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AP: ‘Price Of Crude Oil Dips As US Supplies Rise’

From a dejected Associated Press:

Price of crude oil dips as US supplies rise

By PABLO GORONDI | October 9, 2013

The price of oil fell the most in three weeks after a report from the Energy Department showed a big increase in supplies.

How many years have we been told this could never happen? That US supplies could never affect the world price of crude oil? Because ‘oil is fungible.’

But, lo and behold, US supplies are affecting the price of oil. Just like we and people like Sarah Palin (‘Drill here, drill now!’) said they would.

The Energy Department said Wednesday that supplies rose by 6.81 million barrels last week. The jump comes at a time of year when demand from oil refineries is seasonally weak, said Stephen Schork, an independent industry analyst…

Schork estimates that oil supplies are at their highest since the 1930s.

And yet we have been told for years that the world is running out of oil. Also notice how fracking is never mentioned once in this article.

Benchmark crude for November delivery fell $1.88 to $101.61 a barrel on the New York Mercantile Exchange.

Signs of weakening global demand are also weighing on prices…

Yes, suddenly the whole world has decided it doesn’t need as much oil as before.

The IMF also warned that the U.S. would harm the world economy if it fails to raise its borrowing limit. If Congress doesn’t raise the limit on the amount of money the country can borrow by Oct. 17, the nation could face an unprecedented default on its debts.

Oil prices have bounced around between $101 and $104 a barrel after the U.S. government was forced to partially halt operations last week. The shutdown occurred when Congress failed to pass a bill on short-term funding for the nation past the end of the government’s fiscal year on Sept. 30…

Yes, the government shutdown is surely what is driving the price of oil down. When only a fraction of a fraction of the government workforce isn’t going into work.

Brent, the benchmark for international crudes, fell $1.10 to $109.06 a barrel on the ICE Futures exchange in London.

In other energy futures trading on Nymex:

— Wholesale gasoline fell 1 cent to $2.62 per gallon.

— Natural gas lost 4 cents to $3.68 per 1,000 cubic feet.

— Heating oil fell 2 cents to $3.02 per gallon.

Could fracking have anything to do with these lower prices? Also notice how the tone of this article makes it sound as if this is bad news. Which, we suppose for the AP, it is.

This article was posted by Steve on Thursday, October 10th, 2013. Comments are currently closed.

3 Responses to “AP: ‘Price Of Crude Oil Dips As US Supplies Rise’”

  1. untrainable says:

    Why is there a paragraph in the middle of an article on lower oil prices about the IMF warning us that we’d better raise our debt limit? What does the debt limit have to do with the price of oil in Texas?

    The AP writes an article in a feeble attempt to show that US oil is bad, in the face of facts that they have been ignoring for more than a decade that show just the opposite. So, realizing that the article isn’t going to achieve it’s goal, we drag the debt limit into the discussion to prove that America is evil because evil republican extreeeeeemists (conservatives) don’t want to raise our debt limit. (and as Obama says, raising the debt limit doesn’t add anything to the debt. What planet is this guy from again???)

    They’re grasping at straws (colorful bendy straws) and coming away with a handful of nothing.

  2. GetBackJack says:

    (colorful bendy straws)

    Thank you. I needed a chuckle after THE DAY’S GD NEWS

  3. Astravogel says:

    What’s the price of Snake Oil from the Democrats? Your
    freedom, that’s what.

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