Oil rises on falling U.S. gasoline supplies - US Gasoline Exports Hit 60-Year Highs

http://www.suntimes.com/business/currency/1119554,oilprices082108.article

Oil rises on falling U.S. gasoline supplies

August 21, 2008

BY ASSOCIATED PRESS

Oil prices rose Thursday above $116 a barrel as investors considered a fall in U.S. gasoline inventories and a possible output tightening by OPEC at its next meeting in September.

By midday in Europe, light, sweet crude for October delivery was up $1.37 at $116.93 a barrel in electronic trading on the New York Mercantile Exchange. The contract rose $1.01 overnight to settle at $115.56 a barrel.

The September contract expired Wednesday after rising 45 cents to $114.98 a barrel.

http://www.cattlenetwork.com/Content.asp?contentid=241246

7/31/2008 3:04:00 PM

As US Gasoline Demand Drops, Exports Hit 60-Year Highs

NEW YORK (Dow Jones)--As high oil prices slashed refiner margins and record prices at the pump have trimmed demand, U.S. gasoline exports have risen in recent months to their highest levels since 1945.

The volumes aren't large by any measure, accounting for less than 1% of stunted gasoline demand growth in the world's largest oil consumer.

But the phenomenon underscores the evolving dynamics of the global oil market, where demand growth in China and the developing world is climbing while declining in industrialized economies, and refiners struggle with crude oil prices that far outstretch even the record high retail prices for gasoline. Government fuel subsidies in many countries blunt the impact of the soaring prices that have crimped U.S. demand.

The U.S. has relied on some gasoline imports to meet demand for gasoline, the most widely used petroleum product, since the 1960s. Even with China's soaring demand and diminished U.S. demand, American motorists burn more gasoline each day than China, the world's second-biggest oil consumer, uses daily in all petroleum products.

Cross-border exports to Canada and Mexico is a regular function of the U.S. market, along with small volumes of fuel shipped to central America and Caribbean countries.

and the current pricing has become disengaged from supply and demand by the speculators.

prices dropped massively on Friday as Nymex Crude dropped $6.59/bbl (5.44%) and Nymex Gasoline dropped $.1766/gal (5.80%)! Swings like that are not supply and demand driven...people are playing...with monopoly money.

sP

OnEdit : missed a dollar-sign