total Chief said they do not want Iranian to call them that they just do anything for money.

De Margerie did not say in the report that Total would totally pull out of Iran. He expressed frustration at U.S. pressure on European energy investors in the countries.

"You take two major countries (Iran and Iraq) out of the system and then you say, 'There is not enough oil and gas.' Oh no, surprise, surprise," he was quoted as saying.

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Oil Price Rebounds to $142/barrel

As the US dollar eases, oil price sharply fell to $142 per barrel, as it rebouds for almost $4 per barrel. as the oil price lower down, oil traders also expected tensions in Iran and the West to ease down.






However Iranian official sent mixed signals, with President Mahmoud Adhmadinejad rejecting a demand by major powers that it stop enriching uramium as "illegitimate", while the foreign minister expressed optimism on the talks.

In the U.S. political arena, presumptive Democratic presidential nominee Barack Obama said that toning down the rhetoric against Iran "might" calm the markets.

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Oil Price Eases Above US$144/Barrel

From the sky high oil price last week of above $146 per barrel, oil price eased down to above $144 per barrel today. Oil industry is still working for a possible price control, as it affects the global oil markets.

'The concerns for an attack are quite high and clearly the ramifications for a potential attack is a key driver for prices,'' said Gerard Burg, energy and minerals economist at National Australia Bank. ''Prices have been driven by most notably security of supply issues.''

Crude oil for August delivery traded at $US144.20 a barrel on the New York Mercantile Exchange at 9:55am. On July 4, the contract fell as much as $US1.59 to $US143.70 a barrel in electronic trading. Contracts from July 4 will be settled under today's trades because of the US Independence Day holiday.
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Oil Price Soars above $145 per Barrel

Nobody, even OPEC can stop oil price from increasing. To date, oil is at above $145 per barrel. What comes next after this tremendous increase in oil price?

Prices might have raced even higher Thursday were it not for the sharp gain by the dollar against the euro. "The strength in crude oil is amazing given the price of the euro," said James Cordier, president of Tampa, Fla.-based trading firms Liberty Trading Group and OptionSellers.com.

The slumping dollar has been a key driver pushing oil prices up by half this year. Many investors buy commodities such as oil as a hedge against inflation when the greenback weakens, and a falling dollar makes oil less expensive to investors overseas. When the dollar strengthens, traders have less incentive to buy commodities.
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Oil Price Hike Brings Fears on Food Crisis

The alarming oil price hike has definitely created tension on food crisis, as it recorded a new record nearing to $141 per barrel. If an ordinary citizen cannot anymore afford to bear the current oil price, how much more of the food he eats? What does OPEC do to resolve this problem?

The energy markets have been seriously rattled by comments from a top Pentagon official warning that Tel Aviv may launch raids on Iran's Natanz nuclear facilities to pre-empt its acquisition of Russian air-defence missiles.

The source told ABC News that Israel would not wait until the Ahmadinejad regime had accumulated enough enriched plutonium to make a bomb. "The red line is not when they get to that point, but before they get to that point," he said.

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