Oil Prices Plunge More Than $3 a Barrel

From Forbes Magazine bq. Oil prices plunged more than $3 a barrel Wednesday on the heels of a sharp decline in heating oil futures after the U.S. government reported large increases in the nation's fuel supply less than three weeks before the start of winter. bq. Light, sweet crude for January delivery fell $3.33 to $45.80 per barrel in afternoon trading on the New York Mercantile Exchange. And more: bq. The Energy Department reported that U.S. crude oil inventories grew by 900,000 barrels last week to 293.3 million barrels, or nearly 10 million barrels higher than a year ago. These inventories are part of this Federal program: Strategic Petroleum Reserve During Clinton's administration, President Bill drained these reserves to keep gasoline prices artificially low. President Bush has been quietly refilling them so gas prices are a bit high for now. From this page on the site: bq. But due largely to rising federal deficits, the Clinton Administration in 1994 suspended the purchase crude oil on the open market. Oil imports to the United States continued to increase, however, and the protection offered by the Reserve -- then with an inventory of less than 600 million barrels -- steadily declined. President Bush's announcement from the White House: bq. President Orders Strategic Petroleum Reserve Filled The Strategic Petroleum Reserve (SPR) is an important element of our Nation's energy security. To maximize long-term protection against oil supply disruptions, I am directing today the Secretary of Energy to fill the SPR up to its 700 million barrel capacity. Good to see that it's having its intended effect...