Posted on 05/19/2008 6:50:36 AM PDT by thackney
LONDON (AFP) — Crude oil prices fell further from recent record highs on profit-taking Monday but analysts said fresh historic peaks were just around the corner amid supply disruptions and strong demand.
New York's main oil futures contract, light sweet crude for June delivery, fell 40 cents 125.89 dollars a barrel. On Friday it had reached an all-time high of 127.82 dollars.
London's Brent crude contract for June slid 95 cents to 124.04 dollars a barrel on Monday after spiking to a record summit of 126.34 dollars last Friday.
"We continue to see record highs posted on a daily basis as the bull run continues," MF Global senior energy broker Rob Laughlin said Monday. "It feels as though we're likely to see more of the same."
Amid rocketing prices, Saudi Arabia has boosted oil output by 300,000 barrels per day to meet demand and compensate for other producers' lower output, Saudi Oil Minister Ali al-Nuaimi said on Friday.
However US President George W. Bush said the hike would not solve American energy problems. Soaring prices of crude oil and petrol are adding inflationary pressures to an already weakening US economy.
Saudi Arabia, the world's biggest producer of crude, said that by June it would be producing 9.45 million barrels of oil per day.
Nuaimi reiterated OPEC's long-standing view that global oil supply was balanced with demand.
Saudi Arabia is kingpin within the 13-nation Organization of Petroleum Exporting Countries, which pumps 40 percent of the world's oil.
Last week, OPEC trimmed its 2008 estimate of world oil demand growth, citing higher prices and slower economic momentum in major industrialized countries including the United States.
Oil prices have risen by more than a quarter since the start of 2008, when they surged past 100 dollars a barrel for the first time.
Crude futures are being supported by supply disruptions in oil-producing nations, notably Nigeria, high demand for energy by China ahead of the Summer Olympics and a weak US currency which makes dollar-price oil cheaper for foreign buyers.
Goldman Sachs, the most active investment bank in energy markets, last week predicted that oil prices would jump to 141 dollars during the second half of 2008.
Feels like the country is spiraling seriously downward and people have been so deluded with socialism they'll just ride it down.
Thanks a load Nancy and Harry.
Oil has been what...$126 a barrel for 2 weeks. Why does gas still go up every other day?
Because it takes more than a day to turn crude oil into gasoline and deliver it to your local gas station, ready for pumping?
Democrat Presidential Candidate, Congresscritter, Senator or Activist,
Two weeks ago the talking point being put out by the Democrat party to the “News” media to explain the Democrats opposition to any development of the USA’s own energy resources was that “We cannot drill our way out of this problem”
This week the Democrat talking point is saying Democrats are to be credited for “forcing OPEC to increase production”
Since, as you Democrats just claimed, increased production of oil is the solution to high energy prices, why does you Democrats believe it is better for the USA to buy oil from OPEC rather then produce it ourselves?
Because of stupid US Govt policy.
At the same time demand for fuel goes up for the summer driving season (Think about it people not only drive more but start using lawn mowers, boats etc way more)the US and State Govts require the refiners to start producing 93 separate “Summer Blends” of gas. So at the same time demand is going way up, the US Govt puts a kink in the supply chain by demanding the Refineries lose all economies of scale in production and produce specialist fuel. Then, when the Summer season is over, the EPA regulations go off and the price drops dramatically. It is a simple “supply and demand” equation even a 1st year Econ student could grasp but seems wholly beyond either our “News” media or our Govt to grasp.
http://en.wikipedia.org/wiki/Supply_and_demand
Just more of the stupid US Govt policy of pushing “Conservation, not Consumption”
$4.17/gal in Mouth-O-Da_rat (Boca Raton) Florida.
Oh, well, I understand him now. Drilling for more oil will do nothing but not putting oil in the SPR so we can have more oil will help.
Got it.
I thought the same as soon as I heard that talking point. If we political "novices" can figure this stuff out so fast, surely the Republican "leadership" can. The republicans should be yelling that question from the rooftops and go on air with ads asking that question of the democrats. Instead we hear crickets chirping on this...
Energy Policy is the perfect wedge issue to separate the base Democrat working class voters from their Trust Fund baby party leadership so of course the current GOP leadership sits on their thumb letting their foes control the debate.
We will be lucky if we have 40 senators when this is all done.
The reporting seems to be somewhat unstable. NYMEX crude index 127.03
RBOB gasoline 3.24
fuel oil 3.69
that is why these threads need the time as well as the date included in the article
Here in NW Indiana prices dropped yesterday to $3.84/gal vs the $4.08/gal on Friday.
You in Kaliforneea with the .60/g state tax?
Nope, I’m in Northwest Indiana...about 5 miles from the second largest refinery in the USA (BP’s Whiting Refinery).
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