Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

U.S. oil surges $4, to record above $70, on hurricane
reuters.com ^ | 28 August 2005

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.


TOPICS: Business/Economy; Front Page News; News/Current Events
KEYWORDS: brent; capacity; cartel; crude; crudeoil; energyprices; exploitation; funds; gas; gasoline; hedgefunds; hurricanekatrina; idiotsaboundhere; ipe; iran; katrina; lightsweetcrude; middleeast; northsea; nymex; oil; oilcartel; oilindustrylies; oilinventory; oilrefineries; oilrefinery; opec; pricecapthebastids; pricegouging; profiteering; refinery; reregulateoil; saudiarabia; saudis; speculation; speculators; supply; unleadedgasoline; wti
Navigation: use the links below to view more comments.
first previous 1-20 ... 81-100101-120121-140 ... 301-312 next last
To: atlanta67
reduce consumption

That won't have much effect unless the whole world decreases consumption. This demand surge could be blamed on the new China/Walmart economy.

101 posted on 08/28/2005 5:00:41 PM PDT by Reeses
[ Post Reply | Private Reply | To 14 | View Replies]

To: xrp

""What's your ETA for $40/barrel?""


2008 or 2009...there need to be demand destruction and more supplies.


supplies are slow to come online becasue oil companies got so badly burned in 1986 and 1998 when prices crashed...the fact that capital spending in the oil patch is slow to ramp up is a sign that oil companies know that most of this is peculation


102 posted on 08/28/2005 5:02:00 PM PDT by atlanta67
[ Post Reply | Private Reply | To 80 | View Replies]

To: SolarisRocks
I would imagine the refiners enjoy the regulations. Just as the drug companies enjoy FDA regulations that make discovery of new drugs cost prohibitive. Despite what you may read in the news, the high price of oil is not refinery driven. Lack of refining capacity is actually a negative influence when it comes to the price of oil. I don't know the extent to witch drillers are held back by regulation, but I certainly don't think price caps would be an effective long term policy.
103 posted on 08/28/2005 5:02:47 PM PDT by TBall
[ Post Reply | Private Reply | To 83 | View Replies]

To: atlanta67
The nice thing about $90/bbl is that we'll no longer have people saying the record-high oil price isn't really a record.

At $90/bbl, it'll finally be equal to the inflation-adjusted 1980 price.

104 posted on 08/28/2005 5:03:15 PM PDT by newgeezer (Just my opinion, of course. Your mileage may vary. You have the right to be wrong.)
[ Post Reply | Private Reply | To 96 | View Replies]

To: atlanta67

Your arrow to the DU is pointing to thr RIGHT! It should point to the LEFT!


105 posted on 08/28/2005 5:03:42 PM PDT by Renegade
[ Post Reply | Private Reply | To 99 | View Replies]

To: the invisib1e hand
"Americans buy oil on the very same open markets that everyone else does! They just aren't taxed like you europeans are! " .....

Correction:

"Americans buy oil on the very same open markets that everyone else does! They just aren't taxed like you europeans are, Yet ! " but, give them time.
106 posted on 08/28/2005 5:03:45 PM PDT by Prophet in the wilderness (PSALM 53 : 1 The FOOL hath said in his heart , There is no GOD .)
[ Post Reply | Private Reply | To 45 | View Replies]

To: the invisib1e hand

This thread is filled with trolls....or the same troll posting under different names.


107 posted on 08/28/2005 5:04:31 PM PDT by PilloryHillary (Eva Peron + Chappaqua = Hillary Clinton)
[ Post Reply | Private Reply | To 98 | View Replies]

To: All
Backing off a little...

Light, Sweet Crude Oil

8/29/2005 Session Contract Detail for Oct 2005
alt alt alt
alt alt
alt alt alt alt
alt Last alt alt alt 69.85 alt alt
alt alt alt alt
alt
alt alt alt alt
alt Open High alt alt alt 68.60 alt alt
alt alt alt alt
alt
alt alt alt alt
alt Open Low alt alt alt 68.60 alt alt
alt alt alt alt
alt
alt alt alt alt
alt High alt alt alt 70.80 alt alt
alt alt alt alt
alt
alt alt alt alt
alt Low alt alt alt 68.60 alt alt
alt alt alt alt
alt
alt alt alt alt
alt Settle alt alt alt 66.13 alt alt
alt alt alt alt
alt
alt alt alt alt
alt Change alt alt alt +3.72 alt alt
alt alt alt alt
alt
alt alt alt alt
alt Open Interest alt alt alt 0.00 alt alt
alt alt alt alt
alt
alt alt alt alt
alt Volume alt alt alt 0.00 alt alt
alt alt alt alt
alt
alt alt alt alt
alt Last Updated alt alt alt 8/28/2005 19:33:46

 

 

108 posted on 08/28/2005 5:04:53 PM PDT by RWR8189 ( Extremism in defense of liberty is no vice. Moderation in the pursuit of justice is no virtue.)
[ Post Reply | Private Reply | To 97 | View Replies]

To: dufekin

And who is going to buy your $400/barrel oil? No one. The majority of people in this country can barely afford $2.50/gallon gas as it is! Even on your low side of $150/barrel, if sustained, I think you would see a worldwide economic depression soon result that would push oil prices back down to $10-20/barrel.

