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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
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To: Lazamataz

Hey!! Watchit mister....


21 posted on 08/28/2005 4:35:21 PM PDT by sit-rep (If you acquire, hit it again to verify...)
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To: mylife

Where's your source to this information?


22 posted on 08/28/2005 4:35:30 PM PDT by xrp (Fox News: I wonder if Greta will cover Aruba Missing Teen for all eternity?)
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To: cardinal4; xrp
dig up a chart of crude. the pattern is a classic buying panic. it's parabolic. things can't be parabolic forever. buying frenzies don't end quietly... they often have a "blow off top." Generally speaking, of course.

Everyone and his mother will sell as much oil at 70+ as he can 'cause he knows it's not worth half that much. Wouldn't you?

23 posted on 08/28/2005 4:35:35 PM PDT by the invisib1e hand (tagline)
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To: Lazamataz

"This is getting f***ing absurd."


couldn't have said better myself....


24 posted on 08/28/2005 4:35:59 PM PDT by roaddog727 (The marginal propensity to save is 1 minus the marginal propensity to consume.)
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To: the invisib1e hand

Yep, I have my sell orders in for tomorrow morning @ the bell!


25 posted on 08/28/2005 4:36:32 PM PDT by xrp (Fox News: I wonder if Greta will cover Aruba Missing Teen for all eternity?)
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To: EagleUSA

""WHY should the price of crude oil go UP just because a few locations shut down??"""

because supply has beeen reduced...simple supply and demand....now if entitlement mentaility american would drive a bit less, prices would quickly fall.


26 posted on 08/28/2005 4:36:45 PM PDT by atlanta67
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To: atlanta67

Never thought the government ( Supremes) would take away your right to private property either , BUT They did !!!


27 posted on 08/28/2005 4:37:16 PM PDT by Renegade
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To: xrp
(American whine) "but, but I don't want to give up my SUV!"

I defend my right to drive whatever the f*ck I please. You've come to wrong place to rag on America, friend.

28 posted on 08/28/2005 4:37:16 PM PDT by the invisib1e hand (tagline)
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To: lauriehelds

Just filled up and paid $2.63 here in the Detroit suburbs. Gas is $2.75 in northern Michigan. It would be a good idea to get out this evening and fill up before the prices up again. We fully expect to be paying more than 3 bucks a gallon by the end of the week.


29 posted on 08/28/2005 4:37:20 PM PDT by PilloryHillary (Eva Peron + Chappaqua = Hillary Clinton)
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To: the invisib1e hand

No, that's fine. Just so long as people don't complain about the cost of filling up their SUVs! (and you're not)


30 posted on 08/28/2005 4:38:12 PM PDT by xrp (Fox News: I wonder if Greta will cover Aruba Missing Teen for all eternity?)
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To: the invisib1e hand

""I defend my right to drive whatever the f*ck I please. You've come to wrong place to rag on America, friend.""

1. you have no right to complain about energy prices
2. you are imposing a negative externatility on the country wuth you SUV, so yes society can punish or reward you for what you drive.


31 posted on 08/28/2005 4:38:36 PM PDT by atlanta67
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To: Lazamataz
These gas companies made record profits in the 1970's during the energy crises. The American people will not sit by and let that happen again.

If they try to do that again, the oil companies WILL be nationalized.

32 posted on 08/28/2005 4:39:01 PM PDT by jude24 ("Stupid" isn't illegal - but it should be.)
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To: jude24

""If they try to do that again, the oil companies WILL be nationalized.""

yeah well you can then sit in line for 4 hours to buy a 5 gallon limit of gasoline...of course central planning worked so well in the USSR.


33 posted on 08/28/2005 4:39:58 PM PDT by atlanta67
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To: atlanta67
because supply has beeen reduced...simple supply and demand....now if entitlement mentaility american would drive a bit less, prices would quickly fall.

Holy smokes, another freakin troll?

Entitlement mentality american? wtf does this mean? first, if we wish to pay the price, that's our prerogative. you benefit from a free market in crude oil as much as anyone else, regardless of what you drive, and in spite of this snivelling, self rightous rant of yours. Second, there's a saying: love it or leave it.

34 posted on 08/28/2005 4:39:58 PM PDT by the invisib1e hand (tagline)
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To: PilloryHillary

Damn! Prices in S. Jersey just dropped $.05 to $2.42 today . Short lived !!


35 posted on 08/28/2005 4:40:53 PM PDT by Renegade
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To: jude24
These gas companies made record profits in the 1970's during the energy crises. The American people will not sit by and let that happen again. If they try to do that again, the oil companies WILL be nationalized.

Possible.

36 posted on 08/28/2005 4:41:11 PM PDT by Lazamataz (Islam is merely Nazism without the snappy fashion sense.)
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To: lauriehelds
Maybe they will discover more oil deposits in the Gulf and on shore after the hurricane passes.
Got to look at this in a positive light.
Hech, even Forest Gump cornered the shrimp market in the south after hurricane Camile. Sarcasm.
37 posted on 08/28/2005 4:41:12 PM PDT by Prophet in the wilderness (PSALM 53 : 1 The FOOL hath said in his heart , There is no GOD .)
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To: atlanta67

Yup we drive around in SUVs hollering about gas prices.
Heating and cooling 5000sq ft houses griping about costs.

I guess we havent learned squat from the 70s about conserving.

A big problem here is that even if we conserve China wont.
Its quite a dilly of a pickle of a problem.
The world demands more and more energy as it modernises.

At least the prices in this article should be transient as things should return to lower prices after Katrina is over.
Pray that there isnt extensive damage to the oil rigs out there


38 posted on 08/28/2005 4:41:18 PM PDT by mylife (The roar of the masses could be farts)
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To: RWR8189
Oil from the Strategic Petroleum Reserve will do nothing to lower the price of gasoline or home heating oil because the oil needs to be refined and the U.S. just does not have the refining capacity to do it cheaply. So these high prices will be around for awhile unfortunately.
39 posted on 08/28/2005 4:41:29 PM PDT by puppypusher
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To: atlanta67

because supply has beeen reduced...simple supply and demand....
-----
And to be more precise -- DEMAND is the reason, but the real point is that the price increase IS NOT NECESSARY -- just profiteering opportunism -- that is the point I am trying to make.


40 posted on 08/28/2005 4:41:29 PM PDT by EagleUSA
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