I’ve been sharing the slow reduction of US oil output as oil drilling counts fall during the last few months. Now production has finally fallen below last year’s level. While petroleum fuel inventories remain very high, lower output should tighten them in the months ahead. Even so, I expect oil output to be higher than 2008 on average due to the (more…)
Posts Tagged ‘gas prices’
Weekly US oil output falls below last year’s level
Monday, August 3rd, 2009Oil prices rise, but supply still high
Thursday, June 18th, 2009
Pump prices are about to hit $2.70 per gallon nationwide, and oil has remained above $70 per barrel for several days. Most of the increase has come on expectations of economic recovery – like today’s increase in projection for China’s 2009 growth to 7.2% rather than 6.5% by the World Bank. But even more positive economic news will struggle to increase prices much more unless fuel inventories fall from (more…)
Oil rig count falls, gas price passes $2.30
Saturday, May 16th, 2009
The oil and natural gas rig count fell further last week, falling to just 918 or ~55% below its 2008 peak. This lower drilling activity seems to guarantee lower production within a few weeks that may bring balance to the fuel market. Another development was the price of gasoline passing (more…)
Gas price passing diesel
Wednesday, May 13th, 2009
As I wrote two months back would happen, the price of gasoline is catching up with diesel after a couple years of separation. A year ago, diesel would cost you 60 cents more than gasoline. But looking at the trends in pump prices over the last few days, parity should be reached by (more…)
Oil Passes $50 on Dollar’s Slide
Thursday, March 19th, 2009I said yesterday that oil may pass $50 per barrel, but I didn’t know it would take just one day to occur. That’s what happens when the Fed announces it will print a few hundred billion more to buy debt. The weaker dollar sent dollar-denominated commodity prices up, with oil reaching (more…)
Gasoline and Diesel Move toward Parity Again
Wednesday, March 4th, 2009Remember the old days when gasoline and diesel had roughly the same price? Well, it looks like things are returning toward price parity after last year when diesel often had a premium of ~75 cents. These past few weeks, US diesel production has created ample supply levels and the price has fallen toward the rising price of gasoline. (more…)
Gas prices poised to rise to $2
Wednesday, February 11th, 2009For the last couple of months, average national gasoline prices stopped their skid at ~$1.61 per gallon. But since early January, prices have been climbing back up. In the next few days, prices may hit $2 per gallon thanks to (more…)
US Oil & Gas Inventories Stay Above Average
Thursday, February 5th, 2009As I predicted a couple weeks back, the cold weather cut into our surplus of natural gas and heating petroleum products. But it wasn’t enough to bring them down to average levels. Yesterday’s EIA weekly petroleum report showed crude oil supplies climbing to astronomical heights at (more…)
Thanksgiving travel affordable as gas price falls
Friday, November 21st, 2008
One more thing to be thankful for — affordable transportation. While I bicycle and take mass transit for daily trips related to work and basketball, my wife and I are renting a car to get down to family in North Carolina for Thanksgiving. It’s always a trip we’re excited about — to be with sisters, brothers, parents, and the rest of our wonderful family and friends — and to enjoy their delicious contributions to the annual feast. This year will include another treat, one that helps us weather the recession: lower gas prices. Today, gasoline has fallen to $1.99 per gallon nationwide — less than (more…)
House Climate Progress & Oil Below $50!
Thursday, November 20th, 2008
House Democrats proved that change has arrived in Washington. Today, they transformed the Energy & Commerce Committee from a foot-dragging institution led by Detroit’s Dingell to a climate-friendly progressive catalyst led by California’s Waxman. Dingell was a force for the status quo with close ties to Big 3 Automakers who obstructed fuel efficiency improvements (a big factor in their terrible economic condition of late). But (more…)