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As oil rallies, physical market suggests ample supply

Reuters -- Oil has rallied to within sight of its 2010 high this week, but the physical crude markets in Asia and Europe are telling a more bearish story about oversupply and sluggish demand.

The contrast between the oil price, which topped $83 a barrel on Wednesday, and signs of weak physical markets might preoccupy OPEC when it meets on March 17 and raise the issue of whether markets have too much oil.

"If you get on the ground and look at the fundamentals, you see too much crude oil production by OPEC," said Paul Tossetti, senior energy adviser at PFC Energy.

Russian crude prices have weakened and top oil exporter Saudi Arabia cut Asian oil prices to 14-month lows for April, while the Organization of the Petroleum Exporting Countries pumped the most oil in over a year in February.

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Submitted Mar 11, 2010 By: Mudsprings

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ricker8 Champion Author Ontario Posts:2,326 Points:471,815 Joined:Oct 2008	Message Posted: Mar 11, 2010 9:48:00 AM Ignore ricker8 Report Abuse there gas been a hugh surplus for years, they can just set prices at what ever they want- they have us over the barrel.
uglytom Champion Author Florida Posts:3,101 Points:679,115 Joined:Jul 2007	Message Posted: Mar 11, 2010 9:46:29 AM Ignore uglytom Report Abuse Don't use oil products..or at least minimize there use. The Arabs need to start drinking their oil or swim in it!
arnerator Champion Author Seattle Posts:3,227 Points:652,910 Joined:Sep 2008	Message Posted: Mar 11, 2010 9:44:14 AM Ignore arnerator Report Abuse Well, Duh...speculation and manipulation are setting prices. Like nobody knows that. Great example of so called free market.
sg413 Champion Author California Posts:2,029 Points:449,010 Joined:Apr 2008	Message Posted: Mar 11, 2010 9:43:48 AM Ignore sg413 Report Abuse Conserve everyone. Make their life miserable!
BartBuzz Champion Author Atlanta Posts:3,923 Points:807,085 Joined:Aug 2006	Message Posted: Mar 11, 2010 9:43:16 AM Ignore BartBuzz Report Abuse I smell another price hike. Keep conserving.
MG_Sputnik Champion Author Philadelphia Posts:3,223 Points:1,028,830 Joined:Apr 2006	Message Posted: Mar 11, 2010 9:42:59 AM Ignore MG_Sputnik Report Abuse In any case, we lose.
IammeCA Rookie Author Ventura Posts:30 Points:54,025 Joined:Sep 2009	Message Posted: Mar 11, 2010 9:39:22 AM Ignore IammeCA Report Abuse For what it's worth here is my take: The law of supply and demand has not been revoked, it still applies. The result of the speculation is to make the market unstable, so instead of small adjustments dictated by direct supply and demand we get these large destabilizing swings. The speculators create a false demand by buying and storing. This can only be sustained for so long. Sooner or later that stored oil will need to be sold and the price will tumble. A few of the smartest/luckiest speculators will start selling at the top of this curve and make a bundle the rest will lose their shirts (and I won't shed a single tear for them). Then, after the price has tumbled the speculators will start buying at the low price and storing it, waiting for the price to rise. The cycle starts over. In addition to pushing for regulations to control these speculators who do not take delivery, the best thing we can do is keep the demand as low as we can and hope that as many as these speculators as possible lose big.
Jeff1944 All-Star Author South Dakota Posts:832 Points:211,265 Joined:Jan 2010	Message Posted: Mar 11, 2010 9:38:19 AM Ignore Jeff1944 Report Abuse Obviously speculation is driving the gas market, because supply and demand are not.
egd Champion Author Twin Cities Posts:4,050 Points:1,331,685 Joined:Mar 2005	Message Posted: Mar 11, 2010 9:37:21 AM Ignore egd Report Abuse demand is expected to rise faster than supply
checkum Champion Author St. Louis Posts:3,330 Points:660,265 Joined:Jan 2008	Message Posted: Mar 11, 2010 9:35:30 AM Ignore checkum Report Abuse I for one am tired of bending over and taking it from "Big Oil." supply is adequate for lower prices at the pump, not continually inching upward!
CPapi Veteran Author Chicago Posts:349 Points:83,850 Joined:Nov 2009	Message Posted: Mar 11, 2010 9:31:59 AM Ignore CPapi Report Abuse Ample supply; and the previous article said refineries are cutting production
