Posted on 08/28/2005 4:26:56 PM PDT by lauriehelds
SINGAPORE, Aug 29 (Reuters) - U.S. crude oil futures surged more than $4 in opening trade on Monday, hitting a new record high above $70 a barrel after Hurricane Katrina forced Gulf of Mexico producers to shut in more than a third of their output.
Katrina, which strengthened into a rare, maximum power Category 5 hurricane as it spun through key oil and gas fields toward New Orleans, shut in a total 633,000 barrels per day
(bpd), according to company figures on Sunday.
It also forced the closure of seven refineries and a major U.S. crude import terminal.
Crude oil futures on the New York Mercantile Exchange
(NYMEX) surged as high as $70.80 a barrel, up $4.67 a barrel, as traders feared lasting damage could further strain an industry that has struggled to keep up with demand for two years.
Ouch!
Here we go. Strap in, it's going to be a wild ride.
Exxon Mobil and all the other oil companies will make million$
hopefully this'll be the blowoff.
Explain?
In Seattle here, I will be filling up 2 cars at 4am,this sucks........
What do you mean?
Will President Bush be releasing oil from the Strategic Petroleum Reserve to account for these supply disruptions?
Don't forget the state and federal governments and their taxes on petrol.
Hate to use the word but these excessive profits are starting to make the nationalization of the energy industry a possibility . Seems like with production and supplies at peak levels ,there is no reason for these high prices . Plain and simple they are raping our walets.
Wild ride??
I heard today that (natural gas) heating bills may increase approximately 40% higher than last year.
Jesus, Mary and Joseph. We just might see 1/3 higher costs yet, you know that?
Time for some bed warmers.......
the good news is that crude inventories are 31m barrels higher YR/YR. Bad news is inventories will drop about 10-15m barrels due to the storm.
it is likely for the next few weeks that production from the gulf will be siginificantly below potential driving prices to about $75-80 within 2 weeks.
The american people have got to get it into their heads that they have to reduce their consumption. A simple 10% reduction in driving would save 1.4 million barrels daily.
This is getting f***ing absurd.
""Hate to use the word but these excessive profits are starting to make the nationalization of the energy industry a possibility."'
it wont..youre saying the govt will own and operate all the oil companies...never happen
It is possible that the reserves will be used to alleviate some of this.
well drive less.
I have cut back my driving so much that I am actually spending less per week on gasoline than i was 2-3 months ago.
Thankfully I had foresight and bought a Honda 3 years ago.
Has anyone asked the question, "WHY should the price of crude oil go UP just because a few locations shut down??" We are talking about the price of crude here...WHY? other than just plain old greed and just another "excuse" to raise oil company profit...
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