The Oil Drum

wow.

8 MBD primarily came from Gulf and East coasts, so the pipeline problems in Minnesota weren't to blame in those areas. Still the overall report would be several million barrels higher, and we would have had a net gain in overall inventory instead of the about 3.5 MB drop.

However the decline is still troubling. Areas that have been getting cheap gas up until very recently are likely to start paying 15-30 cents more sometime this winter, despite the rise in Gasoline inventory. Warm weather in those parts could raise the price more. Quite frankly 8 MB drops are unsustainable. Another one and OPEC sitting on its hands and 100 is all but assured before Xmas. It would take much less than that.

Bernanke has to cut too, so we really are in for an interesting last few weeks of the year. Got through November without seeing 100, don't think we'll make it through December, although it would be nice to wait until first week of January.

wow; 2008 going to be interesting.

And,OPEC prod DOWN for NOV(31.14 vs 31.17 for Oct/07).OPEC10 down 50m(27.09 vs 27.14).I guessed +100m.OPEC10 target is 27.25.Everyone tip-toeing around the UAE issue.No press on this yet.

Well, I continue to watch the parking lot for indications that people are using more gasoline but data suggests they are staying home. If this phenomenon is being played out across the US could it indicate a growing conservative movement?

I checked with the local Home Depot and sales of florescent bulbs are up, even thought they are higher priced than incandescents.

If Crude inventories are dropping while gasoline inventories are dropping much slower, then I suggest that conservatism, ( or lack of spending money), is growing. The supply side price of crude would have to drop if demand is falling.

Can anyone suggest where I might look for more data on a trend towards conservatism?