Oil price over $147 for the first time-now above $80
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Stephanie
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Re: Oil prices over 91 dollars(My thinking of whats next)
Regular is down to $2.729 around my area. I'd say it's gone down about 15 cents in the past few weeks. THANK GOD!
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Wow, you guys are lucky!!!-
feederband
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feederband
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vbhoutex
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Re: Oil prices over 91 dollars(My thinking of whats next)
Running 2.99-3.09 here in Houston. I think I may have seen a 2.85 too. Need to find that one too since I need gas!
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Ed Mahmoud
Re: Oil prices over 91 dollars(My thinking of whats next)
The weak dollar is not our friend. They have taken the 'volatile' items, like fuel and food, out of the inflation calculation, to disguise what inflation is actually doing.
To firm up the dollar, they need to raise rates and shrink the growth of the supply, but with a weak economy, that might just be the ticket to a recession.
Nothing happens in an election year, but I hope the next President and Congress cut, or at least freeze, discretionary spending, to reduce the rate of government borrowing, and encourage the Fed to boost rates as high as possible without triggering a recession.
To firm up the dollar, they need to raise rates and shrink the growth of the supply, but with a weak economy, that might just be the ticket to a recession.
Nothing happens in an election year, but I hope the next President and Congress cut, or at least freeze, discretionary spending, to reduce the rate of government borrowing, and encourage the Fed to boost rates as high as possible without triggering a recession.
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Re: Oil prices over 91 dollars(My thinking of whats next)
I paid $3.25 when I got gas yesterday.
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HURAKAN
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Re: Oil prices over 91 dollars(My thinking of whats next)
Oil Spikes Above $102 a Barrel
By ADAM SCHRECK – 1 hour ago
NEW YORK (AP) — Crude prices spiked above $102 a barrel for the first time Wednesday but retreated after the government said stockpiles of crude oil and gasoline rose far more than expected last week.
Prices nonetheless remained within range of Tuesday's record close as the dollar tumbled to fresh lows against the euro and U.S. economic worries drove more money into energy futures as a hedge against inflation.
"This is a market that has been trending strongly to the upside, ignoring fundamentals, and focusing on other factors," said Tim Evans, an energy analyst at Citigroup Global Markets.
Light, sweet crude for April delivery fell 12 cents to $100.76 on the New York Mercantile Exchange, after surging as high as $102.08 a barrel in electronic trading earlier. The contract on Tuesday jumped $1.65 to settle at $100.88 a barrel, a record.
"It's not about the gas inventories, it's not about the seasonality," Evans added. "Traders are buying and selling on other theories of valuation. They are not looking at how oil supply compares with oil demand."
Meanwhile, gasoline prices at the pump jumped a penny overnight, rising to an average of $3.152 from $3.142, according to AAA and the Oil Price Information Service. A year ago, drivers were paying an average of just $2.37 for a gallon of gas.
The report by the Energy Department's Energy Information Administration showed U.S. crude oil inventories rose by 3.2 million barrels, or 1 percent, to 308.5 million barrels. Although that number is slightly lower than levels a year ago, it is well ahead of the 2.4 million barrel gain analysts had been expecting, according to a survey by Dow Jones Newswires.
It was the seventh straight week the report showed a rise in crude inventories, suggesting the U.S. at least has more than enough oil to meet demand. Data showed gasoline inventories also jumped more than expected — by 2.3 million barrels to 232.6 million barrels. Analysts had expected a more modest rise of 400,000 barrels. Refinery activity also increased much more than expected.
Jim Ritterbusch, president of energy consultancy Ritterbusch and Associates in Galena, Ill., said the report ought to send a bearish signal to the market. But, he added, traders have found other reasons to push prices up in the face of previous bearish reports.
"The initial response to the downside from this report could be easily reversed by day's end," he said.
Traders seemed to focus largely on the slumping dollar, which is increasingly driving investors to oil and other commodities to protect against inflation. The 15-nation euro jumped a record $1.51 against the greenback, ensuring that crude will remain a relative bargain for buyers overseas.
Negative economic news continued Wednesday when the Commerce Department reported that new factory orders for big-ticket manufactured goods tumbled 5.3 percent in January. The worse-than-expected drop was the indicator's biggest decline in five months.
On Capitol Hill, Federal Reserve Chairman Ben Bernanke warned of sluggish business growth ahead, and signaled a willingness by the central bank to cut interest rates again. But Bernanke also noted that the Fed must keep a close watch on inflation given the sharp rise in energy prices and other costs.
