Oil Extends Record Run, Brent Over $50

MSN Investor--Reuters ^ | 10/10/04 | Andrew Mitchell

[carl in alaska]

LONDON (Reuters) - Oil prices hit fresh records again on Monday, pushing London Brent crude above $50 for the first time and extending a relentless rise that has added around 65 percent to the cost of crude this year.

Brent (LCOc1) on London's International Petroleum Exchange, the benchmark for European imports of Middle Eastern, Russian and African crude hit $50.22 a barrel, up 51 cents on the day and $20 higher than at the start of the year.

U.S. light crude (CLc1) hit a new high of $53.63 a barrel, up 30 cents.

China has led rapid growth in world oil demand this year, eroding spare production capacity in OPEC nations and leaving the global market a tiny supply margin to cope with disruptions.

Saudi Oil Minister Ali al-Naimi said price levels were unjustified and should come down after November's U.S. presidential elections.

``There is no justification for it to be where it is. This is a political year and this may have some influence,'' he said.

Naimi reiterated that top world exporter Saudi Arabia could pump an extra 1.5 million barrels per day if required. Oil traders say that extra supplies of the kingdom's high-sulfur crude can do little to help.

---- snip ----

[carl in alaska]

The key comment here is where the Saudi Oil Minster says "There is no justification for it to be where it is. This is a political year and this may have some influence." I would bet that a few extremely wealthy Democrats, Communist China, and pro-Kerry speculators throughout the world have been buying oil futures to drive up gasoline prices ahead of the November election. If this is true, we should see oil prices decline sharply and suddenly beginning around October 25. At that point futures prices shouldn't have much effect on gas prices in the last week before the election. The retail gas prices will already be set based on earlier commodity prices. It's time for the Bush Administration to release oil from the SPR to cool off this market and hose down these speculators. There's ample justification for a release from the SPR because of lost production from Hurricane Ivan. They can call it a loan to refiners to be returned to the SPR in November and December. This is economic warfare and it's time to fight back.

[2banana]

Sell oil short!!!!

[halley]

Wonder what George Soros is trading these days?

[NeoCaveman]

I can't prove it, but I suspect George Soros is behind this.

[Gorzaloon]

It's time for the Bush Administration to release oil from the SPR to cool off this market and hose down these speculators.

Soros ..?

[Samwise]

If you want to understand the differences between the two major parties, study the nature of their enemies.

[Lockbox]

Don't forget Marc Rich.

[marty60]

Or maybe Oscar Wyatt or his son, maybe all . Soros has the bucks, Wyatt's have all that Iraqi Saddamn money. Interestingly, if you have millions in oil vouchers and do mot sell them are you tying up oil availablity.

[Moconservative]

That was my thought too! Soros is a manipulator of currency why not the oil market.

[magua]

Who has the most to gain?

[Gibtx]

very interesting ..... this of course will have finger prints all over the transactions........ so we will have to dig deeply ..... to find the truth..... the obvious will be wrong....

[ClintonBeGone]

It's getting a little late for price manipulation. Come on King Saude, lets roll!

[meyer]

Soros won't do it directly - he'll pay others to do the dirty work. Look for financial transactions through back channels.

And the hurricanes this year make the task a little easier, as production suffered a few days' lapse in the Gulf area.

[carl in alaska]

Can you put in parentheses after the title: (Saudi Oil Minister Hints at Maninpulation)? I don't know if that's allowed at FR or not. That's the really important item in this article. Otherwise it's a fairly routine story on the oil markets.

[aardvark1]

this reminds me of gold at $800 per ounce in the 70s. It still hasn't recovered from the manipulation.

[biblewonk]

There are some seriously well healed oil companies out there. Not that I begrudge them that.

[gumboyaya]

Tulips anyone!

[Alberta's Child]

No need to release any oil from the SPR.

You heard it here first . . .

The "October Surprise" this year will be a proposal by President Bush -- then quickly passed by the GOP Congress -- to eliminate the Federal tax on motor fuels until the price of oil stabilizes.

[defenderSD]

Now THAT would be a surpise. Any particular reason why you think this will happen? A big gas tax cut might appear just a little too brazenly political, whereas a release from the SPR is a quieter way to bring down gas prices. I don't know what's going to happen, but Bush needs to do something now to stop this upward spike in gas prices.