Yes - but the really good news is that after the recent BP mess in Alaska - which caused oil prices to rise - today they are falling on reduced demand of jet fuel. It sure is convenient.
http://www.chron.com/disp/story.mpl/ap/fn/4107689.html
Oil Prices Drop Almost $1 a Barrel
LONDON — Crude oil prices fell nearly $1 a barrel Thursday when thwarted attacks on airplanes led many carriers to cancel flights, which could mean lower demand for jet fuel and dented consumer confidence.
Light, sweet crude for September delivery dropped 98 cents to $75.37 a barrel in electronic trading on the New York Mercantile Exchange by midday in Europe. September Brent crude futures on London's ICE Futures fell 99 cents to $76.29 a barrel.
"The price fall this morning is on the back of the airline bomb plot which is negative jet demand and consumer confidence," said Olivier Jakob at Petromatrix.
On Thursday, British authorities said they had stopped a terrorist plot to blow up several aircraft in flight between the United States and the United Kingdom.
European carriers canceled flights to Britain, where airports were experiencing massive delays. There were delays in the U.S., too, as passengers endured long waits because of the heightened security.
Gasoline futures dropped more than 5 cents to $2.1170 a gallon, while heating oil futures fell 3 cents to $2.0750 a gallon. Natural gas futures gained 15 cents to $7.806 per 1,000 cubic feet.
But traders felt that because the attack was foiled, it would mute the effect on prices. The underlying sentiment is for higher prices focused on lower gasoline inventories, geopolitical worries and production cuts from a pipeline shutdown in Alaska and unrest in Nigeria.
In Nigeria, officials said gunmen seized two foreign oil workers Thursday in the surge of violence targeting the petroleum industry in Africa's oil giant.
Southern Nigeria, where most of the nation's crude is pumped, has seen violence against the petroleum industry rising. The kidnappings and attacks have forced a nearly 20 percent reduction of Nigeria's usual 2.5 million barrel daily production.
Prices also continue to be inflated by the standoff between the United Nations and Iran over the nuclear program of the No. 2 oil producer in OPEC, as well as fighting in the Middle East between Israel and Hezbollah, which threatens to disrupt production in the region.
On Wednesday the U.S. government reported drops in crude, gasoline and distillate fuel inventories _ aggravating concerns about a supply shortage from the shutdown of a major pipeline in Alaska.
U.S. crude inventories fell 1.1 million barrels to 332.6 million barrels last week, the Energy Information Administration said, still more than 4 percent above year-ago levels.
Gasoline inventories fell 3.2 million barrels to 207.7 million barrels _ less than 1 percent above last year's levels, and in the lower half of the average range for this time of year.
BP PLC is shutting down 400,000 barrels of daily oil production _ about two-thirds of which belongs to ConocoPhillips and Exxon Mobil Corp. _ at Prudhoe Bay in Alaska.
U.S. crude inventories are near five-year highs, but the Organization of Petroleum Exporting Countries' spare capacity is tight _ about 1.1 million to 1.3 million barrels a day, mostly in Saudi Arabia, the EIA estimated Tuesday.
U.S. Energy Secretary Samuel Bodman had said extra supplies can replace oil lost from the Alaska shutdown, and that a complete shutdown might not be necessary.