Oil Declines for a Fifth Day After Al-Naimi Says Prices Too High
Source: San Francisco Gate
May 8 (Bloomberg) -- Oil fell for a fifth day after Saudi Arabia's Oil Minister Ali al-Naimi said prices are too high and a survey signaled that inventories rose to the most in more than 21 years in the U.S., the world's biggest crude consumer.
West Texas Intermediate futures in New York dropped as much as 1.3 percent after closing at a three-month low yesterday. Crude prices are "still a little bit high," al-Naimi said in Tokyo today. U.S. stockpiles climbed 1.9 million barrels to 377.8 million last week, according to a Bloomberg News survey before tomorrow's Energy Department report. Crude's 14-day relative strength index slipped, suggesting that further declines may not be sustained.
"We've seen a fairly significant inventory build-up," Ric Spooner, a chief market analyst at CMC Markets in Sydney, said in a telephone interview today. "The recent trend of the market is obviously down and at this stage, from a technical point of view, looks to be remaining in a short-term downtrend."
Crude for June delivery fell as much as $1.23 to $96.71 a barrel in electronic trading on the New York Mercantile Exchange and pared some losses to trade at $97.38 as of 1:01 p.m. London time. The contract slid 55 cents, or 0.6 percent, to $97.94 yesterday, the lowest close since Feb. 6. Prices are down 1.5 percent this year.
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Amonester
(11,541 posts)F*ck the petrol kings.
(Here's to hoping this is real!)
okieinpain
(9,397 posts)into better energy conservation polices. high speed rail, solar panels, better fuel efficient cars, better mass transit. but oh no let somebody tell americans they can't have their v8 suv's.
FailureToCommunicate
(14,020 posts)Though I agree with your comment.
Arctic Dave
(13,812 posts)They are not slowing production but this article is interesting.
http://www.alaskadispatch.com/article/all-5-tankers-return-valdez-some-oil-aboard
thelordofhell
(4,569 posts)The other shoe will drop when oil isn't 150 a barrel like these assholes predicted just 3 months ago
demosincebirth
(12,541 posts)Archae
(46,342 posts)I hope the price speculators are losing their ass.
demosincebirth
(12,541 posts)xtraxritical
(3,576 posts)cstanleytech
(26,317 posts)earthside
(6,960 posts)Who cares what Saudi Arabia's Oil Minister Ali al-Naimi says?
The truth is that the recession in Europe and the slow down in Asia and in the U.S. is why oil is falling.
The likelihood of less demand because of slower economic activity will naturally bring down the price.
It is the peak oil economic roller coaster ...
NickB79
(19,258 posts)People believe what they want to believe, and the idea of Peak Oil infringes upon those beliefs.
may3rd
(593 posts)economic activity is supposed to rebound with the abundance of unused oil stocks.So,
we wait and see by summers end