Turn Off Ads?
Page 1 of 3 123 LastLast
Results 1 to 15 of 36

Thread: Oil prices approaching $65 a barrel

  1. #1
    Maple SERP savafan's Avatar
    Join Date
    Jun 2000
    Location
    Cincinnati, Ohio
    Posts
    17,566

    Oil prices approaching $65 a barrel

    http://www.washingtonpost.com/wp-dyn...800157_pf.html

    By BRAD FOSS
    The Associated Press
    Tuesday, August 9, 2005; 1:55 AM



    WASHINGTON -- Oil prices jumped to a new high above $64 a barrel in Asian trading Tuesday, reflecting the market's persistent uneasiness about strong demand, tight supplies and a slew of threats to output around the globe.

    Traders pinned the latest rally on security concerns in Saudi Arabia, refinery snags in the United States and the continued rise of gasoline consumption in spite of soaring pump prices.

    The average nationwide price for regular unleaded gasoline jumped almost 8 cents last week to $2.37 a gallon, or 49 cents above last year, the Department of Energy said late Monday Still, government data show that gasoline consumption is up almost 1 percent at 9.1 million barrels a day through July, compared with last year.

    Oil analyst Marshall Steeves at New York-based brokerage Refco Group Inc. said oil and gasoline prices were likely to keep rising until there were signs of a significant dropoff in demand, or a sharp slowdown in economic growth. "We're clearly not there yet," he said.

    Light, sweet crude for September delivery rose as high as $63.99 a barrel on the New York Mercantile Exchange. The contract settled $1.63 higher at $63.94 _ the peak close since Nymex trading began in 1983.

    The previous closing high was $62.31, set Friday.

    But on Tuesday, oil prices pressed their gains, above $64. Midmorning in Singapore, crude on the New York Mercantile Exchange reached a high of $64.27 a barrel in Asian electronic trading before slipping to $64.06, up 12 cents.

    "The market clearly has the jitters," said Deborah White, energy analyst at SG Securities in Paris.

    Broadly speaking, those jitters are tied to worldwide consumption, which is expected to average more than 84 million barrels a day in 2005, leaving only about 1.5 million barrels a day of spare production capacity that could be called upon in an emergency to offset a prolonged supply disruption.

    Given such a slim margin for error in the supply chain, a large premium has been priced into every barrel of oil sold on futures markets. This premium takes into account the possibility of production outages stemming from hurricanes, terrorism and labor strife around the globe.

    Several factors put the market on edge Monday:

    _ The U.S. Embassy and consulates in Saudi Arabia were closed after authorities announced Sunday a security threat against U.S. government buildings inside the world's largest petroleum-producing country.

    _ Iran, OPEC's second biggest player behind Saudi Arabia, resumed uranium conversion activities at its Isfahan nuclear facility Monday, a step that Europeans and the United States have warned would prompt them to seek U.N. sanctions against the Tehran regime.

    _ A fire broke out at a Sunoco Inc.'s refinery in Philadelphia over the weekend. This followed a string of refinery fires and other snags over the past two weeks that have not severely diminished supply, but have nonetheless made oil traders nervous. "The fear factor is alive and well," said oil analyst Jim Burkhard of Cambridge Energy Research Associates.

    _ Suspected rebels launched renewed attacks overnight on pipelines in eastern India, leaving oil operations in the remote region in critical shape, a top oil official said Monday.

    The market has also kept a close eye on tropical storms in the Gulf of Mexico, fearing a repeat of last year's Hurricane Ivan, which damaged oil facilities and caused output in the region to drop for several months.

    Oil broker Tom Bentz of New York-based BNP Paribas Commodity Futures said there was no single event on which Monday's rally could be attributed. "We've just got a continuation of the uptrend here," he said. "And there's no sign that it will be stopping anytime soon."

    In other Nymex trading, gasoline futures gained 2.48 cents to $1.857 a gallon while heating oil rose 5.82 cents to $1.7894 a gallon.

    September Brent crude futures on London's International Petroleum Exchange gained $1.63 to settle at $62.70 a barrel.

    While oil prices are about 40 percent higher than a year ago, they are still below the inflation-adjusted peak set in 1981.

    ___

    Associated Press writers Edith Balazs in Budapest, Hungary, and Gillian Wong in Singapore contributed to this report.
    My dad got to enjoy 3 Reds World Championships by the time he was my age. So far, I've only gotten to enjoy one. Step it up Redlegs!

