Oil - Supply and Price

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Zoomerz

Member
Messages
220
Oil - Supply and Price

Watch out for runaway inflation soon if this is true. Especially in the commodities markets.

Oil Soars to Record on Spike Alert

1 hour, 2 minutes ago

Business - Reuters

By Richard Valdmanis

NEW YORK (Reuters) - Oil prices surged to a record near $58 a barrel on Friday, powered by a forecast the market could spike above $100 due to robust global demand and tight spare capacity.

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Prices have climbed around 30 percent this year, with big-money speculative funds buying heavily on signs that rapid demand growth in Asia's emerging economies and the United States would strain world supply.

U.S. light crude settled up $1.87 to $57.27 after peaking at $57.70 a barrel, breaking the previous record of $57.60 hit March 17. London's Brent crude climbed $2.22 to $56.51 a barrel.

U.S. gasoline futures for May hit a record $1.7360 a gallon on worries that a national stockpile surplus could dwindle ahead of driving season, while heating oil futures struck a peak of $1.6750 a gallon.

Top energy derivatives trader Goldman Sachs (NYSE:GS - news) said in a report on Thursday the oil markets might have entered a "super-spike" period, which could eventually drive prices toward $105.

"That was a pretty big call by them and the market is just assessing where supply and demand really sits," said David de Garis, senior economist at ANZ Investment Bank in Melbourne.

"In a very interesting report, Goldman talked about how we might see a longer cycle and a higher cycle than we have seen in a very long time," said Deborah White, senior economist at SG Commodities.

Goldman Sachs raised its 2005 and 2006 price forecasts for U.S. light crude to $50 and $55, respectively, from $41 and $40, citing resilient oil demand growth.

Prices rallied 2.6 percent on Thursday on the back of the report and also on concerns about the adequacy of U.S. gasoline stocks ahead of the peak summer demand season.

GASOLINE SUPPLY ANXIETY

Production problems over the past week have deepened concerns over whether refiners will be able to meet gasoline demand this summer.

A 485,000-barrel-per-day (bpd) refinery in Venezuela -- the world's fifth-biggest oil exporter and a top supplier of crude and oil products to the United States -- was shut down on Thursday by a power failure.

State oil company PDVSA said it aimed to resume full operations at the Amuay refinery in seven days at the latest and that supply to local and international markets was guaranteed.

A fatal explosion last week at BP Plc's (BP.L) Texas City refinery, the third-largest in the U.S., also unnerved the market, along with problems at several gasoline-producing units.

For the past month, U.S. gasoline demand has been 2 percent higher than the same time a year ago, despite record pump prices.

The U.S. Energy Information Administration (EIA) reported on Wednesday gasoline stocks fell 2.9 million barrels to 214.4 million barrels last week, the fourth decline in a row.

capacity my a**....

http://news.yahoo.com/news?tmpl=story&u=/n.../markets_oil_dc

Z-
 

Arez

Junior Member
Messages
25
Re: Oil - Supply and Price

they have found out that new wa to make petrollast longer. using platinum so tat willhelp abit. and its gotta run out sometime so they gotta raise the price else if it was cheap it would be gone even faster
 

StarLord

Senior Member
Messages
3,187
Re: Oil - Supply and Price

Why not just pull the 50mpg carburators of the shelf that they have the patent to and have been siting on for decades.....

too much to ask for?
 

Zoomerz

Member
Messages
220
Re: Oil - Supply and Price

You guys are missing the point.....I could give a rat's a** about the price of gas. If you read the article (and I've heard this a few times in the last few days), the price spike could go over $100/brl. If that happens, how much will eggs be? How much will a hamburger go up? What will be the average price of T-shirts....get the drift?

We live in an "oil" economy. EVERYTHING will go up, resulting in runaway inflation.....then interest rates go up, and the housing market crashes...etc....etc...etc...

Not a pretty picture at all.

Z-
 

StarLord

Senior Member
Messages
3,187
Re: Oil - Supply and Price

BREAK OUT THE CARBS that give all vehicles 50 miles per gallon + and would we have this problem???
 

Zoomerz

Member
Messages
220
Re: Oil - Supply and Price

Somehow I can't see them retrofitting diesel locomotives, or 18-wheelers with efficiency carbs, sorry..... How many miles/gal a passenger car gets has nothing to do with how much it costs to ship produce around the country/world. And that doesn't touch "petroleum-based" products that are not "driven".

Not that I wear *polyester* shirts (ahem....), but those that do will soon be paying twice or 3 times as much for them....etc, and so on.

Z-
 

Grayson

Senior Member
Messages
1,079
Re: Oil - Supply and Price

Why not just pull the 50mpg carburators of the shelf that they have the patent to and have been siting on for decades.....

too much to ask for?

You must live in America.

My Car is a 7 seat vehicle crammed full of all the mod-cons, is turbo-charged, has ABS, EBD, AC/CC, DVD and Sat-Nav, Blah-blah-blah. It is 11 months old, bought it from new, and returns 56.5 mpg from a steady 75mph on a motorway.

50mpg carbs (?) electronic fuel injectors please, have been prevelant in the UK and Europe for about a decade (ish) maybe more. The difference between an American Car/Automobile and my French (I ahet the French) built Renault is this.

Roughly 3 - 5 litres in engine size and as much as 40 mpg in fuel efficiency.

My car has a 1.9 litre Turbo-Diesel, the Chevy that I once owned in the US, had an 8.1 litre engine... 8.1 litres, that's right.

We build cars for efficiency and have some cars capable of 80+ mpg already on our roads, yet in America, size is everything. Jaguar cars are built 25 miles from where I live and I have a friend who works there. We buy 2.0 and 2.5 litre Jags and forced the company to build a diesel Jag in the last 2 years. We export 3.2 and 4.2 litre Jags to the US and none of them will be Diesel fuelled.

We don't need more efficient cars, we need the US to sign in to the Kyoto agreement and US citizens to buy cars with smaller, more efficient engines, adopt Diesel power and even LPG fuelled cars as we do. Dollar for dollar, you go twice as far with LPG as you do Diesel... I'll be doing 112 mpg for my Diesel pound when I get converted.

Oil isn't the issue here, consumption is.
 

Grayson

Senior Member
Messages
1,079
Re: Oil - Supply and Price

Somehow I can't see them retrofitting diesel locomotives, or 18-wheelers with efficiency carbs, sorry..... How many miles/gal a passenger car gets has nothing to do with how much it costs to ship produce around the country/world. And that doesn't touch "petroleum-based" products that are not "driven".

Not that I wear *polyester* shirts (ahem....), but those that do will soon be paying twice or 3 times as much for them....etc, and so on.

Z-

How many petroleum based products go into cars? Plastic dash, wiring insulation, bumper strips, internal fittings, plastic fuse blocks, synthetic oils... then you have trucks, buses, aeroplanes and ships to contend with as well. Without plastic, nothing would move on this planet, at all.

Start with the car, the fuel efficient truck and aeroplane, then we conentrate on the plastic bottles, the food cartons and the biro's that are consumed in their billions every year. Start small, but think big, that's the ticket.
 

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