Oil Falls on Higher US Gasoline Stocks, Inflation
Filed at 11:51 p.m. ET
SEOUL (Reuters) – Oil prices fell toward $68 a barrel on Thursday, pressured by rising U.S. gasoline inventories and concern that high energy costs are leading to inflation that could slow demand.
U.S. light crude oil (CLc1) was trading 18 cents lower at $68.51 a barrel by 0311 GMT, extending Wednesday's 84-cent loss. London Brent crude (LCOc1) slipped 12 cents to $68.92.
“Rising U.S. gasoline stocks are providing the market with relief, easing some uncertainty over the supply of the motor fuel ahead of the driving season,'' said Koo Cha-kwon, head of global oil research at Korea National Oil Corp. (KNOC).
Gasoline futures (HUc1) in New York slipped further after leading losses on Wednesday, when U.S. government data showed domestic motor fuel stocks gained 1.3 million barrels last week on high imports, the third week of rises.
U.S. demand for crude and petroleum products in April fell by 1.5 percent from a year earlier, with high pump prices cutting gasoline use by 1.9 percent, industry figures showed on Wednesday.
“U.S. policies aimed at more use of alternative motor fuels like ethanol in the face of soaring gasoline prices are also behind weaker crude prices,'' Koo added.
U.S. Senate Democrats on Wednesday offered a plan to cut U.S. oil import dependence 40 percent by 2020 by requiring more use of alternative motor vehicle fuels like ethanol.
Prices were also pressured by U.S. data on Wednesday showing that the high cost of raw materials was pushing up the cost of living. Core consumer prices rose 0.3 percent in April, higher than expected and feeding inflation worries.
In the world's third largest oil consumer Japan, a Reuters poll showed on Thursday high oil prices are putting a squeeze on company profits, with firms still struggling to pass on greater energy costs to consumers and trying to find ways to save energy.
The less positive demand outlook led the Organization of the Petroleum Exporting Countries (OPEC) on Wednesday to trim its forecast for global oil demand growth in 2006 by 60,000 barrels per day, though the cartel said costly oil has failed to slow energy-hungry China's expanding fuel use.
OPEC has been pumping at near full tilt in a bid to calm prices but supply disruptions in Nigeria and worries over Iran's nuclear dispute with the West helped drive oil to a record above $75 in late April. Prices are still up 12 percent this year.
Iran's President Mahmoud Ahmadinejad on Wednesday rebuffed the latest attempt by the European Union to ease the dispute, which analysts fear could affect oil exports in the event of any potential sanctions against Tehran.
In Nigeria's oil heartland activists have given Royal Dutch Shell (RDSa.L) promising signals over a possible return to oilfields it was forced to abandon after a series of militant attacks three months ago. Shell has lost 455,000 bpd of production since February.
The leader of a militant group told Reuters on Wednesday he had held several meetings with Shell executives in recent days and had told them his community would allow the company back if it met key development demands.
Royal Dutch Shell conspired directly with Hitler, financed the Nazi Party, was anti-Semitic and sold out its own Dutch Jewish employees to the Nazis. Shell had a close relationship with the Nazis during and after the reign of Sir Henri Deterding, an ardent Nazi, and the founder and decades long leader of the Royal Dutch Shell Group. His burial ceremony, which had all the trappings of a state funeral, was held at his private estate in Mecklenburg, Germany. The spectacle (photographs below) included a funeral procession led by a horse drawn funeral hearse with senior Nazis officials and senior Royal Dutch Shell directors in attendance, Nazi salutes at the graveside, swastika banners on display and wreaths and personal tributes from Adolf Hitler and Reichsmarschall, Hermann Goring. Deterding was an honored associate and supporter of Hitler and a personal friend of Goring.
Deterding was the guest of Hitler during a four day summit meeting at Berchtesgaden. Sir Henri and Hitler both had ambitions on Russian oil fields. Only an honored personal guest would be rewarded with a private four day meeting at Hitler’s mountain top retreat.
IN JULY 2007, MR BILL CAMPBELL (ABOVE, A RETIRED GROUP AUDITOR OF SHELL INTERNATIONAL SENT AN EMAIL TO EVERY UK MP AND MEMBER OF THE HOUSE OF LORDS: 
MORE DETAILS:
A head-cut image of Alfred Donovan (now deceased) appears courtesy of The Wall Street Journal.
