Crude Oil Price Drops To Less Than $129

After reaching the so called "peak oil" last few days, as oil price recorded a new high price of more than $135 per barrel, crude oil price has dropped of more than $6 per barrel, making it now at less than $129 per barrel.

"People are just increasingly concerned about the inflation risk picking up and the U.S. economy deteriorating," said Andrea Williams, head of European equities at Royal London Asset Management.

Technology shares had modest gains on Wall Street and the Nasdaq composite was in positive territory, while the blue-chip Dow industrials and the broad-market Standard & Poor's 500 Index were little changed.

more....

Airline Businesses May Fly Low As Oil Prices Fly High

Here's a contrast on Airline business and oil price: Oil price is flying high while Airline bussiness is flying low. Airline businesses are directly affected by the oil price increase. As easyJet said, it may drive a weaker airline business if the oil price trend will continue. Recently, merging and acquisition of airlines companies was already in the news.

The budget airline reported a 15% jump in passenger numbers for the six months to March 31, with revenue growing 24% to £892.2m. But its pre-tax losses spiralled to £57.5m, triple the loss it made a year ago. The loss, which was expected following the firm's profit warning in March, was primarily caused by dearer jet fuel, which costs 80% more than a year ago.

Every $10 increase in the cost of a barrel of oil cuts around £2.5m off easyJet's profits. Harrison claims the company's relatively young fleet - its 157 planes are three years old on average - give it an edge.

more...

Oil Market Watch: Is Oil Price Declining?

Is oil price declining? Here are related topics on oil price and find out if the oil market is already stable.
------------------
The strengthening dollar has atributed the lowering of oil price. Few weeks ago, oil price was at near-$120 per barrel. As the grrenback recovered this week against euro and yen, New York Mercantile Exchange has recorded a drop of $8 from its high level of US$120 per barrel.


-------------

Crude oil prices yesterday slipped more $US3 a barrel, the slip is described by analysts as the biggest recorded in one month, after BP restarted a North Sea oil pipeline and the dollar strengthened, reducing the appeal of commodities to investors.

---------------

Oil prices fell slightly Thursday as the dollar strengthened against the euro on a smaller-than-anticipated interest-rate cut from the U.S. Federal Reserve.

--------------

Prices have eased since striking a record high of $119.93 in New York last Monday during a Scottish refinery strike and related pipeline closure.

------------

How Oil Price Affects Us

What's new with the energy markets? everybody is expecting a positive outlook from this market but it seemed that the expectation remained negative. what more could this oil price give to us?

Evidently, due to the unstable energy markets, some stikes were being posed by some oil workers. They too, are affected with the current trend in oil markets. This is not only happened in Britain, where major oil refinery shut down, stikes is almost everywhere, where oil is one of the most serious problems.


We cannot deny the fact that oil has a pivotal role in our life. Oil alone is our life. This makes us mad when our government prefers to privatize oil energy sector, especially when times that the government itself is not already counting money from it. Privatization for them is the answer, so that, more private entities could invest in their countries. But it would only create fears and troubles, because protesters would not allow it.


However, we can still make a difference out of it. If we would only unite for the common good. Focusing on alternative energy can be one of the solutions. Though, it requires funds, new researches and studies, still, in a futuristic view, nations that would try alternative energy could prossibly be out of the problems brought by the current oil situations.

more oil related updates...

A Good News on Still Climbing Oil Price

What the good news? The still escalating oil price is definitely not a good news. As of today, oil price is still at $118 per barrel but the sight of going $120 next month paused. Why? Here comes the good news: the US inventories of oil are said to have a positive response. Find out why....


But U.S. Energy Secretary Sam Bodman has rejected both suggestions, saying the tax revenue is needed to help build and repair U.S. highways and bridges and that the nation needs to build its emergency oil stockpile so it can replace 90 days of crude imports if necessary. The reserve now has only about a 55-day supply now.

