Oil prices shoot above US$ 45.

[bemildred]

Oil prices shot up five percent yesterday and closed above US$ 45 a barrel after an early spurt of buying created momentum that forced investors anticipating lower prices to cover their bets

Analysts said there was no single spark that got the rally going. Instead, they suggested that the move higher merely signals the persistent skittishness in the market, stemming from strong demand, tight supplies and fears about instability in Iraq, Saudi Arabia, Nigeria and other key producing nations.

‘‘Not a lot has changed from when we were US$ 10 a barrel higher than where we are now,’’ said Tom Bentz, a broker at BNP Paribas Commodity Futures in New York. ‘‘And heating oil inventories are still on the low side,’’ he added. ‘‘At some point, the weather is going to get colder.’’

Light sweet crude for February delivery soared US$ 2.17 to settle at US$ 45.56 a barrel on the New York Mercantile Exchange. February heating oil futures surged 6.29 cents to US$ 1.2813 per gallon, while February gasoline ended 5.19 cents higher at US$ 1.2229 a gallon.

MercoPress

[Xipe Totec]

1. Oil Prices don't go down, they "plummet"

They also don't go up, they "steady"

At least according to the spin misters in the alleged media:

LONDON (Reuters) - Oil prices steadied on Friday after a five percent surge on Thursday as OPEC producers signaled their readiness to support prices by cutting supply.

http://story.news.yahoo.com/news?tmpl=story&cid=580&ncid=580&e=5&u=/nm/20050107/bs_nm/markets_oil_dc

Every time oil drops, even by pennies, it's pasted all over the front page. But when it goes the other way the silence is deafening.

:argh:

[bemildred]

2. That's one for you:

Oil prices steady after sharp rise

Oil prices have steadied as traders reassessed the market a day after a sharp rise on reports of a possible strike in Venezuela and signs that the Organisation of Petroleum Exporting Countries (OPEC) producers may cut output again.

New York's main contract, light sweet crude for delivery in February, fell 13 US cents to close at $US45.43 per barrel after surging by $US2.17 on Thursday.

In London, the price of Brent North Sea crude oil for delivery in February rose by 33 US cents to $US43.18 after jumping by $US2.34 a day earlier.

Mike Fitzpatrick at Fimat USA said traders are reluctant to push prices above $US46 and that the market appears to be in a range of $US40 to $US46 "until something fundamental happens" to change the picture.

http://www.abc.net.au/news/newsitems/200501/s1278639.htm

[amandabeech]

3. An arctic outbreak is expected at the end of next week over the plains.

It is unclear whether the icy-cold air will reach the northeast where oil heat is the most popular. Natural gas and propane are more popular in the midwest. Undoubtedly there will be a bit of a jump next week.

IMHO, the balance between supply and demand is so tight that any rumor of increased demand or decreased supply sets the market off. There really isn't much cushion: the Saudis are topped out of easily refined crude, and the other major suppliers seem to be going full blast. Meanwhile, demand increases in rapidly developing countries, as well as here in the most profligate consuming nation.

Reports are that Russia may peak in the next two years, and of course Matthew Simmons, energy investment banker to Cheney, says that the main Saudi field may peak soon too, in part due to over-pumping and overuse of water to maintain reservoir pressure.

Invest in a small car now. Expect a run on used Escorts in a couple of years.

[bemildred]

4. Yeah, I'm figuring energy and gas stuff should do well this Winter. nt

[amandabeech]

5. Yes, and keep an eye on the advance forecasts for summer.

This past summer was unusually cool. If we have an average or hot summer, natural gas will shoot through the roof.

I wish that we had a tenth of the Iraq war money to spend on weatherization of all our buildings. Can you imagine how much less we'd spend on heating and cooling?

Also, if we worked harder on finding good ways to store electricity, we could use all the generating capacity that sits idle during nights and weekends, as well as use more wind and solar. That way, we'd need fewer coal generating plants and could eliminate many of the inefficient natural gas peaker plants. A few Iraq war bucks would probably work wonders there, too.

[orpupilofnature57]

6. Trickie dick did his job, Shrub will do his. Who pays? Who gains?

Deregulation biggest blow to our future.