WONDER WHERE THE "$40-50 barrell" SHILLS ARE NOW? Anyone still want to bet against OPEC??

http://dailynews.yahoo.com/h/nm/20001220/bs/markets_oil_dc_357.html

Wednesday December 20 3:51 PM ET
Oil Sinks to Eight-Month Low

By Richard Mably

LONDON (Reuters) - Oil prices slumped by over $2 a barrel to end at new eight-month lows on Wednesday as another bout of nerves among dealers surveying a build in global inventories sent prices plummeting.

London Brent futures for February slid $2.10 to $22.90 a barrel after losing $1.24 on Tuesday. February U.S. light crude was down $2.29 at $25.67 a barrel.

Oil's slump has knocked $12 from the value of a barrel since mid-October's 10-year peak of $35 for Brent. Speculators have fled the market.

``The speed of the loss of the last dollar ... shows how vulnerable the market remains to the downside,'' said Lawrence Eagles of brokers GNI.

Another contraseasonal build in U.S. crude inventories was cited by dealers as the reason for the latest slide. A weekly American Petroleum Institute report showed crude stocks for the world's biggest consumer in the week to December 15 up 2.4 million barrels to 289 million.

Crude stocks are normally drawn down at this time of year but four OPEC (news - web sites) supply increases this year mean inventories are rebuilding quickly from the summer's record lows.

This week's U.S. crude build has narrowed the gap versus last year to a small 5.8 million barrel deficit compared to a 30-million barrel shortfall less than two months ago.

U.S. distillate stocks, which include heating oil, slipped 890,000 barrels to 116.5 million and are 13.6 million lower than this time last year.

Dealers were also worried about a huge increase in U.S. imports of petroleum products, up 1.3 million barrels a day on the week to 3.05 million barrels.

European, Asian Inventories Back To Normal

European and Asian inventories are also close to balance versus last year with mild winter weather in Europe helping stocks in the region grow faster than expected.

Oil's latest fall comes despite bullish factors which some think could arrest the decline.

OPEC ministers, who meet in January, are talking about the possibility of curbing supplies by about one million barrels a day.

They fear a further downturn in the second quarter when demand slows and some want to cut production even if prices for a basket of OPEC crudes have not fallen below $22, the bottom end of the cartel's preferred range.

The basket was priced at $23.87 a barrel on Tuesday.

Iraq also may continue to lend some support to prices.

Baghdad has resurrected its request for a surcharge payment on United Nations (news - web sites) oil sales, leading contract holders to fear Iraqi exports could dry up again by the end of December.

Iraq had suspended sales under the U.N.'s oil-for-food exchange for 12 days at the beginning of this month when customers refused to pay the surcharge.

Exports from one of two approved terminals, the Gulf port Mina al-Bakr, resumed a week ago after Baghdad waived the fee for those customers who had incurred huge tanker demurrage costs while queuing at the terminal.

But there are still no deliveries from Iraq's other outlet, Turkey's Mediterranean port of Ceyhan -- leaving sales more than a million barrels a day lower than normal.

And in the United States forecasts are for below-normal temperatures over the next two weeks, stoking demand for heating fuels.

-- Anonymous, December 20, 2000

Answers

Charles, Thanks for pointing this out.

The election has been bought and paid for. There is no longr a need for the high prices which financed the major contributors to the republican and Bush elections.

-- Anonymous, December 20, 2000

Sweetness, you have been reading too much of the dreck on the web and you can't believe that. For one thing, see how much Oil gave to alBoring and his little friends in the Donkey Club or more properly, the Jackasses Party.

NONE OF THESE CLOWNS "MATTER" to most big companies anyway. What they pay for is a "fair hearing" just in case they ever need something or need to "block" something.

Most large Corps. cover their bets and give to both sides especially in "key races". The funny part is the politicians take the bread and sell them out ANYWAY if their own "next" race would be lost by the wrong vote.

The total for all the elections both sides was estimated to the something like $1 bill. OR a pittance compared to the amount the Navy plans to spend to upgrade its Network.

-- Anonymous, December 20, 2000

Now lets get down to the nitty-gritty. Unleaded regular went under 1.20/gal last week here. It is still falling.

Best Wishes,,,,

Z

-- Anonymous, December 20, 2000