Oil Supply Concerns Misleading

The rise in the price of crude oil of over that past two weeks seems to stem mostly from fear and greed as this commodity is traded haphazardly in the global markets. Of great concern is how information concerning cause and effect can be misleading creating chaos. The general public becomes the victim especially when the price being paid for gas and heating oil in conjunction with the price increase of crude oil.

Much of that drop was due to a decline in imports of almost a million barrels a day because fog closed the Houston Ship Channel last week, analysts said.

Source: ap.google.com via watermon

Shortly after the Energy Information Agency released the production, imports stocks, supply, prices, data and analysis with This Week in Petroleum report on December 12, oil futures started to rise at the NYMEX. One reason that's stated for the rise was a decrease in the weekly supply of crude stocks and imports, which many commodity analysts stating was caused by a delay in tanker ships inbound the Houston Ship Channel, which was closed due to fog from December 9th -11th.

For instance, immediately following the fog clearing the shipping channel reopened and 25 tanker ships transporting approximately 12,000,000 barrels of crude oil entered the ports of Texas City and Houston supplying the refineries over the next three days ending on Friday December 14, 2007. The EIA TWIP report in question was based on the time period from 8-14December. So where did the decline of imports occur if not on the Gulf Coast region?

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Tags: Eia | Houston | Texas | commodity traders | crude Oil | Gulf_Coast | Money & Stuff | oil futures | oil imports | oil report | oil supply | Port of Port of City | prices | refineries | Ship Channel | tanker ships | TWIP