NEWS: Oil Hits $50 a Barrel, page 1

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Topic started on 27-9-2004 @ 06:16 PM by Nerdling

The price of Oil reached a record high today hitting the $50 per barrel mark earlier. The price increased was caused by the news from Nigeria that put the level of global oil production into doubt. These worries in a time where the global supply and demand of Oil is erratic at best has left many forecasting higher prices to come.

CNNMoney
The U.S. light crude front month contract rose a further 36 cents a barrel in after-hours electronic trading to hit $50, its loftiest level in the 21 years of trade on the New York Mercantile Exchange. London Brent, the benchmark for European crude imports, settled 60 cents higher at $45.13, after hitting a new record of $46.28 a barrel.

Please visit the link provided for the complete story.

The Bush Administration commented by saying they were monitoring the situation closely and did not plan to tap into the Strategic Petroleum Reserve at this time. However, this could change as Investment bank Morgan Stanley released reports that the price of Oil could hit $61 a barrel in the forseeable future which would cause a price hike for consumers

"We now think that (U.S.) crude oil could reach $61 before a meaningful sell-off occurs. Long-term price patterns point to even higher prices."

Morgan Stanley Spokesman.

Growing concerns in Nigeria caused this price bump which pushed the levels to the magic $50 mark after months of sitting on the edge. Global supplies have risen strongly since January but ever increasing demand is putting the strain onto suppliers. The militants in Nigeria are threatening the 2.5 Million barrels a day supply which many African nations rely on. Additional crude released by OPEC has failed to make a difference in prices.

[edit on 29-9-2004 by Nerdling]

reply posted on 27-9-2004 @ 06:21 PM by RANT

U...S...A! U...S...A!

Good job everybody!

Who's in for $60 by WINTER?

reply posted on 27-9-2004 @ 06:24 PM by Valhall

hmmm....I'm thinking RANT...

**valhall strokes the keys on her vintage 85 adding machine**

**divide by 2 times 1000 plus the remainder of the expense on**

nope...not till February.

reply posted on 27-9-2004 @ 06:27 PM by Nerdling

I'm quite troubled by the fact that it was supposed to hit $50 in November. This is still September

reply posted on 27-9-2004 @ 06:37 PM by Gools

I'll use the Matthew Simmons number of $182/barrel (which he says is where oil should be priced at present - source) and I'll guess that it will reach that by mid-2005.

I've put over 600km on my bike this summer.

I'm ready for it!

reply posted on 27-9-2004 @ 06:47 PM by marg6043

What do you expect, Iraq oil is not flowing like US will like it to be, with all the problems in Iraq with the oil pipes bombing we are getting short.

US depend on Oil from Iraq too, and so other countries.

If things don't get better and oil in Iraq does not start flowing we will indeed reach the 60 mark, I am glad my husband did not got into one of those big truck like I wanted him to do during the summer.

I am happy with my littler car it only cost me 19 dollars to fill it. (It was a time in which it only cost me 10 dollars but those days are gone)

reply posted on 27-9-2004 @ 06:57 PM by TexasConspiracyNut

Well considering the Gulf of Mexico hasn't produced any oil in 11 days because of Ivan and China is using more of the worlds supply, I think 50 dollars is about right. Adjusted for inflation it is not as bad as the Arab Oil Embargo of the 70's. In todays dollars the price then would have been about 78 dollars.

reply posted on 27-9-2004 @ 06:58 PM by Nerdling

Originally posted by marg6043
What do you expect, Iraq oil is not flowing like US will like it to be, with all the problems in Iraq with the oil pipes bombing we are getting short.

Actually, If you read the article you'll see that Iraqi production is at its highest level.

reply posted on 27-9-2004 @ 07:00 PM by MacKiller