Crude Plummets
Nov 6th, 2008 | By Doug Casey | Category: Financial NewsIn the energy market Wednesday, oil plunged, with crude for December delivery dropping back through the $70 mark to close at $65.30/barrel, down $5.23. December reformulated gasoline fell 10.8 cents, to $1.4244/gallon.
“The election is over, and with it election fatigue, and the uncertainty every election brings,” said Anthony Sabino, of St. John’s University.
“Now, the inexorable pull of a recessionary economy, tight credit, lack of consumer spending, and increased conservation (and alternative fuels) will continue to pressure oil prices down, down, down,” Sabino wrote.
The Energy Information Administration’s weekly petroleum inventory report found few changes. After climbing 22 million barrels in six weeks, crude stocks were unchanged. But gasoline supplies moved higher, adding 1.1 million barrels.
Distillate inventories rose 1.2 million barrels, which refineries were operating at 85.3% of capacity, unchanged from the previous week.
Total demand for petroleum products over the past four weeks averaged almost 19.1 million barrels per day, down 6.7% from the same period a year ago, the EIA said. Motor gasoline demand averaged 9 million barrels per day, down 2.3% year over year.
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