Oil prices jump above $41 a barrel

[arcos]

Oil prices jump above $41 a barrel

NEW YORK - U.S. oil prices hit an all-time record high Thursday amid concerns over thin gasoline supplies ahead of peak demand driving season and tight global crude stocks.

Benchmark U.S. light crude futures for June delivery climbed to $41.17 a barrel in after hours trade — the highest level since October 1990 following the Iraqi invasion of Kuwait. It settled the regular session up 31 cents to $41.08, while London Brent gained 54 cents at $38.49 a barrel.

Dealers said crude rally’s was fueled in part by a rise in U.S. gasoline futures to a record $1.4015 a gallon hit in the regular session as dealers eyed a year-on-year supply shortfall in the run-up to vacation season.

<snip>

World oil demand is proving far stronger than expected, thanks to booming economic growth, the International Energy Agency said Wednesday. Incremental growth in fuel consumption this year looked set to hit a 16-year record, it said.

<snip>

http://www.msnbc.msn.com/id/4969109/

[aquart]

1. More joy for the incumbent.

Why, George, it's the anti-trifecta.

[zonmoy]

2. And thus

the end begins.

[Snoggera]

3. I would like someone to provide a detailed analysis

answering the question why. If it was known 5 months ago that demand was supposedly going to begin to spike, why wasn't there some planning for it? Why are the US reserves shrinking? Has SA increased their output as promised? Is there to be another attempted coup in Argentina?

[Rocket Science]

5. Here's some analysis

Over the last few months OPEC has agreed to cut back oil production. Although they collectively account for about 1/3 of the world's oil supply they can impact prices by setting production quotas.


Planning by who?
Bush?!?!
You must be kidding?

Besides, we're in capitalist economy our government doesn't do economic 'planning'...


If our reserves are shrinking it may be due to the fact that Congress voted to divert and sell incoming oil that was earmarked for building up our reserves.

I do recall that Hugo Chavez of Venezuela promised to cut off oil exports to the US if we tried a Aristide style coup against him; I think we get about 10% of our oil from there.

And SA's promise if to be fulfilled will probably come in the fall when the election campaign is in full swing. That will give Bush's oil buddies time to earn huge profits from high prices over the summer.

This analysis along with 50 cent might get you a cup of coffee...

[newyawker99]

13. Hi Rocket Science!!

Welcome to DU!! :toast:

[whistle]

4. Also, wholsale producer prices jumped 7/10%...

...last month from the previous month (March to April) which is an 8.7% annual rise. That's going to ripple all through the economy. Out of control oil prices, energy costs, the war spending and record federal deficits adds up to some really screwed up economic numbers. Oh and gas at the pumps in Florida are between $1.92 to $1.95 for regular unleaded up another 6 cents per gallon from last week.

[amandabeech]

6. I thought that Prince Bandar promised that the Saudis

would pump enough to bring the price down for Georgie. Low oil prices lead to an economic recovery right before the election, that was to be the deal. If Bandar and his family don't get those prices down, does that mean that the next Pubbie in the White House will seek revenge for Georgie?

[AndyTiedye]

8. Bush* Will Take Credit For Getting Gas Back Below $3.00/gallon

(because it's heading above that this summer)

[Minstrel Boy]

7. Welcome to the rest of our lives.

It's sad to think, but the 1970s really might have been the pinnacle of human civilization.

[MisterP]

9. no, pea green and sweet-potato orange wouldn't have been in fashion then

or Osmond hair

[dbt]

10. Kick!

Just because people might not have enough to be angry at bu$h over.

:evilgrin:
dbt

[truthisfreedom]

11. watch them hit $60.

this year.

[ze_dscherman]

12. Looks like IEA admits Peak Oil

From a Financial Times article:

"The IEA's predictions marked a shift from its long-held view of the world as awash with oil, to one that is struggling to cope with demand above 80m b/d.

"An increase in drilling and investments in refining capacity is required if the demand projections are to be sustainable," the IEA report said. "Beyond today's needs, suppliers would be well advised to give thought to boosting investment to secure production for tomorrow," it added.

The big oil reserves found in the 1970s in the North Sea and Alaska are in decline, and Opec output has remained relatively static for almost three decades.

This, combined with a lack of significant further oil discoveries and dwindling commercial oil inventories, has led to a tight balance between supply and demand. The demand for oil products including petrol, jet fuel, diesel and naphtha, used for making plastics, also means refineries are operating near to capacity."

http://news.ft.com/servlet/ContentServer?pagename=FT.com/StoryFT/FullStory&c=StoryFT&cid=1083180462881&p=1012571727102

[hatrack]

14. World oil use first exceeded discovery in 1981

This imbalance has grown ever since. We now find one barrel of oil for every four we use. This can't go on forever.

[denverbill]

15. They neglected to mention the Caspian Sea. Somehow. Forgot it.

You know. The area bordered by Afghanistan and Iraq, and all those -stan countries, and Chechnya.

You know. The area where the US and Russia are putting down Islamic insurrections against our popular rule.

[hatrack]

16. Yes, that peaceful, prosperous region with 1/10th the oil we thought

Initial estimates were as high as 800 billion barrels. So far, they've found a total of maybe 50 billion, the largest single chunk of which is Kashagan, with probable EUR of about 25 billion.

Oh, and did I mention the high sulfur content? No wonder BP, Statoil and ExxonMobil pulled out.

[denverbill]

17. That explains the two pipelines they are still building.