Price of oil fell 8.6% in one day

[hypocritexposer]

Amazing what a few drilling permits will do.

WASHINGTON -- The House passed legislation Thursday to require the Obama administration to move ahead this year with lease sales -- three in the Gulf of Mexico and one off the coast of Virginia -- that were canceled by the administration after the Deepwater Horizon oil spill.

The vote was 266-149, with 33 Democrats - including Rep. Cedric Richmond, D-New Orleans - voting "yes" and 2 Republicans voting "no."

The administration opposed the bill which it said would "hastily open areas of the Gulf of Mexico and the Atlantic using outdated (National Environmental Policy Act) analysis that was conducted before the Deepwater Horizon oil spill."

http://www.nola.com/politics/index.ssf/2011/05/house_passes_bill_to_force_off.html

 

[Steve]

locally gas has dropped over 10 cents..

is it all because of the bill or as the media reports, that supplies are outpacing demand, speculators have had to pay margins ect..

I am sure demand has dropped off.. but has supply picked up?

Crude oil dropped to a two-week low as a U.S. Energy Department report showed supplies surged and on signals that American economic growth is slowing. "We were already poised for a move lower when the inventory data and the negative economic numbers came out. This is looking like a perfect time to take risk off the table."

Gasoline inventories fell 1.05 million barrels to 204.5 million last week, the lowest level since June 2009. Supplies were forecast to drop 500,000 barrels, according to the median of 15 analyst responses in the Bloomberg News survey. Stockpiles of distillate fuel, a category that includes heating oil and diesel, declined 1.4 million barrels to 145.1 million.

"High pump prices are obviously having an impact on demand and may be hurting the overall economy as well."

http://www.bloomberg.com/news/2011-05-04/crude-oil-declines-a-third-day-in-new-york-after-u-s-inventories-increase.html

oil inventories up, gas/diesel inventories down substantially, and an economy in freefall*..







I used shampooies definition of freefall for the economy, so it may just pick up as soon as gas prices fall..