Oil drops IMMEDIATELY after offshore ban EO repeal

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Oil drops IMMEDIATELY after offshore ban EO repeal

Postby Michael Pelletier » Thu Jul 17, 2008 4:11 pm

Bush lifted the executive order banning offshore drilling on Monday, July 14.

This did not end the ban on offshore drilling, as Congress still needs to act, but observe the response of the oil markets:

WTI Cushing, OK Crude Oil closing spot price per barrel:

7/9 - $135.88
7/10 - $141.47
7/11 - $144.96
7/14 - $145.16 - day of EO ban repeal
7/15 - $138.68
7/16 - $134.60
7/17 - $129.29

Oil has dropped $15.87 per barrel, dropping three straight days in a row, since the repeal of the executive order offshore drilling ban without a SINGLE new oil well in production.

People make fortunes studying the market psychology which Obama dismisses as political hokum, but apparently it's yet another thing of which he's unaware.
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Re: Oil drops IMMEDIATELY after offshore ban EO repeal

Postby RD » Fri Jul 18, 2008 11:17 am

Everything I've been reading attributes the sell-off to concerns about falling demand.
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Re: Oil drops IMMEDIATELY after offshore ban EO repeal

Postby Jeannine Stergios » Fri Jul 18, 2008 11:30 am

RD

Just can't give Bush credit for anything can you? You can think what you want but it is NOT coincidence.

I bet your favorite news show is Keith Olbermann.
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Re: Oil drops IMMEDIATELY after offshore ban EO repeal

Postby RD » Fri Jul 18, 2008 11:55 am

Oil prices are up today... IMMEDIATELY after House Republicans blocked legislation aimed at lowering the price of oil. :lol:
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Re: Oil drops IMMEDIATELY after offshore ban EO repeal

Postby Jeannine Stergios » Fri Jul 18, 2008 12:19 pm

Rd

Oil prices are up today... IMMEDIATELY after House Republicans blocked legislation aimed at lowering the price of oil.


Are you that brainwashed?

Oil markets looking for signs of buble burst
By ADAM SCHRECK, AP Business Writer
1 HOUR AGO
NEW YORK - Oil prices edged modestly higher Friday as news of an [b]output cut in Nigeria
helped to halt, at least temporarily, the week's sharp decline in prices. Prices at the pump finally backed away from record highs in the U.S.[/b]

http://finance.comcast.net/www/news.htm ... 012800.xml

How can that be? You said the reason for the price decrease was coincidence and had nothing to do with Bush lifting the moratorium. :shock: :shock: But the price increase is immediately the Republican's fault - Can you be any more brainwashed?

I also noticed you added a smiley face. You are gleeful that the price went up because that'll show those Republicans. HA HA HA
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Re: Oil drops IMMEDIATELY after offshore ban EO repeal

Postby guesswho » Fri Jul 18, 2008 12:31 pm

Great point Jeannine,

One minute the guy says that lifting the EO ban - which indicated an effort to increase oil supplies - had nothing to do with the drop in prices.

Then less than an hour later that same guy gets on here gets and says that the blocked Congression plan - which Democrats believe would increase oil supplies by forcing companies to drill their leases - is why oil prices went up.

LOL.

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Re: Oil drops IMMEDIATELY after offshore ban EO repeal

Postby RBarnes » Fri Jul 18, 2008 1:00 pm

One big reason why companies don't drill their leases is because there is a shortage of drilling equipment. One report I read said that the rigs we have now are already booked up to 5 years in advance.

The legislation that Democrats put forward that would penalize companies who did not drill their lease would not fix the supply of rigs and would only cause harm because companies can't drill when they don't have a rig to drill with.
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Re: Oil drops IMMEDIATELY after offshore ban EO repeal

Postby RD » Fri Jul 18, 2008 1:22 pm

Jeannine Stergios wrote:I also noticed you added a smiley face.

I added the smiley face to show that I was being facetious in my post. I guess it didn't work.
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Re: Oil drops IMMEDIATELY after offshore ban EO repeal

Postby Jeannine Stergios » Fri Jul 18, 2008 1:58 pm

RD

Good excuse. :shock:
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Re: Oil drops IMMEDIATELY after offshore ban EO repeal

Postby Concerned » Fri Jul 18, 2008 5:16 pm

Solve the riddle...

