WASHINGTON - Oil prices fell by more than $1 a barrel on Wednesday after new government data showed rising U.S. supplies of diesel and heating oil and only a smaller-than-expected decline in crude oil inventories.
Somehow, it still is all bushhitlerhalbertonSUV's Fault.
Earlier in the day, crude futures prices moved higher on concerns about production disruptions as Hurricane Emily slammed into Mexico's northeastern coastline and after a U.S. warning of possible terrorist attacks in Saudi Arabia.
More proof that the hard earned money I put into my tank is determined by someone else's daily panic attack
Light sweet crude for August delivery fell $1.11 to $56.35 a barrel in afternoon trade on the New York Mercantile Exchange. September futures, which become the front-month contract beginning Thursday, traded 79 cents lower at $57.90 a barrel.
Heating oil futures fell by 3.71 cents to $1.593 a gallon while gasoline dropped by less than a penny to $1.67 a gallon.
In its weekly supply snapshot, the Department of Energy said stocks of distillate fuel, which include heating oil, diesel and jet fuel, grew by 2.3 million barrels to 122.7 million barrels, or 5 percent above year ago levels.
'cause it's all about the oil, baby. Uh-huh, uh-huh
The nation's inventory of crude oil slipped by 900,000 barrels to 320.1 million barrels, or 7 percent above year ago levels, the agency said. Analysts said traders were expecting a decline of at least twice that size.
More proof that analysts really don't know anything and just make shit up as they go.
"It really was a bearish surprise to the market," said Phil Flynn, an analyst at Alaron Trading Corp. in Chicago.
Flynn said that while the damage to oil production from Hurricane Emily appears to be temporary, the market will remain on edge until a clearer picture develops — and any time a big storm moves through the Gulf of Mexico. While he believes oil prices could theoretically head down toward $50 a barrel this summer, assuming no major supply snags, he maintains that traders will become jittery as the winter heating season approaches.
The sky is falling! The sky is falling!
Flynn gave credit to the refining industry for cranking up production of distillate fuel at a time when it must also meet the peak demand for gasoline. "They've really built up supply in a short period of time," he said.
It is called capitalism and good buisness sense, dumbass...
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