GREY:CLLZF - Post by User
Post by
jerridon Oct 14, 2005 8:21pm
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Post# 9706352
CLL no were but up...
CLL no were but up...The Energy Information Administration reported this week that U.S. crude oil output in September fell to the lowest monthly level since 1943 as Hurricanes Katrina and Rita interrupted oil production in the Gulf.
September oil production averaged 4.197 mbbl/d. That's the lowest level since July 1943, when only 4.117 mbbl/d was produced.
According to the EIA, September was the first month that saw production below 5 mbbl/d since April 1950.
During the last week of September, 100% of U.S. oil output in the Gulf of Mexico, which usually averages around 1.5 mbbl/d, was shut in by the hurricanes.
The EIA noted that as of Wednesday, 70%, or just over 1 mbbl/d, in offshore oil production was still off line.
The agency expects total domestic oil production to increase in the coming months as companies begin to resume their offshore operations.
However, the EIA said that it did not expect Gulf oil production to return to normal until the end of March.
Imported oil is somewhat helping to replace some of the lost production.
U.S. crude imports averaged over 8.6 mbbl/d last week, up 500,000 bpd from the prior week. Gasoline imports set a record for the second week in a row, averaging over 1.4 mbbl/d.
Current energy prices won't go anywhere but up.
Take a look at this chart:
This graph shows the annual oil price increase from March to March since 2004.
The average increase over the past 3 years is 29.3%.
A 29.3% increase from March 2005 would put oil at $84.70.
What I'm trying to get at is even when Gulf production returns to normal, prices will continue to climb.