Excellent Commentary Iran worries = $15 Iraq premium = $20 ..$25 Gee...I just wonder who is responsible for these policies..... Govt est long term: $40 to $50 barring dollar devaluation....
Oil Prices Rise As IAEA Finds Iran Defiant Friday April 28, 1:24 pm ET Oil Prices Rise As IAEA Finds Iran Defiant of U.N. Security Council NEW YORK (AP) -- Crude futures rose Friday, as the International Atomic Energy Agency said Iran had enriched uranium and was in defiance of the U.N. Security Council. Iran, OPEC's second-largest oil producer, has said it seeks the technology only to generate power, but other countries, including the United States, believe it is aimed at creating weapons. Iran has also said it does not intend to halt oil exports as a political tactic, but some traders fear it's a possibility if the dispute escalates. Light, sweet crude for June delivery rose 68 cents to $71.65 a barrel in late morning trading on the New York Mercantile Exchange. June Brent crude on the ICE futures exchange gained 78 cents to $71.69 a barrel. Prices began rising earlier Friday as the deadline approached, and Iran's hard-line president, Mahmoud Ahmadinejad, offered no hints of conciliation, vowing that "no one" could make his country give up nuclear technology and that the country "won't give a damn" about any U.N. resolutions concerning its nuclear program. On Thursday, oil prices had fallen for the fourth straight day after China's interest rate increase and the World Bank tentatively resolved a dispute with Chad, which had threatened to shut off an oil pipeline. Traders speculated that Chinese oil demand might slow after the nation's central bank said it would raise benchmark one-year lending rates to 5.85 percent from 5.58 percent. China is the world's second-largest oil consumer after the United States. Also helping to cool prices slightly was the easing of worries about U.S. gasoline supplies ahead of the peak summer-driving season. The U.S. Energy Information Administration on Wednesday reported a sharp recovery in American refinery operations, and President Bush directed the Environmental Protection Agency to grant fuel requirement waivers to states experiencing spot shortages amid a transition to a new blend of motor fuel. Gasoline futures rose 3.61 cents Friday to $2.108 a gallon, while heating oil rose 1.93 cent to $2.005 a gallon. Natural gas rose 5.5 cents to $6.86 per 1,000 cubic feet. Strong global demand for crude, limited spare production capacity and geopolitical uncertainty look set to keep a high floor under oil prices, which are about 38 percent higher than a year ago.
Oil shortage.....Oil shortage.....Ooooo, the sky is falling.....The sky is fallling..... Just wanted to check in and say I'm still able to purchase all the gasoline I am willing to pay for. Oh, don't get me wrong, there is an "oil crisis". But, it's not due to a shortage (in the classic sense). It's due to manipulation, so that prices could be jacked up again; i.e.---History repeating itself. So, don't worry. Hop into your SUV and have a great weekend! Just remember, if you want to play, you have to pay. But, your "friendly" gas stations will be happy to supply you.
New oil shock ahead as $100 spike looms Oliver Morgan and Heather Stewart Sunday April 30, 2006 The Observer The growing international crisis over Iran's nuclear programme could trigger a catastrophic oil price spike, sending crude prices over $100 a barrel, senior Wall Street analysts are warning. With prices already at around $72 a barrel, such an increase could mean drivers facing prices of 110p a litre on forecourts, according the the Petrol Retailers Association. Last week Lord Browne, chief executive of BP, warned that prices could rise to £1 as he unveiled bumper $5.27bn profits for the first quarter. Shell is also expected to announce close to record numbers next week, with analysts expecting profits around $5.57bn, driven largely by the oil price. A single political shock could be enough to send oil markets into panic, said Adam Sieminski, senior energy economist at Deutsche Bank in New York. 'If we have one more big problem we are going to have triple-digit oil prices.' Sieminski points to confrontation with Iran, a worsening of the situation in Iraq or a recurrence of devastating hurricanes in the Gulf of Mexico as potential catalysts for a major rise. Prices rose by as much as $1.20 in late trading on Friday after the United Nations inspector Mohamed El Baradei said Iran had not complied with demands to disclose the extent of its uranium enrichment programme. Iranian President Mahmoud Ahmadinejad later said he 'did not give a damn' about the UN's opinion. In a report, Sieminski argues that with the world consuming some 85 million barrels of oil a day, a supply disruption of 2 million barrels a day (60 per cent of Iran's exports) 'can only be rebalanced through an extraordinary rise in prices.' But he believes any breaching of the $100 level would be short-lived, and that prices would fall to between $30 and $60 as increased investment brings new production and refining capacity on stream in oil-producing nations. Mary Novak, managing director of energy services at consultants Global Insight, said Iran would not need to turn off the taps completely - even if it shut off just a 10th of its 3 million barrels a day of exports, the impact would be dramatic. 