NEWS: Oil prices rise above $54, page 1

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Topic started on 12-10-2004 @ 07:30 AM by AceOfBase

Oil prices have yet another new high today, pushing above $54.

There are many events right now that are increasing the oil prices.
Unions in Nigeria launched a strike, about 200 workers in Norway are striking, there was a disruption in production in the Gulf of Mexico recently because of the hurricanes and of course there is the continuing war in Iraq and threats of air-strikes against Iran's nuclear facilitates which could lead to something much bigger. All of this is happening at a time of increasing consumption from countries like China.

timesofindia.indiatimes.com..." target="_blank" class="postlink">Times On-Line
LONDON: World oil prices stormed above 54 dollars for the first time Tuesday as strikes in Nigeria and Norway raised worries about possible supply shortages during the northern hemisphere winter.

The price of reference light sweet crude for delivery in November rose 40 cents to 54.10 dollars a barrel in electronic trading on the New York Mercantile Exchange, the highest in the contract"s 21-year history.

"A lot of people in the market are talking about 60 dollars now," said US-based Refco analyst Marshall Steeves.

Please visit the link provided for the complete story.

The production increase promised by the Saudis is not enough to reduce the prices at this time as all they have to offer is high sulphur crude that western refineries are shunning.

This price increase comes at a bad time for President Bush, who is running for re-election. These high prices can weigh down on the stock market and on the economy as a whole.

Related News Links:

Oil Prices Wiping Out Airline Profits
Saudi Arabia bitter over global taste for sweet and not sour oil
Crude Oil Futures Prices chart

Related AboveTopSecret.com Discussion Threads:
Venezuela raises oil drilling tax from 1% to 16.6%

[edit on 12-10-2004 by AceOfBase]

reply posted on 12-10-2004 @ 09:21 AM by kix

this is catastrophic, if this situation continues airlines will go broke, and maybe we will have a recesion (world wide- a mild one ).

Even nations producing oil have problems with such a price because it elevates other materials price for operation...so its a no win situation really....

for those who think bussines as usual is the way to go on todays economy, open your eyes! its time for change.

reply posted on 12-10-2004 @ 09:24 AM by SpittinCobra

Movin on up, movin on up, to the eastside, with a highrise apartment...........

Someone is getting PAID, 7 to 13 dollars of that IS Fear based.

reply posted on 12-10-2004 @ 09:25 AM by flycatch

The world will not run out of oil but the cost of obtaining it will drive up the price per barrel. We in the U.S. were and are still paying a low price per gallon of gasoline compared with the rest of the world. If you don,t believe this, substract taxes and see what refined petroleum oil really cost us.

[edit on 12-10-2004 by flycatch]

reply posted on 12-10-2004 @ 09:37 AM by worldwatcher

People in big cities which have mass transportation systems won't quite feel the same effect of these higher gas prices unless they choose to drive on the weekends. But others in more rural areas or states like Florida where mass transit is a joke, will find it harder to keep their tanks filled. I can say that I have altered my driving habits due to these higher prices and avoid long trips unless absolutely neccessary. It's going to be a rough winter and Christmas season for most of us, if these high prices continue.

reply posted on 12-10-2004 @ 10:12 AM by TCR

This will make for an expensive winter unless I'm mistaken. Correct me if I'm wrong, but demand will significantly increase in the coming months, due to heating requirements. Prices will climb even more due to this added consumption. All other things remaining equal that is... Am I correct in this assumption?

reply posted on 12-10-2004 @ 02:55 PM by veritas93

Originally posted by TCR
This will make for an expensive winter unless I'm mistaken. Correct me if I'm wrong, but demand will significantly increase in the coming months, due to heating requirements. Prices will climb even more due to this added consumption. All other things remaining equal that is... Am I correct in this assumption?

That's true if you live in a part of the world that actually experiences winters lol.

reply posted on 12-10-2004 @ 03:08 PM by Mainer

Originally posted by TCR
This will make for an expensive winter unless I'm mistaken. Correct me if I'm wrong, but demand will significantly increase in the coming months, due to heating requirements. Prices will climb even more due to this added consumption. All other things remaining equal that is... Am I correct in this assumption?

It'll be a tough winter. A couple of sweaters, some good insulation and the wife's soup and we will be just fine.

reply posted on 12-10-2004 @ 03:17 PM by marg6043

I hate the south for its muggy wheather but I welcome the nice milder winters.

And while we are paying high prices on gas at the pump somebody is sure making a killing on it and it aint you or me

reply posted on 13-10-2004 @ 12:11 AM by tututkamen

Gosh, I hate to appear stupid however here goes. Could somebody please explain to me why the price of crude is so high? And how high will it go. Any insight would be appreciated.

Thanx,

TUT

reply posted on 13-10-2004 @ 12:28 AM by CazMedia

While the price of a barrel of crude is tied to the cost of gasoline, another big factor in the retail price for gas is refining capasity. As it stands now, the production of gasoline is about maxed out, while demmand is increasing. lower supply+higher demand=higher cost goods.

While the crude oil barrel price is going up and will effect fuel costs...if the terrorists really wanted to screw ther world, they would go and destroy a few of the larger refinement facillities and sit back and watch as the gas price soars.

another effect of high crude prices that is not as noticable as fuel prices would be increased costs in everything that is petrolium based....plastics, lubricants, and anything that uses some kind of refined crude. What are these indirect ramifications?

reply posted on 13-10-2004 @ 01:50 AM by tututkamen

Thanx Caz,

Do you have any opinions or thoughts or insights on where the price will be in December?

reply posted on 13-10-2004 @ 02:17 AM by deaf fences hit

Because of this, airlines are raising their fuel surcharges aswell it seems:

Qantas flags fuel surcharge

The runaway oil price is again taking its toll on airlines, with airfares set to increase as the carriers address their escalating fuel bills.

Qantas Airways Ltd says it will raise the fuel surcharge on ticket prices for the second time since the levy was introduced five months ago.

"There has already been talk of some sort of profit warning from the airline stocks on the back of the oil price and it looks like we are seeing the smoke," said Marcus Padley, of the Marcus Today financial newsletter.

Fuel surcharges are fast becoming a significant part of the average fare, Mr Padley said.

reply posted on 14-10-2004 @ 12:58 PM by AceOfBase

Another new high today.
It rose to $54.75 before retreating a little.
It's $54.45 right now as I'm posting this.
The DOW has been pushed down over 80 points so far to 9916

Reuters
U.S. light, sweet crude (CLc1: Quote, Profile, Research) leaped $1.11 a barrel to $54.75 a barrel, up more than 65 percent so far this year and a rapid rebound from a brief bout of profit-taking by big-money funds earlier this week.

London Brent crude for November (LCOc1: Quote, Profile, Research) rose 85 cents to $50.90 a barrel.

World prices have surged on fears that the United States is running out of time to build winter fuel supplies, due in part to the impact of Hurricane Ivan, which damaged oil operations in the Gulf of Mexico last month.