Crude rises above $108 per barrel in New York

Oil Marketer (UK) ^ | 10MAR08 | Elaine Frei

[familyop]

Crude oil prices were higher again Monday, hitting a new record at $108.17 per barrel before falling back a bit but remaining above $107 per barrel at the close of floor trade in New York.

April contracts for West Texas Intermediate crude were at $107.85 per barrel at the close on the New York Mercantile Exchange, a gain of $2.70 on the session and slight decline from its peak earlier, while Brent crude added $1.79 to $104.17 per barrel on the ICE Futures Europe exchange in London.

Investors put their money into oil as a hedge against declines in the dollar despite the greenback’s strength versus the euro on the day as many believe that the dollar will continue to decline versus the shared currency, ignoring data showing that supplies are generally increasing as demand declines.

Also ignored was the relaxing of tensions over the weekend in South America as Venezuela reestablished full diplomatic relations with Colombia after last week’s threats over an incursion by Colombia into Ecuador for an attack against a rebel outpost there.

The price of crude oil sent at-the-pump gasoline prices up another 0.7 cent overnight in the United States to an average of $3.22 per gallon nationally, 69 cents higher than the price last year at this time and near last May’s peak price.

Retail prices for gasoline in the US have risen by 24 percent in the past month.

Nymex April gasoline futures added 1 cent to $2.70 per gallon on the session while April heating oil was up 3 cents to $2.98 per gallon and April natural gas gained 27 cents to $10.04 per million British thermal units.

[JasonC]

"Can" is trivial, we have dozens of perfectly unanswerable counters. "Will" on the other hand, we will elect the brazen leftist traitor types siding with all of it deliberately, to punish the victims for being attacked.

Welcome to the left's bizzaro funhouse, where everything is someone else's fault, everything that happens means they were right and you must pay and worship them simultaneously, while our enemies can have anything they please. They will run America as a conquered country, because it is.

[strange1]

I’m thinking something like a brief conflict with Iran in the Strait of Hormuz, like Operation Praying Mantis in ‘88, might do the tricks under current levels of consumption.

A Saudi camel with a urinary track infection would also be right up there.

[catbertz]

"A Saudi camel with a urinary track infection"

[strange1]

Ah, i think you miss posted, Hillary thread is up one.

[Maverick68]

I honestly believe it won’t be long before the American people begin to revolt against the govt. for keeping us so dependant on foreign oil. We must get the word out and force our overlords to safely exploit our abundant oil resources, that is all....

[bluedressman]

the author, like every other news outlet, needs to be corrected.

should read oil futures price....not oil price.

big difference.

[Kolokotronis]

“We need to open on ANWAR, offshore drilling and other resources we have in our control NOW despite the greenie crowd. We have no choice.”

Indeed we do. Unfortunately, short of shifting over to coal and a massive nuclear building program, petroleum based fuel use will just keep us enthralled to people who want us dead. An alternative energy source for electricity will fix that for us but what that alternative source would be I don't know. Where I'm from we have a surplus of electricity and a far greater surplus right next door but bad deregulation/re-regulation by the Feds that my state bought into has caused our rates to skyrocket while the people we send our power to pay a fraction of what we do. Hopefully that will change soon and we do have access to certain biomass fuels from right here which can supply both residential and industrial energy, but what will work here over the long term is no solution for the nation as a whole.

We really need government investment in finding that alternative energy source or frankly our freedoms will be little more than theoretical in a few years.

[catbertz]

Ah, i think you miss posted, Hillary thread is up one.

hahahha well played!

[rb22982]

Would be short lived. Oil demand would plummet and you’d probably see $40 oil again (or less). US Economy would go into free fall at $6-$7/gallon.

[Nowhere Man]

Indeed we do. Unfortunately, short of shifting over to coal and a massive nuclear building program, petroleum based fuel use will just keep us enthralled to people who want us dead. An alternative energy source for electricity will fix that for us but what that alternative source would be I don't know. Where I'm from we have a surplus of electricity and a far greater surplus right next door but bad deregulation/re-regulation by the Feds that my state bought into has caused our rates to skyrocket while the people we send our power to pay a fraction of what we do. Hopefully that will change soon and we do have access to certain biomass fuels from right here which can supply both residential and industrial energy, but what will work here over the long term is no solution for the nation as a whole.