"You're looking at ... the use of the crude market as a hedge for inflation, while at the same time crude has been the source of inflation," Evans said. "As long as that feedback loop is in place, then prices could conceivably continue to push higher even though there's plenty of crude oil and plenty of gasoline."
Oil prices are still within the range of inflation-adjusted highs set in early 1980. Depending on how the adjustment is calculated, $38 a barrel then would be worth $96 to $103 or more today.
In London, Brent crude fell 48 cents to $98.99 a barrel on the ICE Futures exchange, below the intraday record of $100.30 a barrel set earlier in the session.
In other Nymex trading Wednesday, heating oil futures fell 1.5 cents to trade at $2.7997, while gasoline futures fell by 4.7 cents to $2.5035.
Natural gas futures lost more 17 cents, fetching $9.035 per 1,000 cubic feet.
By ADAM SCHRECK – 1 hour ago
NEW YORK (AP) — Crude prices spiked above $102 a barrel for the first time Wednesday but retreated after the government said stockpiles of crude oil and gasoline rose far more than expected last week.
Prices nonetheless remained within range of Tuesday's record close as the dollar tumbled to fresh lows against the euro and U.S. economic worries drove more money into energy futures as a hedge against inflation.
"This is a market that has been trending strongly to the upside, ignoring fundamentals, and focusing on other factors," said Tim Evans, an energy analyst at Citigroup Global Markets.
Light, sweet crude for April delivery fell 12 cents to $100.76 on the New York Mercantile Exchange, after surging as high as $102.08 a barrel in electronic trading earlier. The contract on Tuesday jumped $1.65 to settle at $100.88 a barrel, a record.
"It's not about the gas inventories, it's not about the seasonality," Evans added. "Traders are buying and selling on other theories of valuation. They are not looking at how oil supply compares with oil demand."
Meanwhile, gasoline prices at the pump jumped a penny overnight, rising to an average of $3.152 from $3.142, according to AAA and the Oil Price Information Service. A year ago, drivers were paying an average of just $2.37 for a gallon of gas.
The report by the Energy Department's Energy Information Administration showed U.S. crude oil inventories rose by 3.2 million barrels, or 1 percent, to 308.5 million barrels. Although that number is slightly lower than levels a year ago, it is well ahead of the 2.4 million barrel gain analysts had been expecting, according to a survey by Dow Jones Newswires.
It was the seventh straight week the report showed a rise in crude inventories, suggesting the U.S. at least has more than enough oil to meet demand. Data showed gasoline inventories also jumped more than expected — by 2.3 million barrels to 232.6 million barrels. Analysts had expected a more modest rise of 400,000 barrels. Refinery activity also increased much more than expected.
Jim Ritterbusch, president of energy consultancy Ritterbusch and Associates in Galena, Ill., said the report ought to send a bearish signal to the market. But, he added, traders have found other reasons to push prices up in the face of previous bearish reports.
"The initial response to the downside from this report could be easily reversed by day's end," he said.
Traders seemed to focus largely on the slumping dollar, which is increasingly driving investors to oil and other commodities to protect against inflation. The 15-nation euro jumped a record $1.51 against the greenback, ensuring that crude will remain a relative bargain for buyers overseas.
Negative economic news continued Wednesday when the Commerce Department reported that new factory orders for big-ticket manufactured goods tumbled 5.3 percent in January. The worse-than-expected drop was the indicator's biggest decline in five months.
On Capitol Hill, Federal Reserve Chairman Ben Bernanke warned of sluggish business growth ahead, and signaled a willingness by the central bank to cut interest rates again. But Bernanke also noted that the Fed must keep a close watch on inflation given the sharp rise in energy prices and other costs.
"You're looking at ... the use of the crude market as a hedge for inflation, while at the same time crude has been the source of inflation," Evans said. "As long as that feedback loop is in place, then prices could conceivably continue to push higher even though there's plenty of crude oil and plenty of gasoline."
Oil prices are still within the range of inflation-adjusted highs set in early 1980. Depending on how the adjustment is calculated, $38 a barrel then would be worth $96 to $103 or more today.
In London, Brent crude fell 48 cents to $98.99 a barrel on the ICE Futures exchange, below the intraday record of $100.30 a barrel set earlier in the session.
In other Nymex trading Wednesday, heating oil futures fell 1.5 cents to trade at $2.7997, while gasoline futures fell by 4.7 cents to $2.5035.
