Oil price over $147 for the first time-now above $80

[gtalum]

I don't expect OPEC to allow the price to continue going down.

I don't think OPEC has any control at this point. They keep cutting production and the oil price falls anyway. Remember, they need cash too.

[Cryomaniac]

I don't expect OPEC to allow the price to continue going down.

I don't think OPEC has any control at this point. They keep cutting production and the oil price falls anyway. Remember, they need cash too.

Exactly, they can't keep cutting production.

[vbhoutex]

So much for my "the price has settled between 1.549 and 1.609". I bought gas for 1.469 today. It was 1.449 across the street but it was too much hassle traffic wise to make it worth it to try to get there.

[MGC]

I paid $1.429 today at Wal Mart in Gulfport....MGC

[JonathanBelles]

The poor BP people. There was gas for 1.64 today on one corner, yet the BP people were stuck at 1.85. How that works I dont know, but there werent any people at the BP station.

[Derek Ortt]

The poor BP people. There was gas for 1.64 today on one corner, yet the BP people were stuck at 1.85. How that works I dont know, but there werent any people at the BP station.

rip off station. There is a similar station near my place that runs about 25-40 cents above every other station. For some reason, people still go there (if I go there it is for about 5 in gas, just to get me to another station)

[senorpepr]

$1.239/gal back home now.

It's $2.020 on base until Saturday. Off base is about $5.372/gal.

[HURAKAN]

Energy department lowers price projections for diesel, oil in 2009

The U.S. Energy Information Administration is projecting that both diesel fuel and crude oil prices will drop in 2009, citing the “current global economic slowdown” as the reason for the price decreases.

According to the EIA’s Short-Term Energy Outlook, the national average price for diesel is expected to drop to $2.47 per gallon, down $1.33 from the 2008 average. Crude oil is projected to fall to $51 per barrel in 2009, down from approximately $100 per barrel in 2008.

“The increasing likelihood of a prolonged global economic downturn continues to dominate market perceptions, putting downward pressure on oil prices,” according to the report.

The rapid decline in world petroleum demand has driven down the monthly average price of West Texas Intermediate (WTI) crude oil by more than half since July 2008.

OPEC is scheduled to meet again on Dec. 17 to “evaluate the effectiveness of its earlier decision to cut production targets by 1.5 million barrels per day and to weigh the need for additional production cuts.”

[CajunMama]

The poor BP people. There was gas for 1.64 today on one corner, yet the BP people were stuck at 1.85. How that works I dont know, but there werent any people at the BP station.

I don't know if it's like this where you are but here in louisiana stations are not supposed to change the price until the underground storage tanks are filled.

[JonathanBelles]

The poor BP people. There was gas for 1.64 today on one corner, yet the BP people were stuck at 1.85. How that works I dont know, but there werent any people at the BP station.

I don't know if it's like this where you are but here in louisiana stations are not supposed to change the price until the underground storage tanks are filled.

Yea, I think that may have been part of it. I'm going to go by there later today to see if it changed any.

[HURAKAN]

Oil falls despite Opec's threats

Oil prices briefly topped $50 a barrel on Monday before dropping almost $5 a barrel, despite threats of production cuts from oil producers' cartel Opec.

Opec is meeting in Oran in Algeria, having delayed a production decision at an informal meeting earlier this month.

Some members are keen to cut production by two million barrels per day to boost prices, which have slumped from a peak of $147 a barrel in July.

US light, sweet crude for January delivery fell $1.18 to trade at $45.10.

The price had earlier peaked at $50.05 a barrel.

In London, Brent crude for January fell 60 cents to $45.81.

Opec's biggest previous cut in production was in April 1999 when it cut production by 1,716,000 barrels per day (bpd).

'Sizeable reduction'

Prices are being depressed by falling demand for oil as the world's major economies slow and some of them go into recession.

There were further signs of economic weakness on Monday, with the news that Toyota would indefinitely delay a new assembly plant in Mississippi as a result of the US car industry downturn.

Opec cut 1.5 million bpd at its last formal meeting in Vienna, Austria, in October, but prices continued falling regardless, and hit a four-year low of $40.50 a barrel on 5 December.

