Oil Briefly Spikes Above $92 a Barrel

This ain't good at all.

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Friday October 26, 7:35 am ET
By Thomas Hogue, AP Business Writer
Oil Briefly Spikes Above $92 a Barrel on Mideast Tensions, Supply Worries BANGKOK, Thailand (AP) -- Crude oil prices spiked above $92 in Asia Friday on growing tensions in the Middle East and renewed concern about oil supplies.The United States announced new sanctions against Iran Thursday, targeting the elite Revolutionary Guards, which Washington accused of backing Shiite militants in Iraq. A confrontation between the world's largest oil consumer and its fourth largest oil producer could upend markets.

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Friday October 26, 7:35 am ET

More from AP on this :-

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On Thursday, Organization of Petroleum Exporting Countries Secretary General Abdalla el-Badri told The Wall Street Journal Asia the cartel is not in discussions to boost production by 500,000 barrels. The comments counter rumors that Saudi Arabia is pushing for another production increase after pressuring the group into one of similar size that goes into effect Nov. 1.

While U.S. crude stocks fell to a nine-month low last week, Dow Jones reported that Oil Movements, a company that tracks oil tanker traffic, said the extra crude shipments from OPEC members next month will grow more slowly than anticipated.

Energy traders also remain concerned a threatened incursion by Turkish armed forces into Iraq in search of Kurdish rebels would cut oil supplies out of northern Iraq. Turkey has warned it will decide whether to cross into Iraq in pursuit of Kurdish guerrillas regardless of U.S. objections, and U.S.-made Turkish fighter jets patrol the skies near the Iraqi border.

Turkish artillery has been periodically firing across the border, and Turkish television showed video of smoke rising from three villages in northern Iraq that were purportedly hit by shells Thursday.

Lebanese troops fired on Israeli warplanes Thursday, and while a conflict between Israel and Lebanon would not directly affect oil supplies, traders worry that any hostilities in the Middle East would draw in oil producers such as Saudi Arabia and Iran.

On Friday, gunmen in speedboats attacked an oil vessel off the coast of Nigeria at dawn and kidnapped six workers, Italian energy giant Eni SpA said.

Traders were also watching storms form near the Gulf of Mexico, where there are major oil operations.

''In this edgy market, we would still point to a tropical disturbance over the Virgin Islands which has ... some potential to become a Tropical Depression and could veer toward the (Gulf),'' said Olivier Jakob from Switzerland's Petromatrix. ''We would not qualify it yet as a threat to oil assets but ... we will pay attention to any upgrade on that disturbance.''

Nymex heating oil futures rose 1.36 cents to $2.4220 a gallon (3.8 liters) while gasoline prices added 0.72 cents to $2.2430 a gallon. November natural gas futures fell 1.6 cents to $7.172 per 1,000 cubic feet.

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Regards

^ time to sell the honda wave and buy a tesco 12 speed.

Well, since the US$ is going down the drain, it is not such a big increase for most nations...

^ Yes, it is. Oil is largely dollar denominated, so the cost of all those cheap Chinese barbies we buy for our daughters will also increase. Everyone gets hurt worldwide.

What is of underlying structural interest here, is the increased pressure from oil producers to consider denominating in Euro. It was rumoured that after a French bank entered into substantive negotiations with Libya, only then did the US move forward with a programme focused on brining the country 'back into the international community'.

Regards

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Originally Posted by chinthee

This ain't good at all.

Friday October 26, 7:35 am ET
By Thomas Hogue, AP Business Writer
Oil Briefly Spikes Above $92 a Barrel on Mideast Tensions, Supply Worries BANGKOK, Thailand (AP) -- Crude oil prices spiked above $92 in Asia Friday on growing tensions in the Middle East and renewed concern about oil supplies.

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$92 USD per barrel is no surprise. It's been long predicted. $100 USD per barrel has been long predicted.

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The United States announced new sanctions against Iran Thursday, targeting the elite Revolutionary Guards, which Washington accused of backing Shiite militants in Iraq. A confrontation between the world's largest oil consumer and its fourth largest oil producer could upend markets.
Friday October 26, 7:35 am ET

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How interesting: The U.S. is supporting a Shiite government in Iraq for 4.5 years. And....gasp....they accuse Iran of supporting....Shiite militants in Iraq? They are supporting the same side.

And Iran is just waiting for the U.S. to reduce it's military influence and what little military influence it has in Iraq.

Time is on Iran's side. Everybody knows this.


Ahmadinejad dumped the dollar and went to the Euro. Just like Saddam Hussein previously did in the year 2000. But Iran is not Iraq. And Iran has thousands of Shihab-3 missiles.

If the U.S. does anything, there will be massive retaliation against the 14 U.S. military bases in Iraq and Israel.

Not a good idea.

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Originally Posted by A Traveller

What is of underlying structural interest here, is the increased pressure from oil producers to consider denominating in Euro. It was rumoured that after a French bank entered into substantive negotiations with Libya, only then did the US move forward with a programme focused on brining the country 'back into the international community'.

Regards

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The bargaining of certain oil producing countries has thrown the U.s into a spin, I haven't heard of the Libya interest, but do understand the reason why it might have kick started the U.S into negotiations.

