Posted on 07/05/2006 1:27:25 PM PDT by caa26
WASHINGTON — Oil prices jumped to a record above $75 a barrel on Wednesday, propelled by a rally in gasoline that analysts said could send average U.S. pump prices past $3 a gallon by the weekend.
Recent snags in oil-shipping and refining along the Gulf Coast have raised traders' concerns about motor-fuel supplies at a time when demand continues to rise despite soaring prices. The start of a new fiscal quarter also has brought more speculative money into the market, brokers said.
"Everybody thought we'd hit a price that would create permanent demand destruction. But demand for gasoline is rising," said Alaron Trading Corp. analyst Phil Flynn. "Once again the American public has shown its ability to get over paying high prices for gasoline."
A protracted diplomatic standoff between the West and Iran, OPEC's No. 2 oil supplier, has kept a high floor beneath prices, and analysts said geopolitical tensions were heightened further on Wednesday by North Korea's test-firing of missiles.
(Excerpt) Read more at foxnews.com ...
Also, what exactly are the recent snags in oil shipping & refining along the Gulf Coast mentioned in the article? Is this just related to recovery from Katrina, and some of the refineries still being offline?
Gas prices in Hawaii haven't been below $3/gal in a long time now.
What say we have a war for oil?
based on my observation over the weekend, $3/gallon produces a lot of whining for the tv cameras but no reduction in traffic count
Just heard prices were going to spike due to "jitters over NK's missiles". BS. They'll use anything to spike'em.
Interesting.
no where in calif has GAs been below 3.00 in I don't know how long
OPEC will have their day. It is coming.
"I'm-gonna-keep-drivin'-mah-F150-no-matter-what-the-Drive-By-Media-cries-about" PING.
(The Palestinian terrorist regime is the crisis and Israel's fist is the answer.)
What say we have a war for oil?
We already have one, oil is winning
Gee, When North Korea launched their first missile back in 98' oil was at like $15 a barrel. I don't see what North Korean missile capability has to do with the price of oil. It's wild speculation and gouging by the traders.
(The Palestinian terrorist regime is the crisis and Israel's fist is the answer.)
That is what I don't understand, absent an actual war or conflict with NK it shouldn't drive up oil prices substantially. Its not as if NK produces oil or anything else for that matter.
LOL
I can't say I see a link between the price of gasoline and the price of oil that gasoline should drive oil directly. If anything it should be an inverse relation. It might be that the futures market tends to link the two no matter what, but it would seem odd that gasoline should be controlling.
what IS coming?
Yeah, people complain, but do they change their driving habits? No.
I'm beginning to feel like a genius. A few years ago, I specifically looked for and bought a car I could easily afford the payments on. I also wanted something that also got decent gas mileage. The car is long paid for and it really pays for itself at the pump.
I'm still waiting for this to happen.
yitbos
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