NavyEOD Champion Author Los Angeles Posts:5,139 Points:1,058,540 Joined:Jul 2007	Message Posted: Mar 11, 2010 9:31:18 AM Ignore NavyEOD Report Abuse No more speculation.
njerald Champion Author Seattle Posts:2,886 Points:665,405 Joined:Oct 2007	Message Posted: Mar 11, 2010 9:26:37 AM Ignore njerald Report Abuse These so-called Experts are surprised daily, weekly, monthly and annually......more intelligent IDIOTS.
jarrjazz1 Champion Author British Columbia Posts:2,189 Points:446,240 Joined:Sep 2008	Message Posted: Mar 11, 2010 9:18:02 AM Ignore jarrjazz1 Report Abuse keep conserving!
SUPERQUACK Champion Author Sacramento Posts:1,467 Points:986,025 Joined:Jun 2007	Message Posted: Mar 11, 2010 9:16:47 AM Ignore SUPERQUACK Report Abuse WAIT AND SEE ......PRICES AT PUMP HEADED UP ....
twiper1 Champion Author San Diego Posts:2,926 Points:628,095 Joined:Oct 2008	Message Posted: Mar 11, 2010 9:16:14 AM Ignore twiper1 Report Abuse One article says cutting production, another says ample supply. What is it?
The_Gunslinger Champion Author Arkansas Posts:1,897 Points:384,340 Joined:Oct 2008	Message Posted: Mar 11, 2010 9:15:37 AM Ignore The_Gunslinger Report Abuse No reason whatsoever for oil to be this high right now.
skippypa Champion Author Hawaii Posts:3,509 Points:762,190 Joined:Jun 2008	Message Posted: Mar 11, 2010 9:15:11 AM Ignore skippypa Report Abuse With supply more than demand, how are the speculators explaining the high price of oil?
Robert44 Champion Author Columbus Posts:2,835 Points:752,000 Joined:Mar 2004	Message Posted: Mar 11, 2010 9:09:54 AM Ignore Robert44 Report Abuse Up and Down, Up and Down, so on ...
Blackice Champion Author Twin Cities Posts:3,191 Points:805,490 Joined:Oct 2003	Message Posted: Mar 11, 2010 9:08:35 AM Ignore Blackice Report Abuse Drill here and send OPEC oil prices lower. Oh that's right...speculators control the price of oil...not supplies.
tomok Champion Author Portland Posts:18,292 Points:1,366,160 Joined:Aug 2006	Message Posted: Mar 11, 2010 9:06:05 AM Ignore tomok Report Abuse When big oil and the refiners create false shortages by producing less fuel and raise the fuel prices at the pump, then there is an ample supply of fuel. OPEC, big oil, refiners and those speculators will continue to ‘stick it’ to the consumer somehow, someway.
rowing All-Star Author Macon Posts:880 Points:261,610 Joined:Sep 2009	Message Posted: Mar 11, 2010 9:05:33 AM Ignore rowing Report Abuse this roller coaster ride on gas is called being greedy!
SeerLV Champion Author Las Vegas Posts:3,483 Points:714,660 Joined:Jun 2008	Message Posted: Mar 11, 2010 9:03:46 AM Ignore SeerLV Report Abuse The price should be lower based on the "fundamentals" but is not due to manipulation.
nigelb Champion Author Virginia Posts:3,484 Points:526,025 Joined:Feb 2008	Message Posted: Mar 11, 2010 9:03:32 AM Ignore nigelb Report Abuse Development of viable alternative fuels will help alleviate our dependence on the OPEC tyrants.
Doubleeez Champion Author Connecticut Posts:2,732 Points:544,215 Joined:Sep 2005	Message Posted: Mar 11, 2010 9:02:55 AM Ignore Doubleeez Report Abuse More speculation interference. PLACE A FEDERAL BAN ON SPECULATION IN THE OIL INDUSTRY !!
esorsd Champion Author St. Louis Posts:1,077 Points:689,125 Joined:May 2005	Message Posted: Mar 11, 2010 8:59:39 AM Ignore esorsd Report Abuse we can hope for lower prices...
gasie1 Champion Author Maine Posts:5,622 Points:1,567,065 Joined:Nov 2005	Message Posted: Mar 11, 2010 8:59:24 AM Ignore gasie1 Report Abuse Time to buy Exxon stocks now.
POPSAZ All-Star Author Arizona Posts:650 Points:277,340 Joined:Feb 2009	Message Posted: Mar 11, 2010 8:59:06 AM Ignore POPSAZ Report Abuse Gas is almost the same price of Diesel in AZ.
915Chief Champion Author San Diego Posts:3,630 Points:712,775 Joined:Aug 2008	Message Posted: Mar 11, 2010 8:58:53 AM Ignore 915Chief Report Abuse pure speculation
DeepInOhio Champion Author Ohio Posts:1,935 Points:628,480 Joined:May 2008	Message Posted: Mar 11, 2010 8:58:25 AM Ignore DeepInOhio Report Abuse sigh
milespergallon Champion Author Illinois Posts:4,983 Points:1,047,395 Joined:Feb 2007	Message Posted: Mar 11, 2010 8:56:34 AM Ignore milespergallon Report Abuse Specu-traitor market is going to ruin this country!
CPayZombie Champion Author Phoenix Posts:4,325 Points:676,625 Joined:Aug 2008	Message Posted: Mar 11, 2010 8:54:20 AM Ignore CPayZombie Report Abuse It is a vicious circle.
DAK1960 Champion Author Illinois Posts:1,917 Points:402,185 Joined:Nov 2008	Message Posted: Mar 11, 2010 8:52:45 AM Ignore DAK1960 Report Abuse they are just ripping off the consumer
