Oil falls below 90 bucks wahoooooooooooo
Oil falls below $90 on surprise supply increase
Crude stockpiles grew by 4.3 million barrels last week after shrinking for eight straight weeks.
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NEW YORK (CNNMoney.com) -- Oil prices fell sharply Wednesday after the government reported a surprise increase in crude supplies.
U.S. light crude for February delivery fell $2.20 to $89.62 a barrel on the New York Mercantile Exchange. Oil had traded down $1.21 prior to the report's release.
In its weekly inventory report, the U.S. Energy Information Administration said crude stocks grew by 4.3 million barrels last week, after posting declines for eight weeks in a row. Analysts were looking for a drop of 300,000 barrels according to a Dow Jones poll.
Distillates, used to make heating oil and diesel fuel, rose by 1.1 million barrels while gasoline supplies rose by 2.2 million barrels. Analysts were looking for an increase of 1 million barrels in distillates supplies and a rise of 2.4 million barrels in gasoline stockpiles.
Refinery activity fell by 4.2 percent last week to 87.1 percent of capacity. Analysts had expected a decline of 0.7 percentage point to 90.6 percent of capacity.
Crude traded above $100 a barrel earlier this month, fueling fears that the U.S. economy could topple into recession.
President Bush urged OPEC member nations on Tuesday to increase crude supply, arguing that high oil prices could further damage the U.S. economy.
Earlier Wednesday, the Secretary-General of OPEC, Abdalla Salem al-Badri, said the cartel "would not hesitate" to boost crude supplies if market conditions justify an increase, according to the Associated Press.
OPEC could decide to boost output when the group meets on Feb. 1 in Vienna, Austria.
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Crude stockpiles grew by 4.3 million barrels last week after shrinking for eight straight weeks.
Special Reportfull coverage
Saudi oil minister rebuffs White House
Oil falls on recession speculation
Oil falls below $90 on surprise supply increase
Oil ends volatile day below $96
NEW YORK (CNNMoney.com) -- Oil prices fell sharply Wednesday after the government reported a surprise increase in crude supplies.
U.S. light crude for February delivery fell $2.20 to $89.62 a barrel on the New York Mercantile Exchange. Oil had traded down $1.21 prior to the report's release.
In its weekly inventory report, the U.S. Energy Information Administration said crude stocks grew by 4.3 million barrels last week, after posting declines for eight weeks in a row. Analysts were looking for a drop of 300,000 barrels according to a Dow Jones poll.
Distillates, used to make heating oil and diesel fuel, rose by 1.1 million barrels while gasoline supplies rose by 2.2 million barrels. Analysts were looking for an increase of 1 million barrels in distillates supplies and a rise of 2.4 million barrels in gasoline stockpiles.
Refinery activity fell by 4.2 percent last week to 87.1 percent of capacity. Analysts had expected a decline of 0.7 percentage point to 90.6 percent of capacity.
Crude traded above $100 a barrel earlier this month, fueling fears that the U.S. economy could topple into recession.
President Bush urged OPEC member nations on Tuesday to increase crude supply, arguing that high oil prices could further damage the U.S. economy.
Earlier Wednesday, the Secretary-General of OPEC, Abdalla Salem al-Badri, said the cartel "would not hesitate" to boost crude supplies if market conditions justify an increase, according to the Associated Press.
OPEC could decide to boost output when the group meets on Feb. 1 in Vienna, Austria.
President Bush: Pleading for mercy in the desert
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When will it get back to $16 dollars a barrel is what I want to know? A dollar a gallon was nice. 0 -
It only takes a rumor of a shortage somewhere to get the price of gas to jump .20....It will take a month before we see any change at the pump even when the cost of oil drops. 0 -
It might travel in a downward manner for another couple of months, but surely it will begin to rise by spring in preparation for yet higher and higher prices at the pump. 0 -
I guess thats why the local Flying J gas dropped from 3.09 to 3.01 today. 0 -
Give it time I am sure it will explode back up to 100+ in the near future. I have noticed that wholesale gas prices have come down nearly 35-40 cents, yet pump prices have only fallen 5-10 cents. But as usual the government says there is no gouging or price fixing. I think not. 0
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