  2. Turn Off Ads?
  3. #2
    Hot Stove Season HotCorner's Avatar
    Join Date
    Jun 2003
    Location
    The 513
    Posts
    2,179

    Re: Oil prices approaching $65 a barrel

    And gas prices jumped $.26 in one day!! (From 2.23 to 2.49)

  4. #3
    Be the ball Roy Tucker's Avatar
    Join Date
    May 2001
    Location
    Mason, OH
    Posts
    12,138

    Re: Oil prices approaching $65 a barrel

    I got a taste of what the future might bring recently.

    We were on vacation in Destin FL about a week after Hurricane Dennis hit nearby. About 100 miles outside of the Pensacola/Destin areas, they had signs on the interstate saying gas was scarce further in and to fill up now (which we did). Evidently the evacuation of the area had emptied most stations and they were having a hard time catching up.

    After being in Destin for a few days, I went to get gas. Most of the major refueling stations like Shell, BP, etc. had none (they put plastic shopping bags over the pump nozzles). After talking to a guy at the condo, he said there was a little station nearby that had gas.

    There was a line of about 20 cars waiting to get gas. There were many panicky people that were runnig on fumes and desperate to get gas. I witnessed about 3 separate confrontations about where in line you were that featured big-time temper flares and much X-rated swearing. Some of it was racial. There were a couple times where I thought there was going to be gun-fire. To say it was ugly was the understatement of the year.

    I had the distinctly uneasy feeling I was catching a glimpse of the future.

    Pay attention to the open sky

  5. #4
    Harry Chiti Fan registerthis's Avatar
    Join Date
    Jan 2005
    Location
    Washington, DC
    Posts
    5,872

    Re: Oil prices approaching $65 a barrel

    Well, you gotta feel for the poor oil companies though. I mean, Exxon/Mobil only made $7.6 billion in profits--PROFITS--last quarter. How are you supposed to live on that?

    I'm also thankful that Bush's recent energy policy will do so much to negate the rising price of gas and...er, well, never mind.

    Glad I ride the subway!
    We'll burn that bridge when we get to it.

  6. #5
    breath westofyou's Avatar
    Join Date
    Oct 2000
    Location
    PDX
    Posts
    42,716

    Re: Oil prices approaching $65 a barrel

    Quote Originally Posted by Roy Tucker
    I had the distinctly uneasy feeling I was catching a glimpse of the future.

  7. #6
    Churlish Johnny Footstool's Avatar
    Join Date
    Sep 2001
    Location
    Olathe, KS
    Posts
    13,791

    Re: Oil prices approaching $65 a barrel

    The juice...the precious juice...
    "I prefer books and movies where the conflict isn't of the extreme cannibal apocalypse variety I guess." Redsfaithful

  8. #7
    Sham
    Guest

    Re: Oil prices approaching $65 a barrel


  9. #8
    This one's for you Edd Heath's Avatar
    Join Date
    May 2005
    Location
    Dayton Area
    Posts
    8,471

    Re: Oil prices approaching $65 a barrel

    time to ramp up the ethanol......
    Some people play baseball. Baseball plays Jay Bruce.

  10. #9
    breath westofyou's Avatar
    Join Date
    Oct 2000
    Location
    PDX
    Posts
    42,716

    Re: Oil prices approaching $65 a barrel

    Quote Originally Posted by Sham
    Yeah... but I forgot the question.

  11. #10
    Mod Law zombie-a-go-go's Avatar
    Join Date
    Jan 2004
    Location
    Miskatonic University
    Posts
    4,302

    Re: Oil prices approaching $65 a barrel

    You almost have to feel sorry for China. The country is starting to industralize, but with oil prices going up and up, and the big focus on alternative fuels, you wonder if just as they finally get themselves into gear the world will have turned away from fossil fuels, leaving them with all this (relatively) brand new, utterly worthless, oil/coal-fueled machinery.

    One also has to wonder if the rising demand of oil throughout the world wouldn't be so acute if it weren't for the Free Trade Agreements...
    "It's easier to give up. I'm not a very vocal player. I lead by example. I take the attitude that I've got to go out and do it. Because of who I am, I've got to give everything I've got to come back."
    -Ken Griffey Jr.