Americans spent $100 billion on gasoline in the first quarter of this year, according to a recent survey done for the Consumer Federation of America -- up from $40 billion in the same quarter of 2002. The works out to an increase of about $600 per household, the group said.

more...

Oil Price Update: Oil closes to $119 a barrel

Oil prices are surging again to near 119 a barrel. today, oil price is at $118 above and expected to increase any time today due to the many causes behind its increase.....



Oil producers in Rome for the International Energy Forum said they can do nothing to halt oil's rally and the world might have to live with even higher prices if it wants supplies for the future.

U.S. President George W. Bush on Tuesday said he was concerned about record-high crude oil and gasoline prices, and said the United States needs to tap an Alaskan wildlife refuge to boost supply.

more..

Oil Price Watch: Oil Rose Above $117 A Barrel

As expected, oil prices have never been declined from its high price, yet it has been increasing as the US markets remained at a gloomy situation. Recently, just this day, oil is recorded at $117 above per barrel.

Also over the weekend, Iran's hard-line President Mahmoud Ahmadinejad was quoted Saturday as saying crude oil prices at $115 a barrel are too low, and that oil must "discover its real value."

"The oil price of $115 a barrel in today's global markets is a deceiving figure. Oil is a strategic commodity that needs to discover its real value," the Web site of Iran's state-run television quoted Ahmadinejad as saying.

The Iranian president made the remarks during a visit to an oil and gas exhibition in Tehran late Friday.

In other Nymex trading, heating oil futures were flat at $3.2923 a gallon while gasoline prices fell 0.18 cent to $2.9875 a gallon. Natural gas futures rose 1.3 cent to $10.60 per 1,000 cubic feet.

more on oil price...

Refocus on Healthy Fundamentals, says OPEC to Oil Market

Refocus on healthy fundamentals. This was the OPEC request to oil market as the latter wanted to fix the volatile global oil market.




"It is a basic substitution of rising assets for those in decline," OPEC said of the sharp slide in the dollar, which has spurred many investors into the oil market. "This has significantly influenced the short-term oil price, and this dynamic has also lifted the prices of other commodities." Globally, crude oil is traded in dollars.


"OPEC appreciates how financial markets work, but it is important to keep an eye on the impacts to the oil market of this type of speculation, as it can create a climate of nervousness and uncertainty," the editorial said.

more...

Energy Roundup: Updates on Energy market

The energy activity has still been creating tensions among energy investors, especially, among small consumers. Here are some of the world's leading nations, highlighting its energy activities, so to keep you update of the oil industry.


The Organization of Petroleum Exporting Countries announced that despite record high oil prices causing a decrease in demand, it will not change its production rate before September.

The weakening U.S. dollar is the primary factor driving crude prices, said OPEC President Chakib Khelil, who is Algeria's oil minister.

Some nations have called on OPEC to increase oil production to ease high prices, but member countries have not budged. Khelil said he and other OPEC leaders expect demand to increase again during the summer months.

more oil updates...

ON HIGH OIL PRICE: Demad for Natural Gas May turn Global

As of today, there are reports that oil price rises at $112 per barrel and will continue rising. Reasons for this escalating oil prices have been laid down. In fact, Oil investors have there own reasons why they are pressure to make oil price high. Because of the unstoppable rising oil price, studies are being conducted to shift on the use of natural gas. If this would materialize, natural gas might be used globally, as replacements of crude oil and other natural energy gas.

Consequently, the use of gas has been growing significantly faster than the use of oil, although not as fast as the use of coal, which is also reaching record proportions.

Gas has been the fuel of choice for investment in power generation over the past two decades in the developed world and in most emerging economies, also. Modern combined-cycle gas turbine plants are cheap and quick to build and create much less pollution than coal-fired electricity.

more...

Oil Price Gushes on US Reports of Inventory Backslide

At present trading, US crude oil price landed on $111 a barrel. In an instant, oil price has upswinged high after the US government released a reports of declining oil supplies. What's next? A $200 a barrel crude oil?

