Posted on 06/26/2008 4:53:20 PM PDT by tobyhill
NEW YORK (CNNMoney.com) -- Oil reached $140 a barrel for the first time ever Thursday following reports that Libya may cut production and an OPEC official said crude could hit $170 a barrel this summer.
Meanwhile, the dollar's decline against the euro added further upward price pressure.
"I think this is just a combination of all those" factors, said Mark Waggoner, president of Excel Futures in California.
Light, sweet crude for August delivery ended the trading day at a record settlement of $139.64 a barrel, up $5.09, on the New York Mercantile Exchange - the third-largest single-day jump on a dollar basis in trading history. The previous settlement mark of $138.54 was set June 6, when oil prices jumped a record of $10.75 a barrel.
Just before the close, oil spiked to an intraday record of $140.39 a barrel. The previous trading high of $139.89 was set June 16.
(Excerpt) Read more at money.cnn.com ...
It's time for someone to call a bluff.
If there is insufficient oil to drill for, the oil companies should publicly state so, and tell Congress to go ahead and cancel the leases and refund the money to the oil companies. On the other hand, if there really is sufficient oil to drill for, and the oil companies are playing a game, then I would like them to be exposed also. Either way, someone needs to put up or shut up.
Another thing the oil companies can do is to tell Congress that since it is demanding that the oil companies drill on their leases, that Congress should also waive all restrictions that inhibit the companies from building refineries on land they already own.
What Americans today are paying just to fill a gas tank is what it cost those in the 50s to pay their entire monthly mortgage.
lol....
Try that in todays America.
The world changes. Does this come as a surprise to you?
dragnet2 said:
I’d trade the 40s, 50s and 60s to this any day.
AMEN dragnet2...me too...in a heartbeat. My parents bought their 30 acre farm with a house for $3,000.
What’s wrong with telling the oil companies that they can’t import any more oil than they produce? Or they have to produce 30% more than they import.
It includes a chart indicating who owns the world's oil reserves.
BTW, I'm working on a rig in the Gulf of Mexico. It's been in planning, engineering, construction, and commissioning for 10 years and is just now producing. It cost Billions of dollars of investment to create. It has employed thousands of people to get where it is now and will continue to employ several hundred for the next 3+ decades. The site is way offshore. The water is over a mile deep. The oil is miles under the sea floor. When the oil reaches the sea floor it is about 250 degrees F and it comes out at over 12000 PSI. The technology to build and produce these deepwater fields has required innovation and invention by the companies involved on a scale similar to what it took to put man on the moon.
Now that the investment is paying off, people want to tax it extra. That will surely encourage the companies involved to take their next Billions in profits and reinvest them in more U.S. production.
There is oil that's easier to produce and that can be produced at a much lower cost. Unfortunately, Congress has deemed it out of bounds. If Congress and the Presidents (both parties) over the last few decades had created a long term energy policy, we would not be in this mess today. Again, they will be looking for votes in November and will try a quick fix and ignore making changes that will provide energy for our children's families.
Anyone ready to volunteer their backyard for a new refinery to process the new oil coming in?
“Oil reached $140 a barrel for the first time ever Thursday following reports that Libya may cut production “
I have been told its the dollar that dictates the price not supply,demand and speculation.
It’s everything. Part of the cause of the weak dollar is tied to oil and some of oil is tied to the weak dollar, it’s all a matter of where we get it from and who we owe it to. Unfortunately since we have a supply and demand problem we have to get it from where we can since we can’t get it from here.
What surprises me is this inept, incompetent, corrupt leadership we've had for the past 15 years or so.
The results of their colossal mismanagement and corruption are quite evident, from our schools, our borders, and this economy and everything else that is run, regulated or controlled by this government.
Did you think all this negative change came about by accident?
Filled up my car yesterday on base at $4.36/gallon. Beats the $4.89 out in town. I ride my bicycle two miles each way to work so I probably won’t have to fill up again until sometime in mid August. Wonder how much gas will be then?
It’s very simple. The world is dividing up pretty quick into those who “can afford” and those who “can’t afford.”
Those who thought everything would probably pretty much stay more or less the same forever are now getting the dirty end of the stick.
how much is that in metric money?
‘bout 120 euros
(....it’s misfortune in the 20s-30s 40s..of course, not the 50s
Well, Gazprom and others keep promising us that it will go up (read: be driven up, ch-ching) to as much as 250. A little market psychology and voila, everyone’s a winner. Except us.
That's a fallacy. Many that worked hard, invested etc, are getting beat like a drum by that dirty stick. Many younger Americans today have little chance of real success or living with the standard of living that was seen in the 40s, 50s and 60s, thanks to the American leadership of the past 15 years or so. There are no guarantees in this world regardless of what one does or thinks. Even basic things like secure jobs are for the most part, a thing of the past.
And when our media talks about oil prices, they mention our US greed and gas guzzling vehicles. I don't hear the stories about China's need. Unfortunately. We are China's main customers, and now they have us over the coals, so to speak. Thanks, Bill.
I think we've always had this to some extent. But now the have-nots are a much larger, fast growing group. Instead of the other way around.
Look at the established, legit immigrant population with advanced education and specialized skill sets.
I spoke with an Indian immigrant not long ago who said, “Each of my suits cost more than my father made for entire year back in India.”
The system is working for a good many people and the American Dream is still a very real thing. The problem is, a lot of folks have a sense of entitlement.
Note I said, “the world is dividing up...” The “haves” (or at least the “have mores”) are a very fast growing group in India, China, etc.
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