  12. #11
    Member
    Join Date
    Apr 2000
    Location
    Newport Beach, CA
    Posts
    8,066

    Re: Oil prices approaching $65 a barrel

    Quote Originally Posted by zombie-a-go-go
    One also has to wonder if the rising demand of oil throughout the world wouldn't be so acute if it weren't for the Free Trade Agreements...
    Please explain your comment vis a vie FTAs.

    Rem

  13. #12
    Member
    Join Date
    Apr 2000
    Location
    Newport Beach, CA
    Posts
    8,066

    Re: Oil prices approaching $65 a barrel

    Quote Originally Posted by registerthis
    I'm also thankful that Bush's recent energy policy will do so much to negate the rising price of gas and...er, well, never mind.
    There is very little, if anything, that can be done about gasoline prices in the short term. The biggest problem with the energy bill is that it still doesn't allow drilling in the arctic.

    Additionally, refinery capacity is needed to refine more oil into gasoline but it's been years since a new refinery was built in the US. A lot of NIMBY going on there----by a lot of people that clamor for more gasoline.

    Rem

  14. #13
    CELEBRATION TIME RBA's Avatar
    Join Date
    Apr 2000
    Location
    San Marcos, CA
    Posts
    13,984

    Re: Oil prices approaching $65 a barrel

    Oil/Gas it's all going to go up. No way around it. Yes, we need alternative sources of energy fast, but that's not going to happen while oil and gas is still reality cheap. We'll get alternative sources of enegy, but I hope America leads the way and fast.

  15. #14
    Member
    Join Date
    Apr 2000
    Location
    Newport Beach, CA
    Posts
    8,066

    Re: Oil prices approaching $65 a barrel

    Correct, RBA. The way out of this mess is to take a long-term approach and be willing/resigned to forking out more money while those approaches (hopefully) come to fruition.

    Rem

  16. #15
    Mod Law zombie-a-go-go's Avatar
    Join Date
    Jan 2004
    Location
    Miskatonic University
    Posts
    4,302

    Re: Oil prices approaching $65 a barrel

    Quote Originally Posted by remdog
    Please explain your comment vis a vie FTAs.

    Rem
    Okay, and this is just a random query, nothing I've given much thought to (which will rapidly become apparent as you read this );

    Through free trade agreements, the USA has made it more profitable for companies (noth foreign and at home) to produce goods in other countries for import to the USA. If there is an increase in production out in these other countries, particularly "Third-Worlders" (Cambodia? Taiwan?), you have to create infrastructure to support it. That means industrialization... greater industrialization means greater reliance on oil. Which means these other countries are taking oil supplies that were once surplus when the USA was the real "superpower consumer" of the black gold.

    Greater demand = higher prices. So if our FTAs contributed to the increasing industrialization of other countries, then we have ourselves to "blame" for higher prices at the pump.

    Addendum A: I'm not saying that improving the quality of life in other countries via industrialization is a bad thing, or that we should "keep them living in their mud huts so we can have cheaper oil... viva le Americana!"

    Addendum B: I'm also not saying that I really have any inkling what I'm talking about. Just making random, wild, spitballing guesses that those who know more about the subjects will probably thoroughly debunk.
    "It's easier to give up. I'm not a very vocal player. I lead by example. I take the attitude that I've got to go out and do it. Because of who I am, I've got to give everything I've got to come back."
    -Ken Griffey Jr.


Turn Off Ads?

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  

Board Moderators may, at their discretion and judgment, delete and/or edit any messages that violate any of the following guidelines: 1. Explicit references to alleged illegal or unlawful acts. 2. Graphic sexual descriptions. 3. Racial or ethnic slurs. 4. Use of edgy language (including masked profanity). 5. Direct personal attacks, flames, fights, trolling, baiting, name-calling, general nuisance, excessive player criticism or anything along those lines. 6. Posting spam. 7. Each person may have only one user account. It is fine to be critical here - that's what this board is for. But let's not beat a subject or a player to death, please.

Thank you, and most importantly, enjoy yourselves!


RedsZone.com is a privately owned website and is not affiliated with the Cincinnati Reds or Major League Baseball


Contact us: Boss | GIK | BCubb2003 | dabvu2498 | Gallen5862 | LexRedsFan | Plus Plus | RedlegJake | redsfan1995 | The Operator | Tommyjohn25