"The surprise draw on crude was due to the big drop in imports. If that is due to the fog in the Houston Ship Channel, then next week we may see an increase," said Mark Waggoner, president of Excel Futures in Huntington Beach, California.

Commercial gasoline supplies, meanwhile, fell 3.4 million barrels to 221.3 million barrels.

Still, that left them more than 10 percent over year-ago levels, according to the data.

more...

CENTRICA: European gas firms push up prices in Britain

Centrica Energy disclosed what have caused surging costs of oil in Great Britain. Centrica claimed that some European oil companies are buying up supply during summer but not selling it back during winter, making it costly comes the time when oil is much needed in these countries. was the commentary true?



Continental European companies are buying up UK North Sea gas in the summer, when Britain is a net gas exporter, to refill storage capacity depleted in winter. But according to Centrica, gas flows back into Britain from continental Europe are much lower during the winter, when Britain is a net importer.

Centrica, parent company of Britain's biggest residential energy supplier, British Gas, calculates the volume of gas that flowed from the UK to Europe through the Bacton-Zeebrugge interconnector - one of the key gas pipelines into the UK - over the past year was five times the flow in the opposite direction.

Continental Europe has much more gas storage than Britain, which has traditionally relied on North Sea production to meet spikes in demand. France and Germany, for example, can meet about one fifth of demand from storage compared with about 5% in the UK.

more...

Oil price slides closer at $90

After the distressing US economic turmoil last week, oil has made a good record. Although, it is minimal, but the slight slump on its price is a good start in ensuring oil stability in the oil global market.

But with prices lately moving in sync with stock markets, traders began to fear that Friday's $1.30 surge might have been overdone after Wall Street ended the week on a down note following two days of sharp gains.

While many analysts say the risk of an economic slow-down could still take some steam out of oil prices that are not far away from their record $100.09 high, a thirst for alternative investments and OPEC's resolve has limited the downside so far.

more...

OPEC to watch over the price impact on US economic slowdown

Rafael Ramirez, Venezuela Energy Minister, confirmed that OPEC will keep an eye on the impact of oil price after US economic slowdown. The move will ensure if US economic turmoil will not affect the price flow of oil, as some economists believe that the US economic slowdown will help reduce the price and further lower oil demand.

The minister, Rafael Ramirez, also said OPEC should not agree to hike its output at the

meeting in Vienna on Feb. 1. Turmoil in world markets meant there was too much uncertainty over where the world's economies were heading for the export group to be able to take a clear decision, he said.

"Nevertheless, in the next meeting, OPEC will evaluate the possible (U.S.) impact on the energy market," Ramirez told reporters.

Venezuela is a price hawk in OPEC and opposes the United States on everything from free trade to democracy despite being its No. 4 supplier of crude.

more...

Oil nears $91 amids plan to revive US economy

Despite actions from the White House and US Congress, one of those is the stimulus package plan, the oil price is still at its feet, standing proudly with remarkable high tags. Was the plan not enough to pull down the price of oil? US is among the top energy consumers in the world, it is evident that US is the most affected of oil crisis.

U.S. oil had traded as high as $91.38 a barrel earlier as the stimulus plan announced by U.S. legislators and the White House Thursday helped lift global stock indexes and countered mildly bearish U.S. weekly oil inventory data.

"This is all about the stimulus package," said Phil Flynn, analyst at Alaron Trading in Chicago. "Oil markets are taking their cue from the stock market."

Prices gave up some of the gains later Friday as U.S. stocks fell on talk of more trouble in the global financial sector and declines in defensive shares offset strong earnings from companies.

U.S. oil has tumbled from a record over $100 a barrel struck Jan. 3 on growing fears crude demand growth could be hit if the subprime mortgage crisis knocks the U.S. economy into recession.

more...

