I just found this. Oil is droping but gas is still going up. WHY?
Oil prices continue to slide
By Madlen Read
The Associated Press
NEW YORK -- Crude oil prices dropped for the fifth day in a row Thursday to two-month lows as traders exited what they say is a market trending lower on weakening U.S. consumer demand.
Gasoline, heating oil and natural gas prices fell as well. But analysts suggested that the coming Western hemisphere winter could push product prices upward again, with demand for heating oil outstripping supply because of refinery shortfalls and tight imports.
Light, sweet crude for November delivery on the New York Mercantile Exchange fell $1.43 to finish at $61.36 a barrel, the lowest settlement since Aug. 3. Crude is more than 13 percent off its recent high of $70.85, reached briefly on Aug. 30 after Hurricane Katrina struck the Gulf coast. That level is still about $20 below the all-time highs reached in the early 1980s, when adjusting for inflation.
"We've broken the back a little in the oil market," said Ed Silliere, vice president of risk management at Energy Merchant LLC in New York. Many traders took profits Thursday on expectations that crude prices will fall into the 50s next week, he said.
Brent crude futures for November fell $1.75 to settle at $58.37 on London's International Petroleum Exchange.
Heating oil futures fell more than 6 cents to settle at $1.9507 a gallon, while gasoline futures dipped more than 6 cents to settle at $1.8405.
However, prices at the gas pump still hover around $3 a gallon. On Thursday, the average U.S. price of a gallon of unleaded gas was $2.94 -- a dollar more than a year ago.
Natural gas plummeted 80.8 cents to settle at $13.375 per million British thermal units on Thursday, after the U.S. Department of Energy's Energy Information Administration said natural gas inventories rose 44 billion cubic feet in the week ended Sept. 30.
However, natural gas inventories are still nearly 5 percent below year-ago levels, and prices could surge again if demand rebounds or if another storm approaches the Gulf. The Atlantic hurricane season officially ends Nov. 30, according to the National Hurricane Center.
"We may not have seen the high in natural gas," Silliere said. "But it looks like we've seen the high in crude for some time."
The Energy Department said Wednesday that fuel consumption in the past month fell by nearly 3 percent compared with last year. Experts said demand was falling due to high pump prices and an economic slowdown in parts of the United States affected by hurricanes Katrina and Rita, such as the Gulf Coast states.
"The September numbers confirm the trend that historically high oil prices are now affecting oil consumption," Energyintel analyst John van Schaik said in a research note.
Meanwhile, reports of refinery recoveries continued to trickle in.
Chevron Corp. said Thursday its Pascagoula, Miss., oil refinery, which can produce up to 325,000 barrels of oil per day, could resume normal operations by the end of this month, slightly ahead of earlier estimates. Katrina had damaged the refinery's marine terminal, cooling towers and other vital equipment.
Chevron said Wednesday it has resumed some production at two large offshore platforms in the Gulf of Mexico, shut ahead of Hurricane Rita last month. Royal Dutch Shell PLC also said Wednesday that its 275,000 barrel-a-day Port Arthur refinery should restart within the month.
Oil and natural gas production are slowly recovering. On Thursday, 80 percent of oil production and 66 percent of natural gas production in the Gulf remained blocked, according to the U.S. Department of the Interior's Minerals Management Service.
--------------------------------------------------------------------------------
Other articles:
• Retail outlook for holidays unclear
• Oil prices continue to slide
• Goody's clothier to be sold in private deal
• For $90, writers can wipe away sting of rejection
• Conecuh County gets Hyundai supplier
• United Airlines signs off on financing plan
• MCI shareholders OK Verizon deal
• Datebook
Talk Alabama Forums
Click here to start or read a forum about this story, politics, sports, food, movies, music, religion or anything that concerns you.
--------------------------------------------------------------------------------