Oil price over $147 for the first time-now above $80

[HURAKAN]

Oil above $60 on economy hopes

Oil prices have risen to their highest level in six months, buoyed by hopes the worst may be over for the world economy and demand for oil may recover.

US crude rose as high as $60.08 a barrel before falling back, while London Brent crude rose to $58.64.

The price of US crude is now up by about 80% from a January low of $32.70 a barrel, but is well below the record high above $147 hit in July last year.

Oil has risen in response to a global rebound in stocks.

Weakness in the dollar has also spurred the oil price, which tends to rise when the dollar falls. The dollar hit a four-month low against a basket of currencies on Tuesday.

Ample supply

"The feeling is we've seen the worst of it, and the only way now is up," said Gerard Rigby, an energy analyst with Fuel First Consulting in Sydney.

However, despite the optimism there is so far scant evidence that demand for oil is recovering.

Oil supply is also ample. There is an estimated 100 million barrels of crude oil stored at sea on tankers and US crude inventories are at their highest in 19 years.

But the recent stock market rally has sparked hopes that the world economy is recovering and thus investors are betting that demand for oil will recover soon.
Story from BBC NEWS:
http://news.bbc.co.uk/go/pr/fr/-/1/hi/b ... 046058.stm

[somethingfunny]

optimisim....

hopes.....

recovery.....

great news!

wait!

[JonathanBelles]

Up 20 cents in a week or two.

[Tampa Bay Hurricane]

Can the US please somehow screw OPEC over?

[george_r_1961]

Can we say "price gouging?"

At the rate we are going $4 a gallon gas may soon return to a pump near you.

[grentz7721]

$2.21 per gallon in my area right now.

[Stephanie]

$2.13 for regular here.

[vbhoutex]

$2.15 for regular here in Houston. Gas has gone up at least $0.30 in the last 3 weeks.

[cycloneye]

Oil above $72

Oil prices extended a three-day rally to a nearly eight-month high over $72 a barrel on Thursday on rising hopes the economic recession had bottomed out, spelling a recovery in ailing world energy demand.

The International Energy Agency said Thursday it revised its outlook for global oil demand higher for the first time since August, two days after the U.S. government's energy forecaster did the same.


http://www.cnbc.com/id/31213880

Gasoline here is on average at .65.7 a liter.

[george_r_1961]

http://www.guardian.co.uk/business/2009 ... t-reserves

Alexei Miller, chairman of the Russian energy group Gazprom, raised the stakes further when he reiterated last year's estimates of $250 a barrel.

[Ed Mahmoud]

I work in oil and gas, $60 to $80 seems to be a fair value from what I understand.

Of course, hopes of a better economy and anticipation of increased demand boosts prices, which might slow any recovery. Kind of circular. As a commodity, as both the US debt and the money supply increase, suggesting at least some inflation ahead, oil might be seen as a hedge.

[DanKellFla]

I don't remember where I read/heard that, but Ed is right. We can have $80 a barell oil and still have gas cheaper than it is right now. There isn't a direct connection between the two. It is convoluted. There are tankers floating around in the ocean just waiting for the price of oil to go up and then sell. The storage capacity is close to full. So, there could be a drop in prices if business are forced to sell that oil.

[HURAKAN]

Oil price touches high for 2009

The price of oil has hit its highest level of the year, boosted by sharp rises in Chinese stocks and rising shares on Wall Street.

The price of US crude was up 82 cents at $73.73, after touching $74.15 a barrel. London Brent was up 66 cents at $73.99, after earlier hitting $74.52.

The oil price hit $147 a barrel last July and fell below $74 last October, a level it has not breached since.

Worldwide oil prices have been extremely volatile this year.

Prices have been affected as much by sentiment as by fundamentals of demand and supply.

Ben Bernanke, the chairman of the Federal Reserve, said that prospects for a return to growth in the near term appeared good in the US and abroad.

US shares traded higher - with the Dow Jones index rising more than 1% - after his speech and on better-than-expected figures for sales of existing homes.

Sales rose by 7.2% in July to an annual rate of 5.24 million homes.

"The significant rise in the oil price in the first half of the year is due in large part to a recovery in investment by financial investors," said Eugen Weinberg at Commerzbank.
Story from BBC NEWS:
http://news.bbc.co.uk/go/pr/fr/-/2/hi/b ... 214680.stm

[Lurker]

Can the US please somehow screw OPEC over?

The problem is the money supply and the US dollar. The CFTC is very shortsighted as they blame the speculators and are going to pass position limits on traders. This has slowed oil down some but it is just a temporary slow down. The Fed's balance sheet is at record levels which is the root of the problem. The more the dollar slides the higher commodity prices go. Oil is going higher down the road.....much higher.

[Lurker]

Can we say "price gouging?"

At the rate we are going $4 a gallon gas may soon return to a pump near you.

Yep but lets make sure the right people share the blame for the price gouging. The trillions in bailouts, handouts, and pick me ups are to blame. Everyone will pay one way or another. Inflation is the hidden tax.

[Lurker]

The first thing we did in Iraq when we threw out their government? We started selling oil for dollars again (Saddam changed the policy in 2000).

Edit to remove quote.

[Stephanie]

Lurker - is there a particular reason why you're quoting a post from 2007? What was the point of this? A lot has happened in 2 years, do you like to rehash things?

[Lurker]

Lurker - is there a particular reason why you're quoting a post from 2007? What was the point of this? A lot has happened in 2 years, do you like to rehash things?

This is the first time I've read this thread. I read that post and needed to clarify.

[coriolis]

If oil prices are trending the same direction as stocks, that's good news for my 401k.

[MGC]

Now that the summer driving season is coming to a close gasoline demand should drop and along with that the price. Of course with the world economy slowly reviving this will increase demand for oil causing the price to rise. In short, I don't have a clue what oil prices will do. Add into that the recent discovery by BP of oil in the GOM...who knows?....MGC