Forecast: oil prices to hit 70$ per barrel border

[SLCPUNK]

Wonder how much higher it has to get before the SUV owners start cryin at the gas pump? 

*******

Oil prices climbed to a new record on Monday amid strong demand, worries about the nation's fuel supplies and security threats in Saudi Arabia.

After hitting $64 during trading Monday, the price of U.S. benchmark crude for September delivery closed at $63.94 a barrel, up $1.63 on the New York Mercantile Exchange. That eclipsed Friday's record high close of $62.31 a barrel.

Crude futures today briefly rallied even higher, to $64.27 a barrel, then edged back. Light, sweet crude on the New York Mercantile Exchange was down 6 cents this morning to $63.88.

"Setting a new record in oil is like a broken record - it keeps happening over and over again," said Phil Flynn, senior market analyst for Alaron Trading Corp. in Chicago. "I think we're on a path to hit $70 a barrel."

Flynn and others said Monday's price surge was triggered in part by plans to close temporarily the U.S. embassy in Saudi Arabia in response to what it said was a "threat against U.S. government buildings in the kingdom," reports Los Angeles Times.

According to Reuters, the United Nations' nuclear watchdog was to hold an emergency meeting in Vienna after OPEC's second biggest producer Iran restarted work at a uranium conversion plant, defying the European Union and running a risk of U.N. sanctions.

In the world's top exporter Saudi Arabia, U.S. missions were shut for a second day because of security concerns. Britain said militants were in the "final stages" of planning attacks.

"By far the biggest jolt to the markets has come from the geopolitical front," said Edward Meir, an analyst at Man Energy.

"We think that the bigger source of tension is emanating from the Iranian situation," he added in a report.

Despite the rampant oil price there is no sign yet of demand letting up. Worries that the world's biggest consumer the United States may run short of gasoline after a string of unexpected refinery closures has contributed to the price surge.

"Investors who were unduly negative about the prospects for the world economy at the start of the second quarter have been rapidly reappraising and revising their forecasts as we've moved through the third quarter," said Andrew Milligan, head of global strategy at fund manager Standard Life Investments.

[Prometheus]

haha.. im wont cry at teh pumps.... mine is rather good on gas.... for some reason

[Izzy]

Its gonna damage the economy Can't we just get along with our Arab brothers and sisters?

[Prometheus]

nope.... so lets bomb them some more........

[C0ma]

I can't wait till a move is made against Iran due to their Nuclear Arms program, then that is somehow translated into bombing for oil........

[Cornell]

nope.... so lets bomb them some more........

   And this time TAKE THE OIL!  Shit, everyone hates us already anyway so let's atleast get something out of it. 

[BigCombo]

It'll hit $90 during the next 18 months.  The US government will only address the supply side of oil.  They give subsidies to big oil companies to search for new sources of oil even though the oil industry is the most profitable industry in the US.  The biggest factor in rising market prices is the demand side.  China and India oil consumption is growing tens of percent annually.  Yet, the US government does very little to curb demand; they even promote expanding demand.  If you purchase an SUV (for "business purposes"), the government will give you a $25,000 subsidy which makes buying a hummer cheaper than many sedans.  The latest energy bill was a big joke; it does very little to get the US off of its appetite for oil.  I'd like to see the elimination of SUV subsides with increased subsides for buying a hyprid and more money for hydrogen fuel cell development.   

[Prometheus]

It'll hit $90 during the next 18 months.  The US government will only address the supply side of oil.  They give subsidies to big oil companies to search for new sources of oil even though the oil industry is the most profitable industry in the US.  The biggest factor in rising market prices is the demand side.  China and India oil consumption is growing tens of percent annually.  Yet, the US government does very little to curb demand; they even promote expanding demand.  If you purchase an SUV (for "business purposes"), the government will give you a $25,000 subsidy which makes buying a hummer cheaper than many sedans.  The latest energy bill was a big joke; it does very little to get the US off of its appetite for oil.  I'd like to see the elimination of SUV subsides with increased subsides for buying a hyprid and more money for hydrogen fuel cell development.   

thank the big W for that .. at least clinton era green plan was adressing green and high effecancy veh's.....as wella s alternate fule sources

[SLCPUNK]

I'd like to see the elimination of SUV subsides with increased subsides for buying a hyprid and more money for hydrogen fuel cell development.? ?

Fuckin' A man. I'd like to go a step further and just eliminate SUVs! Fuckin retarded, wasteful, and useless.

[SLCPUNK]

I can't wait till a move is made against Iran due to their Nuclear Arms program, then that is somehow translated into bombing for oil........

May as well, this Administration needs another diversion for our stupid Citizen Joe from questioning the failure and purpose of Iraq.

