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Crude oil price hits new high of $102.59 a barrel
The Times Online ^ | February 29, 2008 | Suzy Jagger

Posted on 02/28/2008 6:13:53 PM PST by bjs1779

The price of oil shot to a new high last night as Wall Street traders bought fuel contracts to offset the falling value of the dollar.

Energy traders were also unnerved by a fire at Shell’s Bacton gas terminal in Norfolk, which threatened more than 45 million cubic metres of gas supplies, about 13 per cent of National Grid’s forecast demand. The blaze – which started at 6pm – was extinguished. National Grid sought to reassure markets that the facility, the third-largest in the UK, was still receiving adequate supplies.

Light sweet crude oil for April delivery rose $2.95 to $102.59 a barrel in New York. Even after the market had closed, in after-hours trading, sweet crude continued to rise to $102.97. However, taking inflation into account, the price of oil is still lower than the record set in 1980, which by some calculations hit $104 a barrel.

Yesterday the price surged after US growth data showed that the world’s largest economy had expanded by just 0.6 per cent in the fourth quarter. While a slowing economy usually hits demand for oil, traders appeared to be buying sweet crude contracts as a hedge or as a means of offsetting the weakness of the dollar.

(Excerpt) Read more at business.timesonline.co.uk ...


TOPICS: Business/Economy; News/Current Events
KEYWORDS: crudeoil; energy; oil
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To: Malsua

We need to drill. Like in national emergency.


61 posted on 02/28/2008 9:00:23 PM PST by bjs1779
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To: kinoxi
don’t like the thought of using our food sources as fuel. It’s ridiculous IMO.

Washington likes it, the farmers like it, that leaves us out of the process.

62 posted on 02/28/2008 9:03:11 PM PST by bjs1779
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To: Eye of Unk
I agree. It is a lot of fun to beat the system with your own alternative methods.

I've had a sailboat for a while now and it really is the answer for me. Family responsibilities are the only thing still keeping me in the system.

63 posted on 02/28/2008 9:06:38 PM PST by Bogie
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To: bjs1779
We need to drill. Like in national emergency.

Yes. I worked in the oil field in the early 80s. I killed weeds and drained saltwater. My point however, I learned a whole lot about drilling, formations, logging and others issues. I worked with engineers that knew what they were doing. I went to college, I have a degree...while not in petroleum, it's related. Drill, Drill!

Heck, I figure if I ever get fired from my current job, I'm gonna roustabout in Alaska. I may only last a day, but at the pay rate, it's worth a shot.

64 posted on 02/28/2008 9:08:41 PM PST by Malsua
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To: bjs1779
I don't. From what I can gather we don't. It's wrong on too many levels. The basic physics concerning the amount of waste involved usually gets me before the secondary and tertiary problems are even heard.
65 posted on 02/28/2008 9:10:56 PM PST by kinoxi
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To: Malsua

Nice to meet you! Thanks.


66 posted on 02/28/2008 9:14:02 PM PST by bjs1779
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To: kinoxi

Believe me, I am on your side.


67 posted on 02/28/2008 9:18:41 PM PST by bjs1779
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To: bjs1779

We seem to be completely on the same side with regards to the ethanol issue. Gas prices are not internal to the US. Market speculators on an international level have driven them up. Pump prices are an obscene combination of this and taxes.


68 posted on 02/28/2008 9:26:27 PM PST by kinoxi
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To: cherry

Mortgage rates are set by the bond markets, not bankers.


69 posted on 02/28/2008 9:43:29 PM PST by VegasCowboy ("...he wore his gun outside his pants, for all the honest world to feel.")
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To: bjs1779
Maybe you have the imagination to blame it on something else.

I do.

Combined with OPEC continued hold-back in production, Iran and Venezuela's threats, a weak dollar and some other market nervousness. I don't see it holding this price; but I must admit, I've thought that for some time.

70 posted on 02/29/2008 4:50:51 AM PST by thackney (life is fragile, handle with prayer)
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To: Dog Gone
A refinery shutdown reduces the need to buy crude. You don’t buy it if you can’t use it because your dang refinery is all blowed up.

That puts more crude on the world market looking for a refinery.

Let me propose a different result. Just speculation, not based on any data.

When a refinery shuts down unexpectedly for an extended duration, the demand for crude oil has not gone down, but the supply chain for the end product has been disrupted.

The gasoline and diesel demand has not diminished, the end crude oil demand has not changed.

But the oil bought on long term contracts for this refinery cannot all be handled. I suspect they are still responsible for their contracts, they have to sell that oil and pay transportation cost to somewhere else. At the same time, other refineries are going to have to pick up the slack, the net most likely by foreign refineries since most of ours run maxed out.

Those foreign refineries often don't produce to our specification and need to either make special runs or blend in addition quantities of products like alkylates. These refineries need to increase their purchase of crude oil on the short term to meet their increased demand. Their supplementary short-term purchases drive up the price of crude oil. Or maybe it washes out. I suspect a disruption in the planned shippments with total demand unchanged will make an increase in price.

71 posted on 02/29/2008 5:03:45 AM PST by thackney (life is fragile, handle with prayer)
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To: kinoxi

“This price is not justifiable. The Dollar’s relative decline isn’t doing it. The supply side fundamentals don’t give cause for it. Speculation. Peoples pockets being drained at the pump isn’t ‘speculative’ of course but there is no other specific reason.”

You are smarter thank the market, hey?


72 posted on 02/29/2008 8:07:29 AM PST by FightThePower! (Fight the powers that be!)
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To: FightThePower!

I’m not smarter than the market. The market is driving these prices. Fundamental costs are not. Just pointing out the forces at work. People making money while driving prices up.


73 posted on 03/01/2008 8:27:14 AM PST by kinoxi
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To: kinoxi

So be smart and make money by being long oil.


74 posted on 03/03/2008 6:23:28 AM PST by FightThePower! (Fight the powers that be!)
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To: FightThePower!

109.83
up 1.08


75 posted on 03/12/2008 11:44:57 AM PDT by RightWhale (Clam down! avoid ataque de nervosa)
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To: FightThePower!

110.09
up 0.17 intraday


76 posted on 03/12/2008 1:18:33 PM PDT by RightWhale (Clam down! avoid ataque de nervosa)
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To: RightWhale

Hey Right Whale, is it the traders fault? Is it the falling dollar? Is it the 10,000 chinese who buy cars every day? Who knows? Who cares? If you know what the trend is and you are not smart enough to take advantage of it they its your own fault.

A whole lot of Chinese and Indians are going to be using oil and the don’t give a crap if gas cost 4-5 or 10 dollars a gallon. They are going to be buying cars. Just as you and I will be driving to work as gas costs that much. Get used to it.


77 posted on 03/12/2008 3:24:44 PM PDT by FightThePower! (Fight the powers that be!)
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To: FightThePower!

Buy gold!
LOL


78 posted on 03/12/2008 3:31:52 PM PDT by RightWhale (Clam down! avoid ataque de nervosa)
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To: RightWhale

“Buy gold!”

I did a long time ago....silver oil and natural gas too! :)


79 posted on 03/12/2008 4:03:41 PM PDT by FightThePower! (Fight the powers that be!)
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To: FightThePower!

NYMEX stove oil $3.19 wholesale futures contract


80 posted on 03/14/2008 8:27:32 AM PDT by RightWhale (Clam down! avoid ataque de nervosa)
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