You hear on the evening news that oil prices went up again. You drive to work the very next morning and all the gas prices have been raised.

You hear on the evening news for 3 straight days that oil prices have gone down significantly. You drive to work the next 3 mornings and gas prices have not gone down and in a lot of cases have gone up even more...

Still think the gas companies with the highest revenues and profits in US history are not involved??

Still think this is the fault of the government?
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Re: Oil drops IMMEDIATELY after offshore ban EO repeal

Postby Michael Pelletier » Sun Jul 20, 2008 8:37 am

RD wrote:Oil prices are up today... IMMEDIATELY after House Republicans blocked legislation aimed at lowering the price of oil. :lol:

You should have waited until the market closed, RD - the price ended the day lower, despite trading higher during the day, to extend the price drop to four days.

Concerned wrote:You hear on the evening news for 3 straight days that oil prices have gone down significantly. You drive to work the next 3 mornings and gas prices have not gone down and in a lot of cases have gone up even more...

Let's say you buy 1,000 gallons of gasoline. You pay $3.42 per gallon up front, including all delivery fees, for a total of $3,420 of cash invested.

Since your competitor down the street paid less than you did due to having a different supplier, and has a bigger convenience store than you do, he's charging $4.02 per gallon, so you charge $4.03 per gallon so that your gas station won't be deserted.

So $4.03 per gallon includes 18.4 cents of federal tax, 38 cents of state tax, 1/8 cent for the NH oil pollution control fund, and 1.5 cents per gallon for the underground tank cleanup fund. This means that you end up with $3.44975 per gallon you sell, after taxes.

Subtracting the up-front cash outlay for your supply, this means you're clearing 2.975 cents per gallon in profit, or $29.75 in profit for the entire 1,000 gallon supply. Is this even enough to pay for the electricity for the gas pumps? It's certainly not enough to pay credit card transaction fees.

So let's say you sell 500 gallons before your supplier's price drops to $3.32 per gallon. You still have 500 gallons left for which you paid $50 more for than the current price of wholesale gasoline.

Should you immediately drop your prices and take a $50 bath on the gasoline still in your tanks, completely eliminating what tiny profit you might have eked out? What if the price goes back up before you finish selling it and you can't get the $3.32 price anymore, and you've taken a loss for nothing?

As of Tuesday, however, New York Harbor Reformulated RBOB Regular Gasoline had fallen from 351.02 cents per gallon to 333.7 cents per gallon, and has likewise fallen every day since Monday's executive order offshore ban repeal, settling Friday at 317.09 cents per gallon. So the price of gas is, in fact, falling along with the price of oil.

I don't mind that it's not falling as fast on the gas station sign, if it means that I'll still have a non-bankrupt gas station to fill up at in the long run.

If this pisses you off, you're welcome to run the regulatory and liability obstacle course and install your own underground tank and buy your gasoline thousands of gallons at a time.

Do you know what drove the switch from Classic Gas to MCC Gas and its jam-packed convenience store, and why they're not cutting their gas prices even though AL Prime and Mobil are? The contractor who was replacing their tanks and pumps failed to get a state inspection before pouring the concrete, and the state inspector required that the concrete be removed in order to allow him to inspect the installation. Once this was done, it was a $100,000 body-blow to the business, and who knows if they have or will ever recover from the Massachusetts-based contractor.

I'd love to see the gas stations be permitted to itemize the taxes on the gas receipts, by the way.
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Re: Oil drops IMMEDIATELY after offshore ban EO repeal

Postby RD » Sun Jul 20, 2008 11:00 am

Jeannine Stergios wrote:RD

Good excuse. :shock:

I'll bet Mike P. recognized that my post was in jest...
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Re: Oil drops IMMEDIATELY after offshore ban EO repeal

Postby Wayne » Sun Jul 20, 2008 11:48 am

RD wrote:I added the smiley face to show that I was being facetious in my post. I guess it didn't work.

I had figured it out. ;-)
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Re: Oil drops IMMEDIATELY after offshore ban EO repeal

Postby Michael Pelletier » Wed Jul 30, 2008 6:19 pm

Oil prices have reached a three-month low, September light sweet crude closing down $2.54 to $122.19 on Tuesday, July 29.
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Re: Oil drops IMMEDIATELY after offshore ban EO repeal

Postby Wayne » Wed Jul 30, 2008 6:32 pm

And it's back up almost 5 dollars today...
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