U.S. oil surges $4, to record above $70, on hurricane

reuters.com ^ | 28 August 2005

[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.

[atlanta67]

entitlement mentality means that americans got so use to cheap gasoline in the 1980s and 1990s they think it is their god given right to drive an SUV and fill it up with gasoline that costs less than $1.50.

I love to ask a poll question:

would you give up cheap gasoline or social security?

[the invisib1e hand]

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.

I've got a nice, fat negative externality for you.

what on earth -- and wait, I thought I was adressing someone else. Those are the remarks of a horse's *ss.

[atlanta67]

""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.""

i would agree except for something called an externality. Drivers of gas guzzelers are imposing a cost on the rest of society.

[EagleUSA]

...because the oil needs to be refined and the U.S. just does not have the refining capacity to do it cheaply....
---
And we wonder why that has been a FACT for decades?? Cheap is not a beautiful word to the oil companies -- it means more supply and more competition -- just what they DON'T WANT.

[the invisib1e hand]

Americans got so use to cheap gasoline

oh, I love this stuff!! You make it SO easy. Americans buy oil on the very same open markets that everyone else does! They just aren't taxed like you europeans are!

[RWR8189]

Light, Sweet Crude Oil

8/29/2005 Session Contract Detail for Oct 2005

	Last				70.39
	Open High				68.60
	Open Low				68.60
	High				70.80
	Low				68.60
	Settle				66.13
	Change				+4.26
	Open Interest				0.00
	Volume				0.00
	Last Updated				8/28/2005 19:13:57

 

Unleaded Gasoline

8/29/2005 Session Contract Detail for Sep 2005

	Last				2.1300
	Open High				2.0310
	Open Low				2.0310
	High				2.1300
	Low				2.0310
	Settle				1.9269
	Change				+.2031
	Open Interest				0.00
	Volume				0.00
	Last Updated				8/28/2005 19:09:54

 

 

 

[newgeezer]

I-know-this'll-make-you-giddy-with-delight ping.

[TBall]

"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..."Or maybe the fact that supply is already tight because other countries like China are consuming a lot more. God forbid that oil companies are allowed to make a decent profit. That might just encourage investment from outsiders and ultimately increase supply to match demand.

[jude24]

You think your reply was smart, don't you? You seem only to know talking points about price controls.

Electric companines have had price controls in place since the Depression, and it has worked well. No one has lost electricity, except BECAUSE of deregulation in the California rolling blackouts.

[atlanta67]

A steep tax should be imposed on all vehicles that get less than 20 mpg combined and a tax credit given to all vehicles that get more than 30mpg combined.

[CROSSHIGHWAYMAN]

Will President Bush be releasing oil from the Strategic Petroleum Reserve to account for these supply disruptions?

If Bush doesn't release enough oil to make up for the disruption...it will be criminal!

We've got 800 million barrels.

50 million or so barrels will hold off the speculators tomorrow....but he must act before the markets open.

[atlanta67]

gasoline rose 20 cents per gallon in just a few minutes

[bigsigh]

wait awhile for $100 per barrel.

[EagleUSA]

Drivers of gas guzzelers are imposing a cost on the rest of society.
-----
Your argument is weak in that these drivers PAY for the fuel they use. They are getting no special benefit and the oil companies love them!!!

[bigsigh]

DECENT profit?

[the invisib1e hand]

incidentally, please find where I complained about fuel prices.

nevermind, I'm done with you. But you get my moron award. You'll be changing your screenname and trying to register again before the night's out.

[xrp]

A steep tax should be imposed on all vehicles that get less than 20 mpg combined and a tax credit given to all vehicles that get more than 30mpg combined.

Huh? Assuming identical distances driven per week, a driver with a car getting better than 30MPG is ALREADY ahead in the money game. A driver with a vehicle getting < 20MPG is already punished.

[atlanta67]

""Your argument is weak in that these drivers PAY for the fuel they use. They are getting no special benefit and the oil companies love them!!!""


while they do pay for the gasoline themselves, due to the tight supply and demand situation, thay also casue the price to go up for everyone.

In the long run, beyond 2 years, high oil prices are good for the economy....we will produce far more $$$ of GDP for every BTU in 2010 than we do today.

[Walkenfree]

We need more refineries to process the oil.
We need Fuel alternatives, to avoid this problem.
I've heard of a company developing the roots of the Cattail plant, which will be environment friendly and cost effective. Anyone aware of it?

[xrp]

Wait, aren't the Strategic Petroleum Reserves in Katrina's path, too?