Even at current prices, I think its unsustainable and will cause a global recession in 6-12 months, with oil prices falling to around a more realistic $40/barrel.


109 posted on 08/28/2005 5:04:55 PM PDT by VOR78
[ Post Reply | Private Reply | To 81 | View Replies]

To: Prophet in the wilderness

we should very soon begin to see recession in countries that are industrializing and are not very energy efficient..S Korea comes to mind


110 posted on 08/28/2005 5:05:09 PM PDT by atlanta67
[ Post Reply | Private Reply | To 106 | View Replies]

To: VOR78

i think youre right


111 posted on 08/28/2005 5:05:55 PM PDT by atlanta67
[ Post Reply | Private Reply | To 109 | View Replies]

To: hedgetrimmer
But, the Liberals/Communist/Envirowackos won't let us drill that oil.
112 posted on 08/28/2005 5:06:12 PM PDT by Prophet in the wilderness (PSALM 53 : 1 The FOOL hath said in his heart , There is no GOD .)
[ Post Reply | Private Reply | To 91 | View Replies]

To: HuronMan
""Bush's friends will not let him release any oil from the reserve. Remember when J.F. Kennedy was starting to talk about eliminating the oil depletion allowance? Look what happened to him a short time later!""

Are you nuts??? Have another glass of kool aid, troll.

113 posted on 08/28/2005 5:06:51 PM PDT by PilloryHillary (Eva Peron + Chappaqua = Hillary Clinton)
[ Post Reply | Private Reply | To 93 | View Replies]

To: RWR8189
these supply disruptions

There are none and there have been none. When gasoline in Iraq and Venezuela is selling at 10 cents a gallon, and even China it is $2 a gallon, there is no supply problem.

114 posted on 08/28/2005 5:08:02 PM PDT by RightWhale (Partly cloudy, 62 degrees, wind <7 knots in Fairbanks)
[ Post Reply | Private Reply | To 9 | View Replies]

To: VOR78

The Chinese demand will start to fall rapidly. How can the Chinese general public afford to purchase gasoline at these ridiculously prices? Americans, even the the Wal-Mart shoppers, have deeper pockets that the Chinese motorists.


115 posted on 08/28/2005 5:08:23 PM PDT by HuronMan
[ Post Reply | Private Reply | To 109 | View Replies]

To: RightWhale

Gasoline is cheap in china becasue they have price controlls....they also recently have been having gasoline lines in Hong kong because of those price controlls


116 posted on 08/28/2005 5:08:58 PM PDT by atlanta67
[ Post Reply | Private Reply | To 114 | View Replies]

To: lauriehelds

My, my...why is it that some poor smuck gets fined big-time for "price gouging" if he sells ice, plywood, or gas at the pump for more than he should after a hurricane, yet the oil companies can run up the price like this with NO penalty? Just what makes the one "price gouging" and not the other...the oil companies have bought more politicians?


117 posted on 08/28/2005 5:09:10 PM PDT by kittymyrib
[ Post Reply | Private Reply | To 1 | View Replies]

To: RightWhale

I'm talking about the imminent disruptions that will be caused by Katrina.


118 posted on 08/28/2005 5:09:15 PM PDT by RWR8189 ( Extremism in defense of liberty is no vice. Moderation in the pursuit of justice is no virtue.)
[ Post Reply | Private Reply | To 114 | View Replies]

To: kittymyrib

the price of gasoline MUST rise to keep demand and supply in balance...if prices didnt rise but supply fell, the nwe would quickly deplet our inventories and we'd all be spending hours inline for gasoline.


119 posted on 08/28/2005 5:10:24 PM PDT by atlanta67
[ Post Reply | Private Reply | To 117 | View Replies]

To: atlanta67
they also recently have been having gasoline lines in Hong kong because of those price controlls

That is due to distribution, something like rationing, which is also under central control. Somewhere, somehow, the price of gasoline in China is being supported.

120 posted on 08/28/2005 5:12:11 PM PDT by RightWhale (Partly cloudy, 62 degrees, wind <7 knots in Fairbanks)
[ Post Reply | Private Reply | To 116 | View Replies]


Navigation: use the links below to view more comments.
first previous 1-20 ... 81-100101-120121-140 ... 301-312 next last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson