It's a SURPRISE I tell you. [View All]

[Joanne98]

Oil tumbles on surprise jump in supply

Crude futures fall nearly $2 a barrel after the government reports that inventories rose more than expected.

NEW YORK (CNNMoney.com) -- Oil prices sank on Wednesday after the government reported a surprise increase in crude inventories last week.

The decline in crude oil prices accelerated as investors continued to fret over slumping demand for energy, particularly gasoline, according to Peter Beutel, an oil analyst at Cameron Hanover.

Light, sweet crude for September delivery fell $1.13 to $118.04 a barrel at 12:43 PM. Shortly before the U.S. Energy Information Administration released its report, oil was up $1.11 at $120.28.

Weekly supply report. Investors look to the U.S. Energy Information Administration's weekly energy report for existing inventory levels as a gauge of energy demand.

"The report gives us an indication on both supply and demand, and a lot of the selloff in the past couple of weeks is on expectation that we will see inventories rebuild and a sluggish demand pattern continue," said Andrew Lebow, an energy analyst at MF Global in New York.

Crude oil inventories climbed by 1.7 million barrels last week. Overall, crude inventories are in the lower half of the average range for this time of year at 296.9 million barrels. Analysts had forecast a loss of 1.2 million barrels of oil, according a survey from Platts, an energy research firm.

Inventories of distillate fuel - used for heating oil and diesel - rose by 2.8 million barrels last week, slightly more than the 2.3 million barrel build in supplies that analysts were predicting. Stockpiles of distillates are near the upper boundary of the average range for this time of year.

http://money.cnn.com/2008/08/06/markets/oil/?postversion=2008080611

CNN is SURPRISED. It's not surprising at all. Remember the FAKE California energy crisis. The one cause by "supply and demand".

When we started to investigate the electricity markets, it started going down BECAUSE, there was never an electricity crisis to begin with. Just good ole Bush and Cheney STEALING MONEY FROM THE CALIFORNIA PEOPLE! With the help of Arnold BTW.

THE PRICE OF OIL IS GOING DOWN BECAUSE IT NEVER WENT UP IN THE FIRST PLACE!

Got it now?