tex Posted April 2, 2005 Share Posted April 2, 2005 UPDATE: 8/2/05 ~~~~~~~~~~~~~~~~~~~~~~~~~ At the current price $100 oil is only $38.43 away. http://reuters.myway.com/article/20050801/2005-08-01T210012Z_01_L01130538_RTRIDST_0_NEWS-MARKETS-OIL-DC.html Oil hits record as Saudi king dies Aug 1, 5:00 PM (ET) By Timothy Gardner NEW YORK (Reuters) - Oil prices shot to a record above $62 a barrel on Monday as the death of Saudi Arabia's King Fahd, U.S. refinery outages and tensions over Iran's nuclear ambitions rattled the market. U.S. light, sweet crude rose $1.73 to a record $62.30 a barrel before settling up $1, or 1.7 percent, at $61.57 on the New York Mercantile Exchange. The previous record, hit July 7, was $62.10. When adjusted for inflation, oil briefly traded near $90 a barrel in the early 1980s. In London, Brent crude rose $1.07 to $60.44 on the International Petroleum Exchange. Oil has climbed about 40 percent this year, with the Organization of Petroleum Exporting Countries struggling to meet demand by producing at 25-year highs. ~~~~~~~~~~~~~~~~~~~~~~~~ http://news.yahoo.com/news?tmpl=story&u=/afp/20050401/bs_afp/commoditiesenergyoil_050401231928 NEW YORK (AFP) - Oil prices soared to fresh all-time highs, underpinned by worries about US refining capacity and building on gains caused by a study raising the possibility of 100-dollar per barrel oil. New York's main contract, light sweet crude for delivery in May, jumped to an all-time closing high of 57.25 dollars a barrel, up 1.87 from Thursday's close. Prices hit an all-time intraday high of 57.70 dollars in afternoon trade on the New York Mercantile Exchange. London's Brent North Sea crude oil for delivery in May surged 2.22 dollars to a new record high of 56.51 dollars a barrel, topping the March 17 record of 56.15 dollars. Oil prices, underpinned in recent days by worries about a lack of US refining capacity and a Goldman Sachs study that forecast crude could top 100 dollars per barrel, got a further lift from news of a shutdown at Venezuela's Paraguana refinery, the largest in the world, due to electrical problems. "The market is particularly sensitive to supply disruptions," said Marshall Steeves, analyst at Refco. But he added that the rally is also being pumped up by "very strong speculation" that amplifies price movements. A jump in gasoline prices, which hit a record 1.731 dollars a gallon in futures trading, also put pressure on the overall market. "The market is being pushed up by very, very strong (refined) product markets," Barclays Capital analyst Kevin Norrish said. "There are real concerns about product availability, that's what is underpinning the strength of the market at the moment." Despite the fact that the United States has rising levels of crude stockpiles, there are fears that refineries will be unable to turn it into gasoline quickly enough ahead of the country's so-called "summer driving season" that begins next month. "The lack of refining capacities is ultimately the bottom line," Norrish added. Highlighting the refinery problems, analysts at the Sucden brokerage firm noted that US oil major ChevronTexaco was forced to shut the crude distillation unit at its 210,000-barrels per day Pembroke refinery in Wales last Friday. "The refinery is a major exporter of gasoline to the United States," they said. Jason Schenker at Wachovia Securities said the high profits in gasoline bring in speculators who can cash in from buying crude oil. But he said another factor was the Goldman Sachs report on Thursday, which raised the possibility of a "superspike" in crude oil to as high as 105 dollars a barrel. Schenker dismissed the projection as unlikely, saying, "It is possible to reach 105 dollars a barrel, but in my opinion it would take a cataclysmic terrorism attack on infrastructure to get there. I don't think we will trend up to 105." As a result, Schenker said, the rally could be vulnerable to a correction. "If this rally is driven by a published article (from Goldman Sachs) and some irrational exuberance we might anticipation some downside next week," he said. Oil prices were being supported also by supply worries ahead of a likely strike by energy workers in Nigeria, Africa's biggest exporter of crude. Nigerian oil unions said Wednesday that it would take a miracle to avert a nationwide strike as talks with government and energy majors on working conditions broke down. A three-day "warning strike" was due to begin April 11. World oil prices have now more than doubled since early 2002. Adjusted for inflation, however, they remain far below levels reached in the wake of the 1979 Iranian revolution when prices surged to upwards of 80 dollars a barrel in today's money. Link to comment Share on other sites More sharing options...