We really need government investment in finding that alternative energy source or frankly our freedoms will be little more than theoretical in a few years.

Agreed, we do need to do something. IIRC, I remember listening to an old tape of KDKA radio where one of the old reporters remembers going out to Wyoming in the late 1940's to check out an operation where they turn coal into gasoline or other motor fuels. Atomic power is a great idea, the French do it and this is one thing where they are correct. Of course, there are other alternate means to make motor fuels. I know this may get some fiscal conservatives upset but we do need some sort of government involvement or at least coordination, giving a relative free hand to those who would work to develop these technologies. We can't do the Jimmy Carter thing and just say, turn the thermostat down/up and wear a sweater or go naked to save energy from our heaters/air conditioners. We as Americans are not going to do that nor we should, anyways, we would give the finger to anyone that would suggest that and rightly so. We just need to work on other ways to get our motor fuels and generate power. We got the raw materials but we are barred from getting them. That's horse hockey, if God put the materials there then we should go get it. We can get it in a clean way, sure accidents will happen, hopefully they will be rare but that should not scare us from going to get the resources we need.

[catbertz]

For sure you’re right. The mythical $200 threshold would be crossed if only temporarily, but the nerves of all industrialized nations would be frayed, and militaries would be on the move to protect their interests. It would be a wild ride, and the Iranians wouldn’t fair well.

[strange1]

snip. We got the raw materials but we are barred from getting them. That's horse hockey, if God put the materials there then we should go get it. We can get it in a clean way, sure accidents will happen, hopefully they will be rare but that should not scare us from going to get the resources we need.

You know, what I am completely lost on is the whole ANWAR drilling, it was set aside just for the purpose of drilling. So now it's to presitine to drill on. let me ask this, when was the last time you were in Alaska in the ANWAR area? How'd it look? Me, I've never been there, and never will.

[RightWhale]

News this morning was that crude oil was nearly to 110 overnight. But NYMEX crude oil index is 108.60 now so somebody was probably trying to high mark.

[commonguymd]

The way oil is trading one could see the bottom falling out soon.

[strange1]

News this morning was that crude oil was nearly to 110 overnight.

I know, kind of like boiling a frog, 1° at a time.

[strange1]

,i>The way oil is trading one could see the bottom falling out soon.

Don't know about that. I read where OPECS just fine wiht this price, said it'll be around 'til next year. What I'd like to see is our exports to Mideast and the likes double in price. Love to see a gallon of milk in Saudi going for $90 a gallon and a bushel of whet at $200. Seems to me they aren't feeling the pain a bit that we are, just like to see our farmers getting rich off of the middle east like they are from us.

[commonguymd]

Do they even control the barrel price or does NY? I would say this is like the housing bubble. We have people making money on speculation, but the shorts will rear their head.

[strange1]

Do they even control the barrel price or does NY? I would say this is like the housing bubble. We have people making money on speculation, but the shorts will rear their head.

It's speculators driving the price now. I've read where there's plenty of oil, and refinery's are fine. You may be right about the bubble, but to be honest, I think if OPEC even gets a whiff of the price dropping they'll just cut production to prop it right back up. Hence them saying they were leaving production flat for now 'til after the election. that to me is the biggest tell, their ability to say they'll hold out for the next president.

[Nowhere Man]

You know, what I am completely lost on is the whole ANWAR drilling, it was set aside just for the purpose of drilling. So now it's to presitine to drill on. let me ask this, when was the last time you were in Alaska in the ANWAR area? How'd it look? Me, I've never been there, and never will.

Good points, although I'd like to "google Earth" it, from the pics I have seen, it looks a bit like the Moon. Plus the area of drilling is a small postage stamp size, most of ANWAR will remain untouched. Come to think of it, IIRC, even the politically correct Canadians drill up there too on their side of the ANWAR area so why can't we?

[epow]

Get ready for $4 gas, 'cause here it comes ready or not.

Most of the things we buy contain substances derived from petroleum, our food is produced with petroleum fueled equipment, and practically everything we buy is transported at some point by a petroleum fueled carrier of some kind. And an awful lot of what we buy comes all the way across the Pacific ocean and then all the way across the continent for those of us in the east. When crude goes up everything goes up, and I'm seeing that now every time I go through the supermarket checkout line.