Posted on 03/07/2011 3:42:54 PM PST by Tolerance Sucks Rocks
NEW YORK – Oil prices continued to set new post-recession highs Monday as forces loyal to Moammar Gadhafi pounded rebels near a key oil port in Libya. It's unclear how long the country's oil exports will be cut off, and traders prepared for a worst-case scenario in which world supplies would be under pressure for months.
Benchmark West Texas Intermediate crude for April delivery gained $1.02 to settle at $105.44 per barrel on the New York Mercantile Exchange. The price almost hit $107 per barrel earlier in electronic trading, the highest level since Sept. 26, 2008.
In London, Brent crude fell 93 cents to settle at $115.04 per barrel.
The rise in oil is driving U.S. gasoline prices to levels that weren't expected for at least another month. Pump prices have jumped an average of 39 cents per gallon since the Libyan uprising began in mid-February, forcing motorists to pay an additional $146 million per day for the same amount of fuel. The national average hit $3.509 per gallon on Monday, according to AAA, Wright Express and Oil Price Information Service.
Libya, which sits on the largest oil reserves in Africa, has been engulfed in a four-week rebellion as militants try to oust Gadhafi after 41 years in power. Officials in the country say oil fields continue to operate, but daily exports of 1.5 million barrels could be cut off for some time.
On Monday, Libyan warplanes launched more airstrikes on rebel positions around the Ras Lanouf oil port as forces loyal to Gadhafi tried to keep rebels from advancing on his stronghold in the capital, Tripoli.
OPEC has ramped up production to make up for the loss of Libyan crude...
(Excerpt) Read more at news.yahoo.com ...
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Did you hear? Bets are that Speculators will have oil at $200 when the “Day of Rage” in Saudi Arabia hits this week! Get ready folks!
Did you hear? Bets are that Speculators will have oil at $200 when the “Day of Rage” in Saudi Arabia hits this week! Get ready folks!
A person claiming to be Daffy’s cousin is now saying that Daffy is Jewish by birth. Wonder what that little bombshell will do to his already dwindling Libyan Moose support. I just hope they don’t succeed in incinerating the oil fields before this cat and dog fight is over. If we think the USA would be in trouble, China would be in even worse trouble.
Who’s raging, and about what? It seems to me that every day is a day of rage for the Moose.
Why, everything was going to be powered off of sunshine and unicorn farts!
I noticed the prices at the cheapie gas station in my neighborhood today.
$3.89 regular
$3.99 medium
$4.09 premium
Six cent rise since yesterday.
I think it’s the Shiites Rage on March 11. - Speculators will go wild! Gas will shoot up fast!
Cheapest around here is $3.49
Pray tell what is causing the price of crude to rise then?
Speculators anticipate price spikes and buy before they happen. They’d be morons if they didn’t.
If anything they affect demand but I doubt its enough to cause a serious spike.
I so wanted to buy oil when it fell below $40/Bbl but I couldn’t get liquid very quickly. Anybody who bought there KNEW, just KNEW oil would have to double in short order and could laugh all the way to the bank. I didn’t think it would go back to $100 this soon, and I would have dumped it all at $80, but yes, speculators could push oil way, way up from here. Your analysis seems reasonable that oil could peak near $200, pushed up by speculation.
Scary.
The last time, people were trading in one year old full sized pickup trucks for Priuses, and just eating that $10,000 depreciation. I wonder if this time they will just park the trucks on the lots and walk away.
What? I thought baby Bush was supposed to fix all that. Didn’t the liberals claim he wass trading blood for oil? Weren’t we supposed to get free oil from Kuwait and nearly free oil from Iraq? What’s up with that? I want my blood for oil.
Add this idiot has done everything to reduce the supply of oil.
In 2008, oil prices skyrocketed on a commodities bubble/speculation. People were scared of the economic conditions and wanted a safe haven to park money. That started a rise in oil prices that speculators pounced on, driving prices to $145/barrel.
This time, oil is up mosly on fundamentals.
Obama has a moratorium on oil drilling in the gulf. China and India are accelerating their use of oil. Middle East revolts and demonstrations are scaring buyers into positioning themselves in case of a supply shock. This extends even to Saudi Arabia.
Oil prices are probably reasonable in light of all of these fundamental problems and the rold of speculators is probably not that large at this time. But I think they smell blood in the water. That is how I can see the price of oil going from a market reasonable price of $100/barrel at this time, to a very bubbly ridiculous price of $200/barrel with no relation to market fundamentals.
Now, if the Straights of Hormuz are blockaded, that is different. Or if the King of Saud is overthrown, then OK. As long as we are only worried about Libia and a small moratoriam on drilling in the Gulf, then no way oil should be at $200. But all of the risks added up adequately justify a market price of $100/barrel to me.
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