Oil rebounds on word Israel practiced Iran attack Friday June 20, 10:17 am ET By John Wilen, AP Business Writer Oil prices bounce back after Pentagon says Israeli exercises were demonstration to Iran NEW YORK (AP) -- Oil futures rebounded Friday as Pentagon officials said a large scale Israeli military exercise in the eastern Mediterranean early this month was intended in part as a demonstration of Jerusalem's ability to attack Iranian nuclear facilities. Prices also rose as investors reconsidered whether Thursday's sharp declines, which were based on an announced fuel price hike in China, were merited. At the pump, gas prices rose slightly. Light, sweet crude for July delivery rose $3.59 to $135.52 a barrel on the New York Mercantile Exchange, recovering much of the $4.75 that the contract lost Thursday after China announced it was raising fuel prices. While Thursday's news from China reduced investor concerns about surging global demand for oil and fuel, Friday's news from Iran injected fresh supply worries into the market. Still, analysts suggested both price moves were overreactions. "Whenever you get Israel and Iran within the same sentence, you have a price reaction," said Jim Ritterbusch, president of energy consultancy Ritterbusch and Associates in Galena, Ill. But price moves based on the possibility of conflict between the two nations are likely to be short-lived, analysts believe. An actual attack would be a different matter entirely, and could send prices sharply higher. Meanwhile, several analysts say China's fuel price hike could actually increase the nation's crude demand. Many Chinese refiners have resisted producing fuel in recent months, as the retail prices they're allowed to charge were not high enough to cover the costs of their main raw ingredient, crude oil. Now that they can charge more for fuel, Chinese refiners may actually produce more diesel and gasoline, using more crude oil in the process. "The increase in prices can be seen ... as an attempt to reduce shortages through encouraging domestic supply," said Barclays Capital analyst Kevin Norrish in a research note. "Indeed, it could well be that case that effective demand actually rises, dependent on the current level of shortages." Some analysts also questioned whether the modest price hikes will actually curb Chinese demand for fuel. "It remains uncertain whether this fuel price hike in China will really significantly impact demand growth in China in a negative way," said Victor Shum, an energy analyst with Purvin & Gertz in Singapore. "This (was) a knee-jerk overreaction by the market." Also supporting prices Friday were reports that Nigerian oil workers have decided to strike at a Chevron Corp. facility beginning Monday, a move that could further cut oil supplies from Africa's largest producer. The dollar fell against the euro Friday, putting more upward pressure on oil prices. Many investors buy commodities such as oil as a hedge against inflation when the greenback weakens. A falling dollar makes oil less expensive to investors overseas. The July crude oil contract expires at the end of trading Friday; trading in expiring contracts is often volatile. At the pump, meanwhile, gas prices inched 0.2 cent higher to a national average of $4.075 a gallon Friday, according to AAA and the Oil Price Information Service. Gas prices have drifted lower this week since hitting a record $4.08 a gallon on Monday. Gas prices will likely hold steady near current levels, as long as oil continues trading in its current range between roughly $132 and $138, analysts say. Diesel fuel, used to transport the vast majority of the world's food, consumer and industrial goods, fell 0.5 cent overnight to a national average of $4.786 a gallon. Diesel reached a record $4.797 on Monday. In other Nymex trading Friday, July gasoline futures rose 7.56 cents to $3.4282 a gallon, while July heating oil futures rose 10.59 cents to $3.8194 a gallon. July natural gas futures rose 25.9 cents to $13.12 per 1,000 cubic feet. In London, August Brent crude rose $3.59 to $135.59 a barrel on the ICE Futures Exchange. Associated Press Writers Pauline Jelinek, in Washington, and George Jahn, in Vienna, Austria, contributed to this report.
Oil prices rising after steep fall Thursday June 26, 6:41 am ET By Pablo Gorondi, Associated Press Writer Oil prices rise to $135 after sharp decline on increase in US oil stockpiles Oil prices moved higher Thursday as buyers moved back into the market a day after a report showed U.S. stockpiles of oil and fuel were larger than expected. Light, sweet crude for August delivery was up 50 cents to $135.05 a barrel in electronic trading on the New York Mercantile Exchange by midday in Europe. http://biz.yahoo.com/ap/080626/oil_prices.html
Oil prices pass $143 a barrel; US gas hits high Monday June 30, 8:33 am ET By Pablo Gorondi, Associated Press Writer Oil rises above $143 a barrel, gas hits new high on tensions in the Middle East Oil prices surged past $143 a barrel for the first time ever Monday, and the price for a gallon of gas hit an all-time high in the United States. Supply concerns and a fragile global economy continue to drive the price of oil to new highs, as well as continued tensions in the Middle East. "The main factors behind the rise today are the U.S. dollar remains fragile and geopolitical tensions, particularly surrounding Iran," said David Moore, a commodity strategist at the Commonwealth Bank of Australia in Sydney. "That's unsettling for the oil market." http://biz.yahoo.com/ap/080630/oil_prices.html
Oil prices rise to record highs above $144 Wednesday July 2, 3:26 pm ET By Adam Schreck, AP Business Writer Oil prices advance to new highs above $144 after report shows supplies fell more than expected NEW YORK (AP) -- Oil prices shot to new records above $144 a barrel Wednesday as the government reported a bigger-than-expected drop in U.S. supplies and the threat of conflict with Iran weighed on traders' minds. Light, sweet crude for August delivery rose as high as $144.13 on the New York Mercantile Exchange shortly after the market closed. The contract also notched a new closing record, settling at $143.57 -- a full $2.60 above the previous high from a day earlier. The Energy Department's Energy Information Administration said crude oil supplies fell by 2 million barrels last week, or about 800,000 barrels more than analysts surveyed by the energy research firm Platts predicted. http://biz.yahoo.com/ap/080702/oil_prices.html
Reuters Oil surges to record high above $146 Friday July 11, 8:42 am ET LONDON (Reuters) - Oil jumped more than 3 percent to a record high above $146 a barrel on Friday, boosted by concern of threats to supplies from major oil exporters Iran and Nigeria. U.S. crude hit $146 a barrel for the first time and later rose as high as $146.90. (Reporting by Alex Lawler, editing by William Hardy)
Oil will collapse JUST LIKE THE FINANCIALS. There is little demand left when the world is in a recession. OIL WILL CORRECT JUST LIKE THE DOT COMS PRIVATE EQUITY FINANCIALS and HOUSING. Oil at 146 now, in 12-18 months less than $100.