tex Posted April 4, 2005 Author Share Posted April 4, 2005 http://news.yahoo.com/news?tmpl=story&u=/nm/20050404/bs_nm/markets_oil_dc_3 MELBOURNE (Reuters) - Oil prices raced to a new all-time peak on Monday, climbing toward $58 a barrel as OPEC signaled it would discuss a second output rise to try to quell the market's relentless rally. U.S. light crude hit a record $57.79 a barrel, surpassing Friday's high of $57.70, which was triggered by a forecast that prices could spike above $100 due to robust global demand and tight spare capacity. At 10:33 p.m. EDT Sunday, U.S. crude was up 31 cents at $57.58, while London's Brent crude struck an all-time peak at $56.80 a barrel, marking a gain of 29 cents. "I would have thought prices would struggle to go much higher. The market fundamentals suggest lower prices," said Mark Pervan, an analyst with Daiwa Securities in Melbourne. "I think they will struggle to get over $60 in the next couple of weeks -- that is a big psychological barrier." OPEC President Sheikh Amhad al-Fahd al-Sabah said on Saturday he would likely start consulting member producers on Sunday over a 500,000 barrel-per-day (bpd) increase to group supplies to cool the market. The Organization of the Petroleum Exporting Countries lifted output limits by 500,000 bpd to 27.5 million bpd in mid-March and left room for a second rise before a June ministerial meeting if prices failed to ease below $55. "We had suspended (consultations) for a period of time because of the decline in prices," Sheikh Ahmad said. "But now, the reality of prices requires that we once again undertake communications for the purpose of consultations with the fellow OPEC oil ministers ... pertaining to the 500,000-bpd hike." Nigerian Presidential Adviser on Petroleum Edmund Daukoru said on Sunday the increase could happen within two weeks if prices stayed above $55 for at least the next 10 to 14 days. U.S. oil prices have surged 33 percent this year, with big-money speculative funds buying heavily on signs that rapid demand growth in Asia's emerging economies and the United States would strain world supply. Prices have gained more than $3 since Thursday when top energy derivatives trader Goldman Sachs (NYSE:GS - news) released a report saying oil markets might have entered a "super-spike" period which could eventually drive them toward $105. Concerns about the adequacy of U.S. gasoline stocks ahead of the peak summer demand season were also partly behind last week's price jump after a handful of refiners had production problems. U.S. gasoline futures struck a new all-time high on Monday at $1.7380 a gallon, an increase of 0.007 cents. Link to comment Share on other sites More sharing options...
portisizzle Posted April 4, 2005 Share Posted April 4, 2005 The environmentalists won, by not allowing the U.S. to create new refineries for decades. Now it is biting us in the ass. Suprise,suprise. If liberals could only see beyond their nose... Link to comment Share on other sites More sharing options...
@DCGoldPants Posted April 4, 2005 Share Posted April 4, 2005 it only took 3 posts for somebody to blame Liberals on this. Well done. Link to comment Share on other sites More sharing options...
portisizzle Posted April 4, 2005 Share Posted April 4, 2005 Bufford, am I wrong? Link to comment Share on other sites More sharing options...
Kilmer17 Posted April 4, 2005 Share Posted April 4, 2005 Higher baby. Go higher!!!! Link to comment Share on other sites More sharing options...
gridironmike Posted April 4, 2005 Share Posted April 4, 2005 Well, this is really worrisome if you ask me. The price of that liquid gold drives the price of everything in our economy. Link to comment Share on other sites More sharing options...
gbear Posted April 4, 2005 Share Posted April 4, 2005 On the raio this morning (WTOP), they had an expert saying they thought gas prices would hit $4 a gallon in the next two years. I can't say I think they are wrong either. Makes me really hesistant to get another car that doesn't continue my current 40 mile to the gallon mileage. Link to comment Share on other sites More sharing options...
portisizzle Posted April 4, 2005 Share Posted April 4, 2005 Originally posted by Kilmer17 Higher baby. Go higher!!!! :2cents: for your thoughts?:whoknows: Link to comment Share on other sites More sharing options...
@DCGoldPants Posted April 4, 2005 Share Posted April 4, 2005 Originally posted by portisizzle Bufford, am I wrong? anything to get people to think beyond oil is a good thing. Even if the current prices are high. So, while you might be right...I'd be proud if I had gotten people to start taking closer looks at Hybrids and Full Cells. It eventually needs to happen, no matter how bad the fat piggys in DC don't want it to. :2cents: Link to comment Share on other sites More sharing options...
The Evil Genius Posted April 4, 2005 Share Posted April 4, 2005 Yep, that's the answer to high crude oil prices - more refineries. Link to comment Share on other sites More sharing options...
Kilmer17 Posted April 4, 2005 Share Posted April 4, 2005 Necissity is the mother of invention. Link to comment Share on other sites More sharing options...
gbear Posted April 4, 2005 Share Posted April 4, 2005 Going higher is the only way we will get more fuel efficient cars or alternatively fueled cars. That being said, our economy will suffer big time outside of the fuel pump. We see it at the gas station, but a lack of cheap oil will hurt us economy wide. We'll say darn that plastic got expensive and not think that it is the fuel used to make it. We'll say darn that milk was expensive not thinking about the costs of getting it to us or the plastic container it comes in. ect. As much as we mock Europe, it may be time to start taking a look at some of the things they do to produce energy and encourage mass transit. It's all expensive up front, but they are better positioned to deal with a huge upswing in oil prices than we are (at least on the face of it without much research). Link to comment Share on other sites More sharing options...
Henry Posted April 4, 2005 Share Posted April 4, 2005 Originally posted by Kilmer17 Necissity is the mother of invention. Or more strip-mining. Take your pick. Link to comment Share on other sites More sharing options...
The Evil Genius Posted April 4, 2005 Share Posted April 4, 2005 Did anyone see the graph last week that shows American's are paying almost 1/2 the yearly cost on gas as they were 30 years ago? Link to comment Share on other sites More sharing options...
Kilmer17 Posted April 4, 2005 Share Posted April 4, 2005 Gas is cheap. It will have to hit 80 a barrell to catch up with the cost of inflation. Link to comment Share on other sites More sharing options...
tex Posted August 2, 2005 Author Share Posted August 2, 2005 The cost keeps going up. Now $61.57 a barrel. Link to comment Share on other sites More sharing options...
twa Posted August 2, 2005 Share Posted August 2, 2005 Originally posted by Kilmer17 Gas is cheap. It will have to hit 80 a barrell to catch up with the cost of inflation. Correct and the higher prices will promote conservation and alternatives. For the younger ones try imagining waiting in line two hours for gas or rationing. A simple price hike is nothing to sweat. Link to comment Share on other sites More sharing options...
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