[SLCPUNK]

Aug 10, 3:19 PM (ET)

By BRAD FOSS

Oil prices zoomed higher Wednesday, touching a new high of $65 a barrel, with buyers focused on refinery snags and shrinking U.S. inventories of gasoline.

The latest rally - crude futures have risen 14 percent in three weeks - highlights just how nervous the market has become to just about any threat to output, even though analysts say the country has adequate levels of fuel in inventory to offset routine supply disruptions.

The heightened sensitivity comes amid strong demand in the United States and China, the world's top consuming nations, where high prices have only tempered rising fuel consumption slightly.

"People talked about $60 crude slowing economies around the world. But here in the U.S., (Federal Reserve Chairman) Alan Greenspan is telling us the economy is doing great and getting stronger," said James Cordier, president of Liberty Trading Group in Tampa, Fla. "It bodes well for crude testing the $70 range."


Even so, Cordier said he has been stunned by the recent runup in oil and gasoline prices and the lack of any response from motorists. Gasoline prices averaged $2.37 a gallon nationwide last week, while demand picked up by 1.4 percent from a year ago, according to the government data.

Cordier said prices at the pump may continue climbing "until consumers are crying uncle, which they're not."

Energy markets have been extremely jumpy about a spate of refinery outages in recent weeks, though analysts and industry officials said refinery snags are not out of the ordinary for this time of year, when plants run hard to meet peak gasoline demand.

"Hiccups are an unfortunate reality of operating refineries," said Bryan Caviness, who follows the industry for Fitch Ratings in Chicago.

"There have not been any more than what you typically see, but the impact (on prices) has certainly been greater than what you've seen in years past."

The transition of power in Saudi Arabia last week following the death of King Fahd has also unnerved markets, as did the security-related closure of the U.S. embassy earlier this week in the world's largest oil-producing nation.

Light sweet crude for September delivery climbed $1.93 to $65 a barrel in afternoon trading on the New York Mercantile Exchange, the highest level since Nymex trading began in 1983.

While oil prices are about 40 percent higher than a year ago, they would need to surpass $90 a barrel to exceed the inflation-adjusted peak set in 1980.

OPEC has pledged to pump more oil if needed, though the market has tended to brush off such talk. That's because worldwide demand is averaging some 84 million barrels a day, excess production capacity is limited to about 1.5 million barrels a day and the type of oil available - sour crude - is not the preferred variety for making transportation fuels.

"The market was used to having 4 to 5 million barrels in spare capacity some 10 years ago and people would still like to have this cushion available, but this is not the case anymore," said Manouchehr Takin, an analyst with the Center for Global Energy Studies in London.


The latest supply report from the U.S. Department of Energy showed that crude oil inventories grew by 2.8 million barrels last week to 320.8 million barrels, or 10 percent above year ago levels. The supply of distillate fuel, which includes heating oil, also increased, rising 2.6 million barrels to 129.9 million barrels, or 6 percent above last year.

The agency data showed a 2.1 million barrel decrease in the nation's supply of gasoline, putting inventories at 203.1 million barrels, or 4 percent below last year.

U.S. refiners operated at 95 percent of capacity, a slight decline from the week before.

Some traders say a spate of U.S refinery troubles - the latest reported by BP PLC (BP) on Wednesday - is evidence the industry and its aging infrastructure are having difficulty maintaining output at high levels. A BP spokesman wouldn't comment on how much production would be lost, though the unit that went down because of a leak has the capacity to process 80,000 barrels of fuel per day.

Mary Rose Brown, a spokeswoman for San Antonio-based refiner Valero Energy Corp. (VLO), said she has been getting calls from the financial media about minor production snags that in years past would not have received any attention. "Everybody's asking, so we tell," she said.

But Fitch's Caviness noted that "a side benefit" of refiners' willingness to talk about even the smallest production glitches is that it makes energy traders jumpy, and tends to push prices - and hence refiners' profits - higher.

In other Nymex trading, gasoline futures gained nearly a cent to $1.8320 a gallon, while heating oil inched up to $1.7839 a gallon.

In London, September Brent on the International Petroleum Exchange was trading at $62.22 a barrel, up 24 cents.

---

Associated Press Writers Edith Balazs in Budapest, Hungary, and Gillian Wong in Singapore contributed to this report.

[SLCPUNK]

MIAMI -- More than 600 truckers gathered in their big rigs Wednesday to protest the rising gas prices in South Florida, NBC 6's Hank Tester reported.



The trucks, which included tractor-trailers, dump trucks and box trucks, gathered at the intersection of Okeechobee Road and the Florida Turnpike in Miami-Dade County.



Traffic in the area was at a standstill as the trucks started a caravan headed toward Miami City Hall.

The trucks traveled 20 miles to present a petition requesting a fuel surcharge break for independently owned trucks.