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Originally Posted by Milkman

Ahmadinejad dumped the dollar and went to the Euro. Just like Saddam Hussein previously did in the year 2000.

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I believe that the main reason for the invasion was this jump from the Dollar to the Euro and now similarly, Iran are getting the sanctions.

Invasion, I doubt it, but it is not good.

M

Oil hits $100 on supply concerns, Nigeria violence
By Moming Zhou & Polya Lesova, MarketWatch
Last update: 1:11 p.m. EST Jan. 2, 2008


SAN FRANCISCO (MarketWatch) -- Crude-oil futures surged more than $4 a barrel and hit $100 on Wednesday on expectations U.S. crude inventories fell for a seventh consecutive week and on concerns violence in Nigeria may cut output from Africa's biggest oil producer.

Crude for February delivery rallied $4.02 to $100 a barrel on the New York Mercantile Exchange in early afternoon trading. It was last up $3.52, or 3.7%, at $99.5 a barrel.

snip

marketwatch.com

^ What makes the above all the more scary is that there were no oil production threatening hurricanes in the Gulf of Mexico this year, which normally add 5-10% on the oil price for the affected period.

$100 USD per barrel is no surprise (as I stated above) and it won't necessarily cause much harm to the overall US economy - unless - these prices erode some of the consumer spending.

from a US forum :)

Today, 10:11 PM

https://teakdoor.com/images/imported/2008/02/552.jpg
Don't know if this belongs here, but the Alon refinery in Big Spring, Texas, Israeli owned, just had a huge explosion, I felt it 45 miles away, and can see a mushroom cloud from my office.

no proof yet ......................

star telegram
QUOTE
Posted on Mon, Feb. 18, 2008
Explosion rocks West Texas refinery
The Associated Press
BIG SPRING, Texas -- An explosion rocked an oil refinery Monday morning, a Howard County sheriff's dispatcher said.

It was unclear whether there were injuries or whether a fire was burning at the refinery owned by Dallas-based Alon USA, which employs about 170 people and produces about 70,000 barrels a day.

"All I know is that it blew up," said the dispatcher, who declined to give her name.

John Moseley, managing editor of the Big Spring Herald, heard the blast and said, "I thought it would knock the walls down."

Blake Lewis, a spokesman for Alon USA, said the company had an unconfirmed report of an incident but did not know any details. He said a plant manager was on the way to the plant.

Big Spring is about 280 miles west of Dallas.

^ KWES NewsWest 9 / Midland, Odessa, Big Spring, TX: newswest9.com | Explosion Reported at Big Spring Refinery

I felt it 45 miles away, and can see a mushroom cloud from my office.


https://teakdoor.com/images/imported/2008/02/553.jpg

that be proof .

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Originally Posted by Mid

I felt it 45 miles away, and can see a mushroom cloud from my office.


https://teakdoor.com/images/imported/2008/02/553.jpg

that be proof .

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A link would help, on this pic, just to make sure.

Here is the home site of Alon USA. It is Israeli owned.

Because of the size make of the explosion, yes some of us are thinking this was intentional.

This company is also publicly traded.

I wonder if there was any shorting of ALONON USA's stock in recent days?

Home site: ALON USA >> Welcome

sorry no link on the pic , camera phone of the poster I quoted orignally .

Oil above $104 - new record!

Oil breaks all-time record, nears $104 on falling dollar - Mar. 3, 2008

NEW YORK (CNNMoney.com) -- Oil reached a historic high near $104 a barrel Monday, surpassing the inflation-adjusted level of the 1980s, as a weakening dollar made crude futures attractive to investors.
U.S. crude for April delivery hit $103.95 a barrel in early trading before easing to trade at $103.61 on the New York Mercantile Exchange, still up $1.77 on the session.

Crude has now passed what many analysts consider to be the previous record high - $103.76 when adjusted for inflation, set in early 1980 - following the Iranian Revolution.

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Originally Posted by Mid

https://teakdoor.com/images/imported/2008/02/553.jpg

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Sort of sums up the state of fossil fuels right now, as well as the price direction of "$92 a barrel" oil....

Oil prices spike to record $105.97

By PABLO GORONDI, Associated Press Writer 53 minutes ago

Oil prices steadied Thursday after nearing a record $106 a barrel as investors reacted to a surprise drop in U.S. crude supplies and the dollar struck new lows against the euro.

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Earlier this week, oil prices broke the previous inflation-adjusted price record of $103.76, set in 1980 during the Iran hostage crisis.

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The dollar, meanwhile, fell to a new low against the euro, with the EU's shared currency climbing to $1.5370 after the European Central Bank and the Bank of England left their benchmark interest rates unchanged. The euro set its previous high mark of $1.5302 on Wednesday.

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Oil prices spike to record $105.97 - Yahoo! News

CT, what do you think this means for the medium term?

Median gas/petrol prices in the USA will go up?

It will affect consumer spending.

No problem, by me. But it might affect consumer spending and confidence.

MM, I get the O&G Journal Daily and they haven't made any medium term predictions. But the trend has definitely been up generally, and obviously now we're at record levels.

