U.S. Crude Oil Inventories Rise to Highest Level Since 1990
Oil prices fell more than 2 percent on Wednesday as U.S. crude oil inventories grew to the highest level since 1990 and weak economic data stoked worries about energy demand.
Oil prices fell more than 2 percent on Wednesday as U.S. crude oil inventories grew to the highest level since 1990 and weak economic data stoked worries about energy demand.
In January, U.S. incomes dropped, but spending rose as consumers dug into savings to help cover rising utility costs and the increased price of gasoline.
The seasonally adjusted consumer price index dropped 0.3 percent in November from October, the Labor Department said Friday. Gas prices fell 7.4 percent, the steepest drop in nearly four years. That offset a 0.2 percent rise in food prices.
Ample supplies helped send oil prices down to near $85 per barrel on Friday.Benchmark oil for December delivery was down 80 cents to $85.25 a barrel at late afternoon Bangkok time in electronic trading on the New York Mercantile Exchange. Oil hasn't been that low since July 10.
Right now, with the spread of fracking technology, America is in the midst of a natural gas boom that is keeping prices for the fuel low. But according to a key strategist at Chevron, the era of an abundance of cheap natural gas in the U.S. will be short-lived.
Unlike last year, which for much of the nation featured "the winter that didn't come," this year is expected to bring only slightly warmer-than-usual temperatures and a record high for home heating oil prices. And that's bad news for one region of the country in particular.
More expensive gas drove up consumer prices in August by the most in three years. But outside of energy costs, inflation was tame. The CPI rose a seasonally adjusted 0.6% last month, the first increase since March and higher gas prices accounted for 80% of the increase.
U.S. consumer prices were unchanged in July from June, as a small drop in energy costs offset slightly higher food prices. The consumer price index hasn't changed since March, evidence that the weak economy is keeping inflation in check.
A new paper from Yale is drawing attention to exactly how much even a small shift toward natural gas would save consumers. And it has the potential to spark a major change in America's energy business.
Republican lawmakers are alleging that the EPA's new greenhouse gas regulations would kill the U.S. coal industry by making it too expensive to build new coal-fueled power plants. But even if that's true, how will it impact you?
President Obama on Wednesday appeared to raise the possibility that the U.S. would release oil from its strategic petroleum reserve to provide relief to Americans struggling with high gas prices. But is now the right time?
The inflation bells are ringing. You've seen the jump in prices at the grocery store, and, maybe more significantly, at the gas pump. But are these price hikes a sign that inflation is about to take off, or are they just temporary increases?
Skyrocketing prices don't have to bring only pain. Investors can also find some relief with investments that can benefit from oil's recent -- and likely future -- increases. Here are some ETFs and mutual funds worth considering, based on performance, risk and cost.
Unrest across the Middle East is pushing high oil prices higher, and that's having a cascade effect that feels a lot like inflation as these higher prices bubble through the economy. Still, that's not enough reason for the Fed to battle inflation by starting to raise rates.
The Fed's next consumer price report out Thursday is likely to show a scant 0.3% rate in January. So why does it feel like prices everywhere are climbing noticeably? A different way of measuring inflation from MIT's Billion Prices Project provides an answer.
Proponents of the peak-oil theory can muster studies and statistics backing their claim that declining global oil output is nigh. Critics point to new technologies and unconventional oil fields as saviors. Either way, a return to the days of $1.50-a-gallon gasoline isn't going to happen.
Inflation in 2010 was low, according to the consumer price index. But underlying growth in the cost of energy, raw materials and health care could indicate significant inflation this year. And that could mean higher prices for consumers or lower profits for companies.
It's hard to make huge changes in your spending habits all at once. To reach your new year's resolution to manage your finances better, try small steps instead. Financial experts offer 10 easy suggestions that could help you spend less and save more in 2011.
One would think that BP's massive Gulf of Mexico oil spill this year would have given pause to the global oil industry, but that doesn't appear to be the case. Companies in the sector are planning to spend a record $490 billion in 2011, including a large amount for deep-water development.
First Solar, one of the world's biggest solar manufacturers, is looking toward 2011 with plenty of good cheer. According to its latest forecast, released Tuesday, the company expects sales to heat up some 46% in spite of lower subsidies in Germany, the world's largest solar market.
Producer prices rose less than expected, with much of the hike coming from energy. Excluding food and energy, PPI fell 0.6% in the month. Overall, wholesale prices are up just 1.5% in the past year -- still too close to deflation for the U.S. Federal Reserve.
Natural gas prices have been persistently sluggish lately, but it looks like deal-making is revving up: The latest offer comes from the CEO of Exco Resources, Douglas Miller, who has offered to buy the energy company for $20.50 per share or about $4.4 billion.
Producer prices rose a higher-than-expected 0.4% in September, but the core rate rose just 0.1%, the Labor Department said. The price increases point to a low-inflation environment, easing concerns that the world%u2019s largest economy will lapse into a dangerous deflationary spiral.
The Organization of the Petroleum Exporting Countries will leave oil output unchanged, a delegate at the group's current meeting told Reuters. Oil ministers apparently are not worried the weak dollar will drive up the price of crude far enough that it will crimp the global economic recovery.
Producer prices rose a slightly higher-than-expected 0.4% in August, but the core rate, which excludes food and energy, rose just 0.1%, the Labor Department said. The rises point to a low-inflation environment for the U.S. economy, easing concern that the world%u2019s largest economy will lapse into an unwanted period of deflation.
The mid-Atlantic region, hard hit last winter, will catch a break from the weather next time, says the Farmer's Almanac, but much of the rest of the U.S. will be colder than normal, New England in particular. For those who heat their homes with oil, however, lower prices should ease the season.
President Obama's $2 billion booster shot for solar is surely good news for the green energy sector. But it may not be enough to counter the drag of a global economic stall that many see coming. Because when other energy prices fall, solar investment tends to dry up.
ExxonMobil's fourth quarter earnings fell 23% year-over-year, marking Exxon's fifth straight decline in quarterly profit. However, the world's largest public oil company beat analysts expectations, and shares are rising in early trading.




