suzyq2007 Champion Author Dallas Posts:2,794 Points:776,200 Joined:Oct 2007	Message Posted: Mar 11, 2010 8:51:57 AM Ignore suzyq2007 Report Abuse we all know there is a huge surplus of oil and this means that gas prices should not be as high as they are.
DerTaubman Champion Author Detroit Posts:2,388 Points:552,365 Joined:Jun 2007	Message Posted: Mar 11, 2010 8:51:35 AM Ignore DerTaubman Report Abuse Up fifteen cents here too.
walkit1 Champion Author Memphis Posts:1,254 Points:719,650 Joined:Jan 2007	Message Posted: Mar 11, 2010 8:47:52 AM Ignore walkit1 Report Abuse We are up .05 to .08 in the last few days.
cdanielwyke Champion Author Greensboro Posts:1,550 Points:409,385 Joined:Sep 2008	Message Posted: Mar 11, 2010 8:46:38 AM Ignore cdanielwyke Report Abuse The supply/demand ratio hasn't changed. We still have a huge amount of oil supply, and demand is still dismal because people are out of work. The run up over the past few weeks is all a hoax. The real goal is for investors to make some quick money on a volatile commodity.
miatabill Champion Author St. Louis Posts:2,522 Points:242,185 Joined:Mar 2003	Message Posted: Mar 11, 2010 8:46:09 AM Ignore miatabill Report Abuse Ours went up 15 cents Tuesday.
Lizzylou Champion Author Stockton Posts:4,515 Points:1,500,700 Joined:Oct 2005	Message Posted: Mar 11, 2010 8:45:49 AM Ignore Lizzylou Report Abuse "Markets have too much oil"??? And the price of the barrel is increasing???
my2002m Champion Author Tulsa Posts:1,322 Points:699,590 Joined:Jul 2008	Message Posted: Mar 11, 2010 8:45:36 AM Ignore my2002m Report Abuse Demand does not support the current price levels. Its market speculation. Tell us something we don't know.
wwcj Champion Author Virginia Posts:1,530 Points:371,345 Joined:Jul 2008	Message Posted: Mar 11, 2010 8:44:29 AM Ignore wwcj Report Abuse Get your Governors to start drilling, VA Gov is trying to make his start an Oil provider. Talk about potential job growth and reduced oil prices.
papou Champion Author Tampa Posts:5,673 Points:935,235 Joined:Jul 2005	Message Posted: Mar 11, 2010 8:43:45 AM Ignore papou Report Abuse who understands this talk.
justinoles All-Star Author Orlando Posts:855 Points:177,030 Joined:Jul 2009	Message Posted: Mar 11, 2010 8:42:17 AM Ignore justinoles Report Abuse I am not into a lot of Government oversight, but this market seems to need it because the fragile economy can't handle greed.
RUNNER10520 Sophomore Author Cleveland Posts:117 Points:560,340 Joined:Mar 2006	Message Posted: Mar 11, 2010 8:40:31 AM Ignore RUNNER10520 Report Abuse When they start losing their island and their sales slow down then they will start dumping cheap gas on the market and price waring among them selves and the public will rep the benefits. Just give it some time and don't use anymore gas then you need to.
GryphonX Champion Author Nevada Posts:2,871 Points:729,205 Joined:Nov 2007	Message Posted: Mar 11, 2010 8:38:30 AM Ignore GryphonX Report Abuse I'm with afghaned
afghaned Champion Author Hamilton Posts:4,346 Points:309,100 Joined:May 2004	Message Posted: Mar 11, 2010 8:35:35 AM Ignore afghaned Report Abuse Darn greedy blood suckers are the cause of the higher prices. Make them physically hold what they buy & see how long the prices stay high.
jb107 Champion Author New Jersey Posts:4,685 Points:1,644,235 Joined:Sep 2005	Message Posted: Mar 11, 2010 8:34:42 AM Ignore jb107 Report Abuse The speculators are at it again. They could care less about any one but themselves.
sivart Champion Author Arkansas Posts:11,905 Points:2,101,030 Joined:May 2004	Message Posted: Mar 11, 2010 8:33:35 AM Ignore sivart Report Abuse I speculate the gas price will rise!
indyjim Champion Author Indianapolis Posts:4,747 Points:1,346,645 Joined:Jul 2006	Message Posted: Mar 11, 2010 8:32:09 AM Ignore indyjim Report Abuse Everything points to lower prices, but here we are at $83 a barrel.
vizilo Champion Author British Columbia Posts:1,926 Points:1,833,570 Joined:May 2004	Message Posted: Mar 11, 2010 8:29:59 AM Ignore vizilo Report Abuse Never makes a lot of sense
Chummy37 All-Star Author Calgary Posts:847 Points:454,690 Joined:Jan 2008	Message Posted: Mar 11, 2010 8:28:39 AM Ignore Chummy37 Report Abuse We will be paying more come spring.
davidel57 Champion Author Houston Posts:2,221 Points:437,915 Joined:Apr 2008	Message Posted: Mar 11, 2010 8:28:10 AM Ignore davidel57 Report Abuse the market is driven by speculators. No speculation about that!