Reuters reports that U.S. demand for oil fell 800,000 barrels per day (bpd) during the first half of 2008 compared with the same period a year ago. This was the biggest volume decline in 26 years according to the Energy Information Administration (EIA). You can see the EIA's report and outlook here.
In its latest monthly energy forecast, the EIA said the huge drop in demand was due to slower U.S. economic growth and the impact of high petroleum prices.
The drop in U.S. oil demand helped offset a 1.3-million bpd increase in petroleum consumption in nonindustrial countries during the first half of the year.
As a result, preliminary data shows that global oil consumption rose by 500,000 bpd in the six-month period, the EIA said.
The Energy Department's analytical arm sees continued falling oil demand, and for the first time is predicting that U.S. petroleum consumption in 2009 will be lower than this year, which would mark a drop in annual demand for three years straight.
Gas prices have also been falling according to the EIA's website and the AAA's Fuel Gauge Report. However, as the AAA's site indicates gas prices are still over a $1 above prices from a year ago. This means the trend of high gas prices remains high and that so far gas prices are probably just falling because the peak summer driving season has passed.
Today's stock market was almost a complete reversal of what occurred on Monday. The DOW climbed over 260 points and the Nasdaq rose over 55 points. Each index was up about 2.5% on the day.
U.S. stocks staged a solid rally Tuesday to more than recoup the prior day's steep losses, as consumer confidence rose and crude prices declined, offering some respite to ongoing concerns about the economy.
"These are good things and when you combine that with relatively low rates, maybe we can be happy at least one day this week," said Kevin Giddis, managing director, Morgan Keegan & Co.
The major stock indexes built on gains to end at or near session highs after data showing a better-than-forecast rise in consumer confidence and the price of crude fell nearly $4 a barrel.
The main reason for the optimism today was the fact that oil prices fell again. Oil closed at $122.19 a barrel on the New York Mercantile Exchange. It was a two-month low for oil as Reuters reports in the video below. If oil were to continue falling maybe the market could sustain something longer than a single day rally.
Josh Landis and Mitch Butler of the "Fast Draw" team take a close look at what determines the price of oil and the impact price fluctuations have on the overall U.S. economy. The main factor driving up the prices is falling value of the U.S. dollar. Since 2001 the value of the U.S. dollar has been plunging against currencies like the Euro. Speculators also help to drive up oil prices.
Just as stocks seemed to be gaining some momentum oil closes at above $100 a barrel for the first time and the rally fizzles. The Dow ended up down over 10 points and the Nasdaq fell by over 15 points. There is concern that the high oil prices will translate into high gas prices during the summer driving months that will reduce consumer spending even more than the weak economy already has. In the video Reuters says OPEC mentioned a supply cut which helped to drive up oil prices.
A Connecticut electricity supplier called MXEnergy has found an unusual way to sell energy - by auctioning it on eBay.
MXEnergy, one of several electricity suppliers in the state's deregulated market, is offering homeowners and small businesses electricity rates that are locked in, similar to power purchases by large commercial and industrial customers.
To promote its business among United Illuminating's 320,000 customers, the Stamford-based MXEnergy is auctioning off 1 megawatt of electricity to the highest bidder before Dec. 13. As of Friday afternoon, the highest of 18 bid's was $132.50.
MXenergy will accept the highest bid on a megawatt, or 1,000 kilowatts, of electricity and divide it by 1,000 to determine the rate at which the winner can purchase up to 10 megawatts in a year after signing up with MXenergy.
That's about how much electricity an average household uses annually, said Jeffrey Mayer, president and chief executive of MXEnergy.
MXEnergy has 500,000 customers according to the Fool.com story. The eBay auction listing can be found here.
Oil has continued soaring. It has now moved past the $92 mark and the question now is will it continue to climb to $100 or fall back? Reuters looks at the soaring oil prices in this video. Reuters says oil may continue upwards due to limited supply and some say traders think it is more likely to hit $100 before retreating back to $80.
Those forecasts for oil to hit $100 a barrel aren't sounding very funny anymore. Oil closed voer $89 a barrel today because of concerns in the Middle East. Turkey has approved the entry of its troops into Iraq which greatly escalate problems in what is already a troubled region. CNN reports that gas prices are just starting to feel the impact from the soaring oil prices. The AAA has gas prices up 4 cents already for the week.
Earlier in the day, crude prices scrambled to an all-time trading high of $89.55 a barrel.
Prices at the pump have been slow to respond to rising crude prices recently, but that may be changing. On Thursday, gas prices gained nearly 2 cents to a national average of $2.79 a gallon for regular-grade gasoline, according to AAA. They are up 4 cents since Monday.
Prices at the pump have been slow to respond to rising crude prices recently, but that may be changing. On Thursday, gas prices gained nearly 2 cents to a national average of $2.79 a gallon for regular-grade gasoline, according to AAA. They are up 4 cents since Monday.
"There's almost an inevitability here now that we are going to get to $100 a barrel," said John Kilduff, an energy analyst at Man Financial in New York.
Helping to lift crude prices higher was a decline in the dollar, which fell to an all-time low versus the euro and also dipped versus the yen
Oil closed at $89.47 a barrel. You can track energy prices here on Bloomberg.com. This graph shows how rapidly oil prices have been climbing in 2007.
Greenbiz.com has provided an interesting article (via Principled Profit) about the top green business stories of 2006. Here are the stories they included in their list.
Wal-Mart Goes from Zero to Hero
Alt-Fuel Vehicles Get in Gear
Carbon Neutral Brings Hope and Hype
Financial Sector Takes on Climate
Investors Flex Their Muscle on Climate
Renewables Become the New Recycled
Water Rises as a Business Issue -- and Opportunity
Computer Industry Plugs in to Green
Green Chemicals Become Supercritical
Green Becomes an Engine of Growth
Be sure to read the full article on Greenbiz.com for the specifics of each story. It is pretty clear with the momentum currently behind Al Gore's An Inconvenient Truth that green will be even bigger in 2007.
