Well not spooky exactly, maybe unnerving is a better word. Sometimes I wonder why it is that so much of the world's oil is in countries controlled by autocratic cry babies and crazy men but then again if they did not have all that oil maybe they would not attract so many crazy men in the first place. It seems the oil has given them a power and importance they would never otherwise achieve. I suppose this is what the experts mean by "strategic".
According to this article oil stocks are up and gas reserves are down:
Crude for May delivery was down 52 cents at $68.10 per barrel on the New York Mercantile Exchange. In London, May Brent crude was down 47 cents at $69.39 per barrel.
NYMEX wholesale gasoline for May fell 2.13 cents to $2.0698 per gallon, with May heating oil down 1.86 cents at $1.956 per gallon.
"We're being bounced around as robust crude supplies take the cream off a market driven up by geopolitical concerns," said Justin Smirk, senior economist at Westpac in Sydney.
The U.S. Energy Information Administration said Wednesday that domestic crude in commercial storage increased by a larger-than-expected 3.2 million barrels to 346 million barrels last week, the highest since May 1998.
But continued refinery maintenance work caused gasoline stocks to fall by 3.9 million barrels to 207.9 million barrels, the lowest since Dec. 30. Distillate stocks, which include heating oil and diesel fuel, slid by 4.2 million barrels to 117.4 million barrels, the lowest since July 1, 2005.
But with forward contracts for crude delivery later in the year trading near records above $71, the market remained underpinned by the nuclear dispute between the West and Iran and by worries about the adequacy of U.S. gasoline stocks before the summer driving season as refiners switch from additive MTBE to ethanol.
In a small town about 20 miles from me a new plant is going up, its purpose will be turning coal into gas. Up by Colverdale In a new plant is being built that will produce bio fuel. The problem is the first plant won't be online for about 6 more years and the other plant will take at least two more years to complete.
I wonder sometimes how the United States managed to shift over to war time production so quickly and efficiently in WW2. Today it seems to take years just to get the planning done. We need to drill in ANWR, build new refineries and nuclear plants and the sooner the better..but as for the underlying problem of high priced oil it seems at least some of the blame goes to fear. Fear of what Iran will do, of what Nigeria will do, of what Chavez will do. Needless to say right now Iran is top of the list.
Sometimes I wonder if all these people are crazy like a fox. I wonder if they are really this unstable or if they have figured out that an oil market driven by fear and uncertainty works for them. Well, they should be careful, they might outsmart themselves. Someday the rest of the world might get fed up with being held hostage by a bunch of wackos sitting on top of oil reserves and we might find a way to free ourselves. I know I would love to see some of these folks drown in their oil. Exxon can fend for itself.
2 hours ago