I personally think at this point it should put a big chill on gas-guzzling truck, SUV, and car sales, which would have a big knock-on effect on the economy.

In addition, we may see belt-tightening by consumers for the coming summer tourism season in the USA, which could be a big blow if it results in lower tourism.

At the same time, I see airfare increases, as well as fuel surcharges, which we've seen in Thailand and Asia, and should continue.

There's nothing good in all this.

Oil Prices Steady above US $107 a Barrel
Tuesday, March 11, 2008
By THE ASSOCIATED PRESS


Oil prices are holding steady above US $107 a barrel in Asian trading after rising to a record overnight on the further weakening of the US dollar.

Midmorning Tuesday in Singapore, light, sweet crude for April delivery was down 21 cents to $107.69 a barrel in electronic trading on the New York Mercantile Exchange.

On Monday, crude futures rose $2.75 to settle at a record $107.90 a barrel after reaching an all-time trading high of $108.21 earlier in the session.

snip

irrawaddy.org

Petrol will be going up then.

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Originally Posted by Redneck

Petrol will be going up then.

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Yes, and it's getting worse by the hour. I'm watching CNN, and they just reported Nynex Crude is trading at $110/bbl.. Not sure where this will end today, but it's getting very serious now I think.

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Originally Posted by chinthee

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Originally Posted by Redneck

Petrol will be going up then.

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Yes, and it's getting worse by the hour. I'm watching CNN, and they just reported Nynex Crude is trading at $110/bbl.. Not sure where this will end today, but it's getting very serious now I think.

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I check the gas/petrol prices in my hometown everyday, just out of curiosity.

GasBuddy.com - Find Low Gas Prices in the USA and Canada

Then type in the zip, or name of city.

Interesting. Avg. now is abut $3.50 per gallon where I'm from.

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Originally Posted by chinthee

it's getting very serious now I think

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I wonder what the cost analysis is on the economy for every dollar above $110? There must be an economic tipping point somewhere.

Heard the latest price rise was due to speculation rather than supply, so perhaps the high price will perpetuate itself.

Oil crosses $110, despite supply rise


NEW YORK (CNNMoney.com) -- Oil prices rebounded to another record high Wednesday afternoon after initially plummeting when a government report said supplies of crude and gasoline had risen much more than expected.

Oil prices hit record even after big climb in crude supplies - Mar. 12, 2008

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Originally Posted by chinthee

Oil crosses $110, despite supply rise


NEW YORK (CNNMoney.com) -- Oil prices rebounded to another record high Wednesday afternoon after initially plummeting when a government report said supplies of crude and gasoline had risen much more than expected.

Oil prices hit record even after big climb in crude supplies - Mar. 12, 2008

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I've been reading the reports from analysts.

I suppose (from what I read) that people don't agree on how high oil may, or may not go.

Do you think that these will remain above $100 for a prolonged period?

(Chinese demand and other demand around the world.)

Gas/Petrol is hitting $4 in a few places in the U.S. In my hometown some places are at $3.63.

^Most of the current price rise is because of speculation in the market from what I've read. However, never take speculation lightly. It can likely result in new psychological barriers being crashed. For example, we had $20 oil for a long time, and it wasn't that long ago. We crashed that barrier. We crashed the $40 barrier. We crashed a hundred. And, we may now crash the $110 barrier. Where this stops nobody knows....

^Rumours persist of proven reserve levels in Saudi, which have never been independantly audited. These rumours were compounded by the Saudis leading the recent OPEC decision not to increase production despite record prices...

It does not need stating what effect even a small reduction in Saudi output would have on prices...

^Yeah, and it smacks of conspiracy by OPEC and the Russians doesn't it? Kind of like all the years of rumors that de Beers was hiding diamonds to artificially keep prices higher.

^Or they could be true, I don't know which scenario is scarier...

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Originally Posted by chinthee

^Yeah, and it smacks of conspiracy by OPEC and the Russians doesn't it? Kind of like all the years of rumors that de Beers was hiding diamonds to artificially keep prices higher.

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Can you elaborate for us neophytes?

TIA.

Record gas (petrol) prices push energy spending to near 1980s levels

Tuesday March 11, 2:04 pm ET
By Steve Hargreaves, CNNMoney.com staff writer So gasoline prices are at an all-time high. But after adjusting for inflation, rising incomes and better fuel efficiency, how bad are they really?The experts' answer: Bad. Nearly as bad as they've ever been, and not likely to get better anytime soon.

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And some people, usually Europeans, like to point out that gasoline is still far cheaper in the United States than it is in Europe, where it can cost upwards of $8 a gallon.
Others argue that's it's not fair to compare the United States and Europe, as Europe's high prices are largely due to taxes, which are then used to fund public benefits such as mass transit or cheaper health care.

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For each penny increase in the cost of gas, U.S. consumers pay an extra billion dollars a year, said Dean Baker, assistant director at the Center for Economic and Policy Research. So to go to $3.22 a gallon from $1.74 a gallon in March 2004 is costing an extra $148 billion dollars this year alone.
"There's definitely a hit," said Baker. "It doesn't explain the recession, but it certainly adds to it."
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