Oil Prices Surge As Panel Says US Must Do More To Prevent Offshore Disasters

[Purveyor]

Source: Associated Press

NEW YORK, N.Y. - Oil prices surged Tuesday after a presidential panel investigating the Gulf of Mexico oil spill said the oil industry and the government need to do more to reduce the chances of another large-scale disaster.

Benchmark oil for February delivery rose $1.80, or more than three per cent, to US$91.05 a barrel in midday trading on the New York Mercantile Exchange.

The panel's recommendations included increasing the liability cap for damages when companies drill offshore; increasing budgets and training for the federal agency that regulates offshore drilling and lending more weight to federal scientific opinions in decisions about drilling.

The report raised speculation that the government might slow down production in the Gulf of Mexico, which would lead to higher prices. "As it stands right now, this is a little bit of a concern in the oil patch," PFGBest analyst Phil Flynn said.

Oil prices also got a boost from another blast of cold and snow headed into the Northeast. Winter storm warnings were posted as the third snowstorm in less than three weeks took aim at the New York City area. Prices rose for heating oil, which is used mostly in the Northeast to warm older homes and commercial buildings. The price of heating oil has risen more than 4 per cent this week.

Read more: http://www.brandonsun.com/business/breaking-news/oil-rises-to-near-90-in-europe-as-traders-eye-repairs-on-damanged-alaska-crude-pipeline-113266244.html?thx=y

[SpiralHawk]

1. There's your freaking Republicon Family Values Economics at work

Greed, greed, greed.

"More more more more more more for us." - RepubliCorp Oil Profiteering Division (R)

[social_critic]

2. Winter storm raised prices, not the government report

These goofballs don't get it, oil prices move with the weather and the oil in storage. Government reports may move oil company stocks, but not oil prices.

[greiner3]

3. Uh;

Moving oil prices move oil company stocks. One storm or a couple storms in the Northeast US is par for the year.

It's the perceived future regulations that follow from this report that has the oil and gas futures jumping.

[w4rma]

4. Or they want to scare people into working against protecting our environment from robber barons.(nt)

[goforit]

8. ROFLMAO!!!

Hilarious!

[lib2DaBone]

5. The Wall Street boys and their derivatives......

Oil speculation.. derivatives... hedge funds... same old ENRON gang... same old story.... Mr. Obama LOVES Wall Street. Nothing is going to change.. ever...

[defendandprotect]

6. US needs to unleash alternative energy and wave goodbye to OIL and its WARS....

[Javaman]

10. Naaa, we will just find something else to keep the people in fear and maintain the MIC. nt

[Arctic Dave]

7. Oil didn't surge because of the report jackholes.

It is response to losing the oil from Alaska due to shutting in the pipeline because of the leak at Pump 1.

Nice try though placing blame on regulations and not shitty maintenance of infrastructure.

[KansDem]

9. Okay, let's see if I understand this...

BP tells US to "back off" during Gulf eruption. For several months we wait for BP to cap well. Now a presidential panel tells us we will be paying more at the pump because "the government" has to do more to reduce the chances of another disaster.

Excuse me? Why the hell are we paying more because our government stood back and let private enterprise handle its mistake?

From now on, I want the US government to intervene immediately to cap erupting oil wells and to Hell with private enterprise. I want our government to say "Fuck you, BP (or whomever) We're stopping this disaster NOW so the American consumer won't be paying more down the line! SAVVY??!!!"