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A 400,000-barrel per day reduction in output would have a major impact on oil prices, said Tetsu Emori, chief commodities strategist at Mitsui Bussan Futures in Tokyo.
"Oil prices could increase by as much as $10 per barrel given the current environment," Emori said. "But we can't really say for sure how big an effect this is going to have until we have more exact figures about how much production is going to be reduced."
Originally posted by steve99
What I notice is the price always gos up and never back down. After Katrina the prices went up because of the damage. A large portion of that damage has to be fixed by now. But the prices still remain high. The prices will go up for the pipelline repair, but it will never come back down.
Originally posted by clearmind
which brings up a good point...is there a line in the sand for how much you pay for gas??
``Perhaps the ultimate answer to high how oil prices need to go before demand destruction occurs is derived from knowing when American consumers will stop buying gas guzzling sport utility vehicles and instead seek fuel efficient alternatives.
``Based on our analysis of gasoline spending and the economy noted above, we estimate that U.S. gasoline prices may need to exceed $4 per gallon.''
The bank also said its super-spike forecast range was conservative, noting declining U.S. gasoline spending as a proportion of GDP and consumer spending.
During 1980-1981, gasoline spending in the United States corresponded to an average 4.5 percent of GDP, 7.2 percent of consumer expenditures, and 6.2 percent of personal disposable income, Goldman said.
``Our new $50-$105 per bbl super spike range perhaps conservatively corresponds to gasoline spending in the United States that reaches 3.6 percent of forecasted GDP, 5.3 percent of consumer expenditures, and 5.0 percent of personal disposable income.
Originally posted by desert
As far as Washington stopping the speculation, probably not for the near future, as guess who is our Treasury Secretary--Goldman Sachs CEO Henry Paulson! And the President's Chief of Staff, Joshua Bolten, had worked for GS, also. I'm trying to figure out if there has been a corporation coup or a revolution in Washington.
Originally posted by hogtie
Need a little extra green for the upcoming elections?
[edit on 8/7/2006 by hogtie]
BP PLC said it will have to replace most of the 22 miles of so-called transit pipeline at Prudhoe Bay, which produces about 2.6 percent of the nation's daily supply including imports, or about 400,000 barrels a day.
The news sent the price of light, sweet crude oil up 2.22, or 3 percent, to settle at $76.98 a barrel Monday on the New York Mercantile Exchange, after peaking at $77.30 earlier in the day
Thus, we would not be surprised to see volume losses in the area of 5 percent to 10 percent.