"We have to act - we see a very sizeable reduction," Opec secretary-general Abdullah al-Badri told reporters.

Two million barrels represents about 5% of Opec production.

"Everybody is supporting a cut - I don't have any doubt about it," said Opec president Chakib Khelil.

Mr Khelil also confirmed that Opec's biggest exporter, Saudi Arabia, had already cut its own production by 8% in anticipation of the cartel's decision.
Story from BBC NEWS:
http://news.bbc.co.uk/go/pr/fr/-/1/hi/b ... 784158.stm

[somethingfunny]

Sherman/Denison has plateaued at $1.43/gal. DFW's prices are now plummeting past us....saw $1.35 in McKinney of all places and $1.41s all around Collin County today.

[Weatherfreak14]

The poor BP people. There was gas for 1.64 today on one corner, yet the BP people were stuck at 1.85. How that works I dont know, but there werent any people at the BP station.

rip off station. There is a similar station near my place that runs about 25-40 cents above every other station. For some reason, people still go there (if I go there it is for about 5 in gas, just to get me to another station)

BP hear has been running 20 cents cheaper here... its 1.49 while other areas are 1.74.

[JonathanBelles]

Prices seem to have somewhat leveled off between $1.58 and $1.61

[angelwing]

Yesterday gas in NJ was $1.48 on base, today it's $1.57! Looks like it might be starting to rise

[HURAKAN]

Opec agrees record oil output cut

The oil producers' cartel Opec has agreed to make a record cut in output, slashing 2.2 million barrels per day (bpd) from its current supply.

Opec has made two other cuts since September, meaning it has cut a total of 4.2 million bpd in four months.

Despite the record cut, oil prices continued to fall as US data provided fresh evidence of falling demand.

US light, sweet crude for January fell as low as $39.94 a barrel, its first time been below $40 since July 2004.

The falls were blamed on US inventories figures, which showed that demand for petrol in the four weeks to 12 December was down 2.7% from the same period last year.

The price later recovered slightly to trade on the New York Mercantile Exchange at $40.31, which was down $3.29 from Tuesday's close.

Demand risks

Opec said that it hoped the record cut would boost prices but that it had no formal price target.

The cut means that the target for production for the 12 member states is now 24.845 million bpd.

The cut is effective from 1 January, but the big question with Opec production cuts is always whether the member states will actually make the cuts they have agreed to.

"Given the still-substantial risks to demand and ongoing scepticism on Opec compliance, it could take some time before prices recover materially above $50 to $55 per barrel," said Gordon Gray from Collins Stewart.

Oil prices fell following the agreement, because weekly US inventories figures provided further evidence that motorists were cutting back on their consumption.

'Bigger problems'

There was some doubt among analysts about whether the cut would be enough to push prices higher, even if members did comply with it.

"Historically Opec has had to remove around five million barrels from the market in previous slumps, and they're facing bigger problems now than they have done before," said Michael Lewis, head of commodity research at Deutsche Bank.

Oil prices have fallen by more than $100 a barrel from the peak above $147 that they reached in July.

Prices have been falling amid concern about how much less oil will be used by countries experiencing recessions.

Falling consumption means that industrialised nations currently have stockpiles of oil equivalent to 57 days of consumption - supplies that would typically be about 52 days at this time of year.

How will the Opec decision affect you? Please send your comment using the form below:

Story from BBC NEWS:
http://news.bbc.co.uk/go/pr/fr/-/1/hi/b ... 786456.stm

[CajunMama]

Yesterday gas in NJ was $1.48 on base, today it's $1.57! Looks like it might be starting to rise

Just in time for holiday traveling? /sarcasm off

[Stephanie]

Yesterday gas in NJ was $1.48 on base, today it's $1.57! Looks like it might be starting to rise

Just in time for holiday traveling? /sarcasm off

Probably...

[angelwing]

It's up in PA too, was $1.67-1.75, now I see lowest $1.85...here we go

[Derek Ortt]

you do know that the price of oil tanked yesterday after Opec's cuts?