Oil prices hit another record (oil hits record near $71)

CNN ^

[traumer]

Crude soars near $71 on reports of damage to oil rigs, then backs off; more storms to come.

LONDON (Reuters) - Oil climbed to a new record high near $71 a barrel Tuesday as oil firms assessed damage wrought by Hurricane Katrina's rampage through the Gulf of Mexico, where most oil and gas output was at a standstill and refineries were closed.

Light sweet crude for October delivery soared as high as $70.85 in New York Tuesday after the first news came out of damage to oil rigs in the Gulf of Mexico. Katrina swept across the Gulf, which pumps a quarter of U.S. oil and gas, and slammed into Mississippi on Monday, killing at least 50 people. (Full story.)

The October oil contract later backed off and was up $2.20 at $69.40 a barrel on the New York Mercantile Exchange, still up about 3 percent. The contract had touched $70.80 in electronic trading Monday -- at that point the highest trading price on record.

London Brent crude, resuming trade after Monday's holiday, jumped $2.11 to $66.98 a barrel.

Natural gas was also sharply higher, and wholesale gasoline shot up to almost $3 on the Gulf coast.

[theDentist]

But they're not price gouging!

[RightWhale]

Natural gas was also sharply higher

No kidding. It's going to be a long winter.

[Terabitten]

Maybe this will be enough to get things moving to build more refineries.

[EggsAckley]

Yesterday our Safeway station had regular priced at $2.79.
Of course, our county always gets gouged.

[NavyCanDo]

I just have to ask. Do any of you still buy the premuim grade gas, and if so why?

In my State of Washington premium averages 20 cents per gal more than regular

[traumer]

I see no gas price change around here.... (YET !)

[RightWhale]

Interesting to compare the comments now and the comments just before the last national election. Prices are considerably higher now, but the rhetoric is the same. One positive thing, oil/gas companies plow their profits back into oil/gas field development so the huge numbers of new wells might keep up with increased demand or at least hold the line.

[AdamSelene235]

Borrow and spend all you want, we'll print more.

[RadioAstronomer]

Maybe this will be enough to get things moving to build more refineries.

Too bad we dismantled so many back in the 80s. :-(

[RadioAstronomer]

I just have to ask. Do any of you still buy the premuim grade gas, and if so why?

Yes. I am drving a 2005 Corvette. I use 91 octane or better fuel only.

[theDentist]

When I was driving from Virginia to Mass, and then back, I used Premium. Otherwise I use the regular grade. The price jumped a dime/gallon as I was filling up this morning.

[ThinkDifferent]

But they're not price gouging!

Um, no, they're not. Unless you define gouging as "charging what the market will bear", in which case every seller of every product is gouging.

[Uncle Fud]

I love it!

Me too!

[Terabitten]

One positive thing, oil/gas companies plow their profits back into oil/gas field development so the huge numbers of new wells might keep up with increased demand or at least hold the line.

They need to invest in refineries. We can have all the oil in the world, but if we can't turn it into gasoline, well....

[reformedliberal]

We are rural and so we pay more, too. But in La Crosse, there are 2 Kwik Trip stations that are always .09--.10 cheaper because they are on the less visited side of town.

We filled up both vehicles on Friday and topped off the normal 50 gallon reserve that we always try and keep. Today, my husband topped off the van again and bought another 5 gallons for the reserve. He paid $2.69 and was told that by 5pm today, it would be $3.00. This was at a Kwik Trip station.

[snowsislander]

The September gasoline contract appears to be showing $2.38 per gallon at NYMEX (http://www.nymex.com/gas_fut_cso.aspx), with a high of $2.46 today. Other months out look more reasonable.

[RightWhale]

They may have to build a couple refineries now. Be sure they don't want to invest in refineries that will sit idle just in case. But with NO off line they will either get those refineries running again very quickly or build new someplace else.

[Michael Barnes]

This winter is gonna suck.

[Tallguy]

I wonder which will give CNN more joy: The 2,000 American death in Iraq, or $75 per barrel oil.