Oil Hovers Around 8-Month Lows Near $80

[MyLittlePony 340]

Oil prices hovered around 8-month lows near $80 a barrel Thursday after the U.S. central bank balked at implementing vigorous stimulus measures to boost waning economic growth and U.S. crude stockpiles rose unexpectedly.

By early afternoon in Europe, benchmark oil for August delivery was down 92 cents to $80.53 a barrel in electronic trading on the New York Mercantile Exchange.

Earlier in the session, the contract dropped to $79.92, the lowest since October. On Wednesday, it fell $2.90 to settle at $81.45.

In London, Brent crude for August delivery was down $1.13 at $91.56 per barrel on the ICE Futures exchange.

The Federal Reserve on Wednesday extended an interest-rate reduction program known as Operation Twist, pledging to sell $267 billion of short-term Treasury bonds and buy longer-term Treasurys through December. However, traders had been hoping for a more aggressive stimulus package known as quantitative easing.

"Bears are on the cusp of smashing through the $80 level," energy trader and consultant The Schork Group said in a report. Schork said the benchmark U.S. crude could fall to $74 and Brent to $82.

A surprising jump in U.S. crude supplies also weighed on crude prices. The Energy Information Administration said oil supplies grew by 2.9 million barrels last week while analysts surveyed by Platts, the energy information arm of McGraw-Hill Cos., had predicted a decrease of 600,000 barrels.

"The inventory data ... was sobering," said analysts at Commerzbank in Frankfurt, noting that U.S. crude oil stocks had reached their highest level in nearly 22 years. "Given that refinery utilization is close to a 5-year high, one would really have expected to see an inventory reduction. That this was not the case was due to significantly higher crude oil imports and increased U.S. oil production."

Crude has plunged about 25 percent from $106 early last month amid signs of slowing economic growth in the U.S., Europe and China. However, some analysts say investors are too pessimistic about global crude demand prospects.

"Oil prices at current levels are too low and a more a reflection of risk aversion rather than any significant unwinding in demand," National Australia Bank said in a report.

In other energy trading, heating oil was down 0.71 cent at $2.5775 per gallon while gasoline futures fell 2.59 cents at $2.4814 per gallon. Natural gas gained 5.1 cents at $2.568 per 1,000 cubic feet.

[unlockingsky 94]

opec should have just kept it at $150 and let the world economy collapse since they hate america so much.

looks like they want a inflow of money from the americans now... lol

Edited June 21, 2012 by unlockingsky

[Teddy B 17,252]

opec should have just kept it at $150 and let the world economy collapse since they hate america so much.

looks like they want a inflow of money from the americans now... lol

Suicide is not generally the best way to approach things.

[unlockingsky 94]

Suicide is not generally the best way to approach things.

this just proves that opec has nothing to do with religion, but mere hiding the fact as using religious differences to squeeze more money.

[slim 1,525]

Regardless of religion... greed trumps god.

[JohnR! 5,495]

1340290188[/url]' post='5469534']

opec should have just kept it at $150 and let the world economy collapse since they hate america so much.

looks like they want a inflow of money from the americans now... lol

OPEC does not hate America. Some people do.

1340291928[/url]' post='5469642']

Regardless of religion... greed trumps god.

Money trumps the entire Olympus!

[Bad_Daddy 2,209]

When the price of oil starts dropping it's a sign of the economy going down hill.

[JohnR! 5,495]

When the price of oil starts dropping it's a sign of the economy going down hill.

or it is an election year....

[Mr. Big Dog 10,747]

When the price of oil starts dropping it's a sign of the economy going down hill.

Well, Republicans are promising low gas prices which require low oil prices. There's your indication of what they want to do to the economy - tank it so we can all have cheap gas. No jobs but cheap gas.

[rocks 494]

Well, Republicans are promising low gas prices which require low oil prices. There's your indication of what they want to do to the economy - tank it so we can all have cheap gas. No jobs but cheap gas.

Whenever I have said that gas prices are low for this time of year, all the republicans I know have disagreed.

Some people are never satisfied.

Edited June 22, 2012 by rocks

[james&olya 1,121]

Regardless of religion... greed trumps god.

Greed IS God!

[Mr. Big Dog 10,747]

Greed IS God!

You forgot an "o" there. The word is greed is good.

Edited June 22, 2012 by Mr. Big Dog

[Ban Hammer 13,345]

You forgot an "o" there. The word is greed id good.

as in wizard of id?

[Mr. Big Dog 10,747]

as in wizard of id?

typo

[james&olya 1,121]

You forgot an "o" there. The word is greed is good.

No typo!