Posted on 10/25/2007 8:31:58 PM PDT by M. Espinola
Oil prices extended gains to a new all-time high of $91.10 a barrel in early electronic trade on Friday, bolstered by supply concerns during the northern Hemisphere winter and growing political tensions in Middle East.
NYMEX crude for December delivery, which rose to a record high of $91.10 barrel, was up 31 cents at $90.77 by 0001 GMT. U.S. crude settled up $3.36 to $90.46 a barrel on Thursday after striking a record $90.60.
London Brent crude also hit a new record high of $88.01 a barrel.
"The rebound in oil prices has been remarkable. With all the bullish news flow in the market, I think there is potential for oil to rise further for the rest of the day and in the near term," said David Moore, an analyst at the Commonwealth Bank of Australia.
Oil, which was falling at the start of the week on concerns about the strength U.S. economy, has gained over $6 since Wednesday, after government data revealed a larger-than-expected 5.3-million-barrel drawdown in U.S. crude inventories.
The sharp fall in crude stocks, combined with fresh signs that oil cartel OPEC will shrug off calls for additional oil from big consumer nations, have exacerbated fears of a possible supply crunch in the coming winter.
Energy officials from OPEC nations Venezuela and Algeria said the producer group will not boost output when it meets informally in Saudi Arabia next month.
"The high prices are not coming from a lack of production," Algerian Energy Minister Chakib Khelil said. (Continued...in the link)
I just added the word inflation to the keywords list. I couldn’t stop myself. I keep thinking ... inflation, inflation ...
These people really need to drop by a supermarket or their local gas station - real soon, since pump price will be climbing - again.
It’s time for energy independence.
Why are prices hanging back? I feel like I’m in bizarro world with oil over $90 and regular at $2.70.
It's not ALL supply problems driving this change...can anyone here spell dollar depreciation?
I like to call it divergence where I live the prices are remaining the same as when the price was at $70.00 something is not right at all and I believe its going to show its evil head very soon.!!!!!!
Oil Rises to Record Above $92 as U.S. Pressures Iran's Military
We should have proceeded with energy withdrawal from Islamic dominated OPEC after the 1973-74 oil 'crisis' and the second major energy headache in 1979, after the Carter White House allowed fanatical Shi'ites to grab Iran's vast OPEC oil reserves & profits, which they have been blatantly abusing for years to further their brand of radical Islam, and in the last few years plotting the murdering our troops in Iraq and Afghanistan through Iranian proxies.
When one considers how rapidly the price of oil has rocketed upward, the Iranians and Saudis have earned millions, if not billions in quick energy profits to fuel & expand their brands of Islamic terrorism, coupled with their ongoing terror attacks against our troops in Iraq & Afghanistan, as well as terrorism directed against Israel.
Normally Friday's have been considered 'profit taking taking Fridays -- normally.....
The explosive events (Turks & Iranians attacking Iraqi Kurds) transpiring on the map below (plus intense conflict regions further west, not shown) currently and in the near future will greatly determine energy trending directions for the remainder of 2007 & heading into the winter months of 2008, as in Iran's Mahdi worshipping Shi'ite cultists being removed once and for all, coupled with the terrorist instigating Assad clan in Damascus.
The very bearish U.S. dollar will only exacerbate a bad consumer situation into a worse one due to buying power diminishing because of additional increases of energy costs during the cold weather along with events overseas. Go to a supermarket for proof of inflation.
In terms of pump prices catching up with crude's spot prices -- they will, bank on it.
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Recall how the last Manhattan project got under way, it was fear that the Nazis or Japs were working on their bomb and would use it against Allied troops or directly against US. Alarmingly we are being confronted with the same dangerous situation in Iran, and potentially in Pakistan, if al-Qaida/Taliban jihadists were to gain control of that nuclear weapons arsenal.
We should have swiftly dealt with the terrorist instigating Iranian régime as soon as we captured Saddam, now the situation is far more precarious due to the mounting economic problems (housing, banking, subprime, food & energy inflation), coupled with the fact in 2004 & 2005 oil hovered between $30ish to slightly above $55 a barrel. Most likely oil would have surely doubled in price (or higher) if the Iranian terrorist régime had been dealt with then, and oil prices would have leaped to $80, $100 or even higher, contingent on Iranian triggered 'energy supply disruptions' throughout the Persian Gulf region, plus possible additional Iranian terrorism, world-wide. Well, now oil is already over $90, the threat and risks are higher, and a doubling at current price levels will severely sink the current, fragile U.S. & global economy, which is precisely the barbaric goal of the demented, twisted mindset of the frenzied jihadist enemies of Western civilization.
Do we have a choice to ignore Tehran's multiplying threats? Being eventually nuked by these Muslim madmen? No way, we must attack and overthrow the Islamic killers, fanatically intent on gaining offensive nuclear weapons (with Moscow's assistance) - but we must be prepared to pay a far more expensive price then before, in a number of respects.
Even these prices will look 'cheap' in the future.
I’ve also heard there was this camel train that got stopped by a sand storm yesterday. Future traders where concerned with the well being of the camel train and adjusted the prices accordingly.
The camel situation was really serious, and was good for at least $1.50 up on those calls :)
well about 2 months ago i read an article where there was a glut of shale oil because the pipelines where up to 100% capacity and there was no way to pump oil from Canada down to us.
Also 1 yr ago read an article where the opec people did not wish for the 10 dollar oil crash from the 80’s.
With US recession that shut down the 80’s oil scare we are due for the oil correction no matter how the longs scream with new theories. I mean houses where a great bs story just a year ago, even politicians where hitting each other on the back with amazing new homeownership and spiritual economic growth bubble.
All bogus all the time.
The crack spread is very narrow now. This past spring, the crack spread was very wide, so you had higher pump prices relative to the price of crude.
Shale oil is not in commercial production in North America. Alberta oil sand production continues to grow as does the pipelines bringing oil from Western Canada to the US. There is not a backlog of oil production unable to be shipped.
Once the dollar loses its status as the world’s reserve currency, all bets are off, there will be no floor underpinning our economy. We could have an Argentina-like experience.
I noticed the low proces as well. I was paying close to $3.00 per gal when oil was $75 per bbl last year.
In other words we were ripped off at the pumps???
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