U.S. crude prices fall sharply as inventory grows

[Omaha Steve]

Source: Reuters

TOKYO-U.S. oil futures tumbled more than 3 percent on Thursday to a one-week low around $50 a barrel after data showed a surprisingly sharp build in U.S. crude inventories.

U.S. crude for March delivery CLc1 fell to a session low of $50.23 a barrel, down almost $2 from Wednesday's settlement. The contract was trading down $1.51 at $50.63 by 7.06 p.m. ET, after settling down $1.39 on Wednesday.

London Brent crude LCOc1 for April delivery was yet to trade, after settling $2 lower at $60.53 a barrel.

U.S. crude stocks rose by 14.3 million barrels last week, data by industry group the American Petroleum Institute showed after Wednesday's settlement, compared with analyst expectations of an increase of 3.2 million barrels. [API/S]

FULL story at link.



Read more: http://www.reuters.com/article/2015/02/19/us-markets-oil-idUSKBN0LN01M20150219q

[99th_Monkey]

1. So why is my gas going UP then?

Live in Oregon, just jumped from $2.15 to $2.49 in just a few days, maybe a week.

[Capt.Rocky300]

2. Good question.......

Here in Western Washington it's been going up 2 to 3 cents everyday for two weeks.

[The Velveteen Ocelot]

5. A couple of possibilities:

For one thing, more than 5,000 workers have been on strike for the last 18 days at 11 petroleum plants, including nine refineries. This accounts for 13% of U.S. production capacity. A Tesoro refinery in California has shut down altogether. Another thing is that it takes a few days for per-barrel price reductions to trickle down to local gas stations. Assuming the strike doesn't significantly affect retail costs (and maybe it won't considering that there is a surplus), we may see lower prices in a few days.

[99th_Monkey]

7. Cool. Thanks for that.

maybe I'll wait a few more days to fill my tank.

[Omaha Steve]

9. Refinery strike slows fuel production only slightly, has minimal impact on fuel prices

I've posted the INDUSTRY version of the strike isn't raising gas prices several times.

Yesterday's explosion at at the Exxon Mobil Corp. disruption to production would likely drive up gas prices in California: http://www.democraticunderground.com/10141017910

http://www.democraticunderground.com/10141017470


OS

http://www.democraticunderground.com/10026240877



FILE - In this Feb. 7, 2015 file photo, representatives from the United Steelworkers (USW) union hold a rally at the entrance to the Marathon refinery in Catlettsburg, Ky. Three weeks into a USW walkout at 11 refineries around the country, the impact on the prices of gasoline, diesel and other fuels is barely discernable. (AP Photo/The Independent, Kevin Goldy, File)

http://www.usnews.com/news/business/articles/2015/02/17/why-refinery-strike-has-had-little-bite-at-gas-pump

By JONATHAN FAHEY, AP Energy Writer

NEW YORK (AP) — Gasoline prices can spike for all kinds of reasons that make skeptical drivers roll their eyes: "tension" in the Middle East, a refinery suddenly shuts down for maintenance, or the annual springtime switch to summer blends of gasoline.

A refinery strike, however, would seem understandable. Yet three weeks into a walkout at 11 refineries around the country, the impact on the prices of gasoline, diesel and other fuels is barely discernable.

Gasoline prices have gone up this month, but mostly due to a sharp increase in the price of oil and because gas prices almost always rise at this time of year, according to Tom Kloza, chief oil analyst at the Oil Price Information Service.

If autoworkers strike, cars stop coming off the line. If teachers strike, kids don't go to school. But refineries are different. They are like giant pressure cookers, and once they are up and running they don't need all that much elbow grease to keep oil flowing in and fuels coming out.

FULL story at link. Video: https://social.newsinc.com/media/json/69017/28532557/singleVideoOG.html?type=VideoPlayer%2FSingle&widgetId=2&trackingGroup=69017&videoId=28532557#.VOP8wvdBmrs.twitter

[mpcamb]

3. Gawd, doncha just love it when the magic hand of the marketplace responds so appropriately to

supply and demand.

(Sarcasm icon, please.)

[android fan]

4. I just drove by our usual cheapest gas station

and saw it was $2.02 - I said WTF?

They jacked up 40 cents for no reasos.

[8 track mind]

6. My Dad has a saying from the oil field

It's either feast or famine.I feel sorry for the oil field workers.

[asiliveandbreathe]

8. AZ at $2.17 Tuesday

That is an increase from last week of $.30 - for those who are paying attention..blatant manipulation of gas prices for nothing more than greed...