US Airways points out fuel costs as cause of their loss

The group of US Airways are starting to feel the intense problem caused by the high fuel costs. If the trend in oil industry will continue, this will break the US Airways wings which will possibly result to total bankruptcy of some Airlines. what are the possible solutions for this, if the fuel costs continue to hamper the Airline industry? Acquisitions and mergers?


Analysts polled by Thomson Financial had expected a loss of 76 cents per share.

Chairman and Chief Executive Doug Parker said high fuel costs are likely to keep conditions difficult during the year ahead -- although he sees some encouraging signs.

"We're encouraged by the industry's ability and desire to keep capacity in check, so, as long as everyone keeps capacity in line, we should be able to continue to be OK," Parker told CNBC.

more...

Oil price slumps below $97; as market slides

The global market slowdown, following the economic crisis in Us due to cut in interest rates, perhaps attributed to the gradual slides in oil prices. Oil price is at $87 per barrel, recorded on Wednesday. Oil crisis is still one of the major problems in the global market which is said to be gradually subsided.

While oil prices are down almost 12 per cent from their all-time peak above $100 a barrel hit Jan. 3, they are still up more than 60 per

cent from a year ago, supported by tight inventory levels, Opec production restraints and strong demand from investors seeking higher returns and a possible hedge against inflation.

Goldman Sachs said that, while oil prices could slide into the low $80s if speculators liquidated their long positions, strong fundamentals would probably prevent funds from selling out completely.

US crude oil stocks, which rose last week for the first time in nine weeks, after hitting their lowest since 2004, were believed to have risen by 2.1 million barrels last week, a preliminary Reuters poll of analysts found.

more...

No need to increase oil productions, OPEC Oil Minister says

Oil market is well supplied and there is no need to increase oil production. This was according to OPEC Oil Minister Abdullah Al-Attiyah in response to the call of US President Bush to improve output by increasing oil production. Bush's call was made in consonance with the tremendous problems on oil supply and price on the world market.




The Organization of the Petroleum Exporting Countries, source of more than a third of the world's oil, stood ready to boost supply when the market needed it, he added.
"If the market needs more oil we will be there," he said.
Last week, Attiyah said OPEC would need to be cautious ahead of the seasonal fall in consumption in the second quarter and because of the possible effect on oil demand of an economic slowdown in the world's largest energy consumer, the United States.
Attiyah said he would meet with Bodman later this week. The U.S. Energy Secretary is on a tour of Middle East countries after President Bush visited the region last week.

more...

Oil price nears $91 a barrel

Earlier yesterday, the price of oil had slightly raised $90.81 per barrel, nearing to $91. What was the cause of this new trend? find out.

Analysts in Hong Kong said price fluctuations showed the U.S. benchmark oil price has become a "pure derivative" of sentiment on Wall Street.

"The crisis of confidence on the economy is far from over," Jackob said in a research note. "The extremely high correlation seen yesterday between the Dow and oil needs to be taken as a new risk factor and developments on Wall Street to be watched closer than ever."

Concerns about the economy were stoked by a U.S. Commerce Department report Thursday that construction of new homes fell nearly a quarter in 2007, the largest drop in 27 years. Also, a Philadelphia Federal Reserve survey of regional manufacturing activity registered a negative 20.9 from a revised reading of negative 1.6 in December, coming in well short of expectations.

more...

Oil price slumps below 92 US dollar

After the turmoil in the global oil industry, its price slightly slowdown to below $92 dollar. The new trend in oil industry might be a total recession from its original price.


Oil also eased as Saudi Arabia's oil minister, Ali al-Naimi, said the world's top exporter would raise output when the market needed more crude, responding to a U.S. call for more supply.

U.S. President George W. Bush, who is on tour of the Middle East, earlier on Tuesday said an increase in output by the Organization of the Petroleum Exporting Countries would help ease the pain of high energy prices.

"OPEC should understand that if they can put more supply on the market it will be helpful," Bush told reporters.

more...