'With the situation we have, 300,000 barrels a day would drive prices up significantly,' she said, adding that with the global economy growing more quickly than expected this year 'demand is still expanding and supply is having trouble catching up'. High crude prices have pushed gasoline prices up to $3 a gallon in the US, where President George Bush has described the rise as a tax on motorists, and Republican senators have promised measures to abate prices, including an investigation of oil company tax payments. The approach of the US driving season has combined with the hangover effect of last year's hurricanes on US refining capacity to underpin current price levels. Refineries in the US have increased their spring maintenance shut-downs for several weeks, to deal with damage from the autumn. At the same time, more stringent environmental controls on gasolene content led to some US petrol stations running dry on Friday. New rules, which come into force this year, have mandated higher ethanol content in vehicle fuel; but since ethanol cannot be pumped through pipelines, a shortage of infrastructure meant that in some states, including Texas, fuel was not getting to the pumps. Manouchehr Takin, oil analyst at the Centre for Global Energy Studies in London said 'Every year, approaching the summer driving season in the US, the market gets hyped, and the prices go higher, because of the fear of a shortage.' Ray Holloway, of the Petrol Retailers' Association, said that 'such a hike would be critical in the second quarter of this year, if we went to $100 a barrel in that period, you could see unleaded petrol at 110p a litre.' Average prices this weekend were 95p a litre. The stand-off with Iran is one of several factors that could cause a significant supply disruption. Ethnic and tribal disputes in Nigeria have resulted in the loss of 500,000 barrels a day. Output in Iraq, potentially the world's second-largest exporter, is still well below pre-war levels. There are also concerns among traders about supplies from Venezuela and Russia because of internal politics. High prices have advanced rapidly up the political agenda in the US, where Republicans are trailing in the polls ahead of mid-term elections. Republican senators led by majority leader Bill Frist, have proposed a series of measures including the repeal of tax incentives to oil companies intended to make them invest in the Gulf of Mexico and measures to increase refinery capacity. The issue has also prompted a return to the debate over opening up the unspoilt Arctic National Wildlife Refuge in Alaska to drilling by oil companies. President Bush also called for an investigation into possible price manipulation, and for new deposits into the US strategic petroleum reserve to cease. http://observer.guardian.co.uk/business/story/0,,1764412,00.html
Disagree mat. yes, we have 40 years of oil left...that means until the last drop is gone at current consumption rates. meaning evenry minute it gets scarcer and scarcer...meaning the "engergy crisis" start WAY before it runs out...it has already started. why? becuse now we are convinced we are screwed and there are no real alternatives. i persanlly thing the sudden rise in prices is due to manipulation of prices...but that is another discussion entirely. we DONT have pleanty, and we DONT have a good alternative...THAT is the problem. as for hydrogen...very volitile and VERY hard to contain. NOT a viable long term energy source. read about it. very dangerous stuff, hard to manufacture and transport. do a google seacrh for"life after the oil crash" if you believe it 100% or not...it will sure make you think.
we must be nearing a top when we see doom and gloom articles - even if well-written and reasoned! Of course THIS TIME COULD BE DIFFERENT! (famous last words) IcE
are you a shill for the parasite oil terrorists - uh, I mean the oil "industry" with all these b.s. posts ?! U must be! Uh dubW u dummy- what price manipulation????? This is the fking FREE market comprised of your maggot oil industry friends and cronies who are bleeding the remaining honorable people living and working honest jobs in the USA and threatening to destroy the airline industry! But hey-- we can all ride bikes like in China. Its not that far from Texas to Washington! Wait- I forgot- the moron running the Country doesn't have to pay for jet fuel or gasoline! SURE! A free market! Demand must go up 5%++ a month in the world judging by move in the oil prices!
actually this country is the owner of the largest oil deposits in the world.....it is in colorado and utah........shale oil......canada with their tar sands........but all carbon poison.....let's get to alternative fuels and then party for foriegner is over......
Iran is a paper tiger. Too many âeducatedâ Western elites are useful idiots to Iranâs president, who knows it and who stages public appearances to take advantage of it. Mahmoud simply creates hysteria to hype the price of oil, since oil is Iranâs cash machine. Hedge funds and fuel-dependent industries listen to these useful idiots. Pathetic. Any chimpanzee can tell Mahmoud is a pussy.