The truckers claim that the high cost of gas has made it impossible for them to earn a living.

"The airlines are charging passengers. The steam ship lines are charging the shippers. Everyone who's got clout is getting a surcharge," said Ron Carver of the Teamsters Union. "But the truck drivers who have to buy their own fuel are going into bankruptcy because they don't have the clout to demand this. So they're here today asking Congress to pass a mandatory fuel surcharge to keep them afloat."

The drivers told NBC 6 that the shipping companies that contract them to haul to the Port of Miami pay around 85 cents per mile. With the high cost of gas, operating per mile could cost 60 cents.

"A lot of people are making money on this business -- the shipping line, the owner of the company, the marine terminal. They make a lot of money but we are poor," driver Luis Rivera said.

Rivera owns his own rig and contracts with shippers who he says do not adjust per mile fees to cover the increase in gas. For Rivera, what's left is not much of a living for he, his wife and kids.

"She says that this business is really wrong," Rivera said. "We don't have any money, no possibility, no American dreams. We can do nothing."

Both Telemundo 51 and NBC 6 put in calls to local shippers who contract with the drivers. None wanted to talk to the media.

Commissioner Tomas Regaldo has promised to pass the trucker's petition on to federal lawmakers.

[Will]

Lets just say Im glad I dont have a car. lol Public transporation rules - well, in Paris at least. 50 euros a month and I can go anywhere in Paris and close suburbs, anytime, anyday.

As for SUV owners, they are already cryin, SLC. lol On French TV the other night they showed a report saying hybrid cars sales have increased a lot in the past year or so in the US. I think thats a very good thing. A good GMC Suburban - Ive seen one in Paris the other day, not very practical to find a parking space lol -, Cadillac Escalade or a Lincoln Navigator does rule though. Just kiddin.

[SLCPUNK]

Lets just say Im glad I dont have a car. lol Public transporation rules - well, in Paris at least. 50 euros a month and I can go anywhere in Paris and close suburbs, anytime, anyday.

See the problem in America is, unless you are in a big city, public transportation sucks!!! I'd do it in a heartbeat, if I could get anywhere, but it's just not feasable.....

[Cornell]

Lets just say Im glad I dont have a car. lol Public transporation rules - well, in Paris at least. 50 euros a month and I can go anywhere in Paris and close suburbs, anytime, anyday.

See the problem in America is, unless you are in a big city, public transportation sucks!!! I'd do it in a heartbeat, if I could get anywhere, but it's just not feasable.....

EXACTLY!  I have lived in a city and didn't have a car and it was great, but now that I'm not in a big city, I can't do that.  Also, I have 2 sons that play hockey and the older one is on the travel team so we need a vehicle large enought to carry us, luggage, and that huge hockey bag!

[Where is Hassan Nasrallah ?]

but basically, what is oil for ?
cars ? all this war for cars ?
so we can go to the movies ? so the mom can drive her kids to soccer ?

cause yeah, oil is energy, but basically, energy for cars and nasa rockets ?

[Kitano]

but basically, what is oil for ?
cars ? all this war for cars ?
so we can go to the movies ? so the mom can drive her kids to soccer ?

cause yeah, oil is energy, but basically, energy for cars and nasa rockets ?

If this war was just about stealing their oil then why aren't we getting any cheap oil?

You're a complete idiot.

[Prometheus]

but basically, what is oil for ?
cars ? all this war for cars ?
so we can go to the movies ? so the mom can drive her kids to soccer ?

cause yeah, oil is energy, but basically, energy for cars and nasa rockets ?

If this war was just about stealing their oil then why aren't we getting any cheap oil?

You're a complete idiot.

 i love teh fire that is in these new posters...... keeps me young..... i jut wish they would all show up at once... that way i dont have to yell and yell and yell.......LOL

i can see your point on the why were not seeing the cheap prices. i look at it this way. the general population will not see the cheap prices, it is about securing stragic reserves for the military machine. some next gen ground veh's that are in testing are hybrids, and some are fuel cell, but for teh most part military veh's are fuel chuggers, very low milage per gallon. and with the West being based off of big business which most have some type of tie in to the oil industry they will make a huge profit.


and one thing to keep in mind even though demand for oil is on the rise for fuel dont forget that oil is a required material for about 75% of all things man made. almost all teh lightweight materials require oil for production, machines require it to be lubed.... etc......

[Where is Hassan Nasrallah ?]

yeah Prom (can i call you prom?) ... alkanes are still a basis of our industry .. but we're using less and less ...

it's just that , basically, we want this oil so bad so we can drive our cars ... to go from a point to another. why can't we stay still ? :lol:
we GOTTA move ! !!

 

[Prometheus]

yes you may call me prom......... but that dont mean were going steady...