• 5 minutes Oil prices forecast
  • 8 minutes Nuclear Power Can Be Green – But At A Price
  • 11 minutes Projection Of Experts: Oil Prices Expected To Stay Anchored Around $65-70 Through 2023
  • 16 minutes Europe Slipping into Recession?
  • 11 hours *Happy Dance* ... U.S. Shale Oil Slowdown
  • 6 hours Socialists want to exorcise the O&G demon by 2030
  • 3 hours Emissions from wear of brakes and tyres likely to be higher in supposedly clean vehicles, experts warn
  • 4 hours UK, Stay in EU, Says Tusk
  • 1 day Germany: Russia Can Save INF If It Stops Violating The Treaty
  • 2 days Connection Between Climate Rules And German's No-Limit Autobahns? Strange, But It Exists
  • 2 days Conspiracy - Theory versus Reality
  • 5 hours How Is Greenland Dealing With Climate Change?
  • 2 days Chevron to Boost Spend on Quick-Return Projects
  • 1 day Maritime Act of 2020 and pending carbon tax effects
  • 2 days U.S. Treasury Secretary Mnuchin Weighs Lifting Tariffs On China
  • 2 days Regular Gas dropped to $2.21 per gallon today
Alt Text

Canadian Oil Prices Reach 12-Month High

Canadian crude prices hit their…

Alt Text

Oil Set For First Annual Drop In Three Years

Despite a slight recovery in…

Alt Text

Oil Prices Rise As Saudi Oil Exports Plummet

Falling Saudi oil exports have…

Darrell Delamaide

Darrell Delamaide

Darrell Delamaide is a writer, editor and journalist with more than 30 years' experience. He is the author of three books and has written for…

More Info

Trending Discussions

High Inventories Keep Crude Oil Prices from Advancing on Week

Oil Market Summary for 04/05/2010 to 04/09/2010.

Crude oil prices ended the week virtually unchanged from a week ago as optimism about demand warred with trepidation about historically high inventories in both crude oil and gasoline.

The benchmark West Texas Intermediate contract settled at $84.92 a barrel on Friday, only 5 cents ahead of the previous week’s Thursday close after surging above $87 a barrel early in the week and then declining for three straight sessions.

Bears noted that oil seemed unable to stay above $87 a barrel level, while bulls said that oil had tested the $84 level going down and found resistance.

The contango for oil increased during the week, suggesting continued downward pressure on short-term prices. Contango is when further-dated contracts have higher prices than near contracts. Contango widened to about 60 cents from 40 cents as near-term prices fell at the end of the week.

Analysts also noted that the gasoline crack spread – the difference between a barrel of crude and a barrel of gasoline – declined over the week, indicating soft demand for gasoline.

Crude oil inventories rose for the 11th straight week and gasoline inventories remained high for the season. Refineries increased capacity utilization to nearly 85%, giving rise to concerns that gasoline stocks would remain high if seasonal demand failed to materialize.

Crude oil has gained more than 70% over the past year, outstripping the fundamentals, on speculation that economic recovery would result in an increase in demand.

Energy prices are approaching a crossroads, analysts said. Either demand will in fact start reducing inventories and prices will head toward $100 a barrel, or inventories will remain at above-average levels and prices could head back in the direction of $75 a barrel.

Continued uncertainty about Greece’s fiscal crisis also dampened oil prices. Fitch downgraded Greek debt to BBB-, the lowest investment-grade rating, increasing the country’s borrowing costs even as it frantically tries to raise money in international capital markets. A Greek default and its knock-on effects in Europe could severely impact economic recovery and reduce demand for oil.

By. Darrell Delamaide




Back to homepage

Trending Discussions


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News