Oil Falls a Second Day on Reduced Chance of Supply Disruptions

[The Straight Story]

Oil Falls a Second Day on Reduced Chance of Supply Disruptions

By Mark Shenk

Oct. 5 (Bloomberg) -- Crude oil fell for a second day as an agreement in Nigeria and a planned UN visit to Iran reduced concern that supply will be disrupted.

Oil dropped as much as 2.7 percent after Nigerian militants accepted an amnesty agreement yesterday, signaling that tensions are easing in the country’s oil-producing region. A United Nations official said inspectors would visit an Iranian uranium processing plant on Oct. 25. Iran and Nigeria were OPEC’s second- and eighth-biggest oil producers last month.

“The most recent news from Nigeria and Iran has taken some of the geopolitical premium out of the market,” said Mike Fitzpatrick, vice president of energy with MF Global in New York. “Much of the recent economic data has been disappointing, but it hasn’t been enough to get prices to break out of the recent range.”

Crude oil for November delivery fell $1.21, or 1.7 percent, to $68.74 a barrel at 12:01 p.m. on the New York Mercantile Exchange. Futures have traded between $65.05 and $75 since Aug. 1. Prices have gained 54 percent this year.

http://www.bloomberg.com/apps/news?pid=20601081&sid=aLe2iy5N5eZs

[imdjh]

1. market is really comfortable - yeah

"“The market is really comfortable in the $70 area,” said Rick Mueller, a director of oil markets at Energy Security Analysis Inc. in Wakefield, Massachusetts. “Prices will probably stay between $65 and $75 a barrel as long as the Saudis are showing discipline.”"

I was a lot more comfortable at $1.50 gallon for gasoline that I am at $2.39. It's really not the extra $20 month as much as it was that I just didn't feel as screwed at the lower price. Not only that, but when regular is $1.50 I can splurge on Tokyo Rose and give her premium.

[AndyA]

2. Reduced chance of supply disruptions = bad thing for oil companies

They so hate to raise prices on the chance that some war somewhere might disrupt supplies...but they do it anyway... (fuckers)

[Romulox]

3. Oil prices are fixed by a cartel.

:hi:

[Cirque du So-What]

4. In response to this news

Gasoline prices rose from $2.23 to $2.39 for a gallon of unleaded regular in my neighborhood today.

[Subdivisions]

5. Wow! $65??? That is EXPENSIVE for a barrell of oil!

The era of cheap oil has ended.