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View Full Version : gas prices drop as Paris-based company releases oil and gas to help U.S.


Mr. Laz
09-04-2005, 11:36 AM
Posted on Sat, Sep. 03, 2005

http://www.kansascity.com/mld/kansascity/business/12550493.htm

Gas prices drop from record-high levels, but relief could be temporary
$3.00 at the pump — now you see it, now you don’t

By STEVE EVERLY
The Kansas City Star

Wholesale gas prices dropped sharply Friday, and by late evening prices at most area pumps were following suit.

The drop brought a gallon of unleaded down to $2.99 and nine-tenths at many stations on the Missouri side of the metropolitan area, heralding a break from record-high prices for motorists.

Prices generally run a few cents more on the Kansas side, where gas taxes are higher.

The swing in wholesale gas prices earlier in the day came after the Paris-based International Energy Agency announced it would release 60 million barrels of oil and gasoline to help replace production lost after Hurricane Katrina.

The average wholesale price of gasoline in the Midwest declined 32 cents per gallon Friday, according to Bloomberg Business News. The price decline in each market can vary, but the wholesale price of gas in the Kansas City area was expected to go down Friday evening.

Besides the decline in gas prices, crude oil was down $1.90, closing at $67.57 for a barrel of West Texas Intermediate.

“We got a little relief today,” said Lewis Adam, president of Admo Energy, an energy consulting firm in Kansas City. “But this is a real crisis, and it’s going to take some time.”

Adam said there could still be some fluctuation in gas prices in the coming days as the energy market gets a better sense of damage along the Gulf Coast.

Energy traders will be keeping a close eye on gasoline inventory numbers to be released Wednesday. Gas inventories are expected to show a substantial drop because of a surge in demand as panicky motorists topped off their tanks this week fearing more price increases or shortages. A tight inventory number could cause prices to go up.

For most of the day Friday, pump prices in the Kansas City area Friday averaged $3.19 on the Missouri side and a few cents higher on the Kansas side — another record even when past prices are adjusted for inflation. Before this week, the previous national record was in March 1981.

The International Energy Agency said its members would release gas and oil supplies from stockpiles. The agency, which consists of 26 energy-consuming nations including the United States and European countries, is based in France, where motorists are paying $5.74 for a gallon of gas., the normal price.

Friday’s decline in wholesale prices was widespread. The New York Harbor price, for example, collapsed 75 cents per gallon. The price there had climbed higher than in the Midwest because two pipelines to the East Coast were shut down by the hurricane. Those pipelines have begun to resume operations.

The federal Minerals Management Service said 89 percent of daily oil production in the Gulf of Mexico was still shut down — a precaution taken before Katrina struck. Separately, 72 percent of natural gas production remained shut down. Energy companies continued to evaluate the damage to rigs and other infrastructure such as pipelines.

There also was some good news about refineries. Ten remained shuttered, with two of them making product for petrochemical industries. But four of the eight other refineries have little or no damage, according to the Department of Energy. The four others have “water” or “major” damage. Those refineries have a capacity of about 879,000 barrels of day. About half of that is gasoline — or roughly 5 percent of the daily demand for gasoline.

The key Capline pipeline has also returned to operation, although at reduced levels.

The resumption of the pipeline, which transports crude oil, is expected to help six refineries in the Midwest that have had reduced runs.

BigMeatballDave
09-04-2005, 11:45 AM
Paris, Texas?

Paris, France?

If its from France, I may reconsider my ban on French toast...

Mr. Laz
09-04-2005, 11:48 AM
Paris, Texas?

Paris, France?

If its from France, I may reconsider my ban on French toast...
france i think


http://www.iea.org/


notice the contact phone #'s

Phone: (+33) 1 40 57 65 50

penchief
09-04-2005, 08:00 PM
Paris, Texas?

Paris, France?

If its from France, I may reconsider my ban on French toast...

Really, I guess the French don't hold grudges against contemptuous, petty foreign governments that hurl childish insults at allies whom they have disagreements with.

craneref
09-05-2005, 12:16 AM
Yeah, you got to give the French credit here, because I am sure that with oil pushing $70 a barrel, it must have been a HUGE sacrifice for them to make more oil available for sale.

Uatu
09-05-2005, 01:03 AM
They're feeling our pain... all the way to the bank.

But the outcome is important and not motives, I suppose.