NEWS: Oil Hits $50 a Barrel

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.



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]

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



Good job everybody!

Who's in for $60 by WINTER?

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.

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

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!

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)

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.

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.

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

Well, we all know what that means.

A heck of a lot more profit. I wonder what they are doing with all that hard-earned cash

Originally posted by Nerdling

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

Actually I got that from the news the attacks to the pipes in the pass weeks in Iraq are being blame for part of the problem also, and I got it from the afternoon news in CNN is funny how they change the news.

The problem is that the world needs more oil, China especially with is's economic boom, and there is only a certain capacity that OPEC can produce and they are already pumping at (almost) maximum.
High oil price will effect everything because the daily goods are transported with trucks, airplanes, trains etc. and they all run on gasoline(oil) and when they need to pay more for the gasoline, they will must increase the transportation costs and from that, the price of goods start to go up.

Also, there are a lot of products that are made using oil so cerntainly the price of those products will also rise. Also the manufacturing costs will rise because they need energy to produce goods and energy is made of oil(nuclear etc. also)

Production in the world's 2 largest oil fields rapidly coming to an end - SOON

You keep saying this, but haven't answered why you think its true. You just posted a link to a thread in which you don't properly explain your case, and in which you link to a previous thread in which you make other claims, and at the end of that you link back to the thread you just linked to above.

What is the evidence that oil production will stop in these two fields?