Let’s think about this, could diesel fuel prices and gas price relief be in the air? Today Saudi Arabia’s powerful oil minister, Ali Naimi, made a rare intervention into overheating oil markets on Tuesday, declaring that high oil prices were “unjustified” and vowing that the kingdom would boost its output by as much as 25 percent if necessary.
That would seem very favorable that the largest oil producing country thinks fuel prices are to high. I also think which can help all of us with some fuel savings is DOE is considering tapping the SPR, a department official said, possibly in conjunction with the International Energy Agency, which advises 28 countries, Bloomberg said.
Just the DOE talking about it will make investors back off from investing in oil going higher.
Oil fell to near $105 a barrel Wednesday following a Department of Energy report that showed crude inventories rose, while the department considered tapping the government’s Strategic Petroleum Reserve, Bloomberg reported.
Crude futures slipped more than $2 to just over $105 a barrel on the New York Mercantile Exchange, after finishing Tuesday at $107.33, the highest closing price since March 19.
Crude stockpiles jumped 7.1 million barrels last week, DOE said, well over the 2.6 million-barrel gain forecast by economists, Bloomberg said.
Gasoline supplies fell by 3.5 million barrels for the week ended Saturday, while distillates, which include diesel, fell by 700,000 barrels, DOE said in its weekly report.
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