Natural gas futures lost more 17 cents, fetching $9.035 per 1,000 cubic feet.
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Pedro Fernández
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Around 1,7 US dolars....-
HURAKAN
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Re: Oil prices over 91 dollars(My thinking of whats next)
Dollar Falls to Record Against Euro on Fed Rate-Cut Speculation
By Ye Xie and Kim-Mai Cutler
Feb. 27 (Bloomberg) -- The dollar fell below $1.51 per euro for the first time after Federal Reserve Chairman Ben S. Bernanke signaled he's ready to lower interest rates again to support the weakening U.S. economy.
An index that tracks the currency against six major counterparts dropped to the lowest since the gauge started in 1973, as European Central Bank policy maker Axel Weber said investors expecting rate cuts in the region are underestimating inflation. The U.S. currency fell to an all-time low against the Swiss franc and to 23-year lows versus the Australian and New Zealand dollars.
``This is a new chapter for the dollar,'' said Russell LaScala, head of foreign-exchange trading in North America at Deutsche Bank AG in New York. ``You are seeing divergence of central banks' views.''
The currency touched $1.5144 per euro, the weakest since the common currency's debut in 1999, before trading at $1.5117 at 1:34 p.m. in New York, from $1.4974 yesterday. It fell to 106.46 yen from 107.28 yen, coming within about 1 percent of a 2 1/2-year low reached in January, and dropped as low as 1.0624 francs, from 1.0756. The euro rose to 161.04 yen from 160.67.
LaScala said dollar-selling gained momentum yesterday after Fed Vice Chairman Donald Kohn said turmoil in credit markets and the possibility of a slower economy pose a ``greater threat'' than inflation. The currency has slid 4 percent against the euro in the past three weeks as the housing recession worsened and consumer confidence sank, leading traders to exit bets on a dollar rebound. The dollar will rise to $1.45 per euro by mid- year, according to the median forecast in a Bloomberg survey.
Bernanke Speaks
The dollar weakened past $1.51 per euro today after Bernanke said the Fed ``will act in a timely manner'' to insure against ``downside risks'' to the economy. His remarks came in testimony to the House Financial Services Committee in Washington. The Fed watches the dollar ``very carefully,'' and has no ``target'' for it, he also said.
Futures on the Chicago Board of Trade show most traders expect the Fed to cut rates to at least 2 percent by mid-year, from 3 percent now. The bank has slashed rates from 5.25 percent in September, and is scheduled to meet next on March 18.
Full Article
By Ye Xie and Kim-Mai Cutler
Feb. 27 (Bloomberg) -- The dollar fell below $1.51 per euro for the first time after Federal Reserve Chairman Ben S. Bernanke signaled he's ready to lower interest rates again to support the weakening U.S. economy.
An index that tracks the currency against six major counterparts dropped to the lowest since the gauge started in 1973, as European Central Bank policy maker Axel Weber said investors expecting rate cuts in the region are underestimating inflation. The U.S. currency fell to an all-time low against the Swiss franc and to 23-year lows versus the Australian and New Zealand dollars.
``This is a new chapter for the dollar,'' said Russell LaScala, head of foreign-exchange trading in North America at Deutsche Bank AG in New York. ``You are seeing divergence of central banks' views.''
The currency touched $1.5144 per euro, the weakest since the common currency's debut in 1999, before trading at $1.5117 at 1:34 p.m. in New York, from $1.4974 yesterday. It fell to 106.46 yen from 107.28 yen, coming within about 1 percent of a 2 1/2-year low reached in January, and dropped as low as 1.0624 francs, from 1.0756. The euro rose to 161.04 yen from 160.67.
LaScala said dollar-selling gained momentum yesterday after Fed Vice Chairman Donald Kohn said turmoil in credit markets and the possibility of a slower economy pose a ``greater threat'' than inflation. The currency has slid 4 percent against the euro in the past three weeks as the housing recession worsened and consumer confidence sank, leading traders to exit bets on a dollar rebound. The dollar will rise to $1.45 per euro by mid- year, according to the median forecast in a Bloomberg survey.
Bernanke Speaks
The dollar weakened past $1.51 per euro today after Bernanke said the Fed ``will act in a timely manner'' to insure against ``downside risks'' to the economy. His remarks came in testimony to the House Financial Services Committee in Washington. The Fed watches the dollar ``very carefully,'' and has no ``target'' for it, he also said.
Futures on the Chicago Board of Trade show most traders expect the Fed to cut rates to at least 2 percent by mid-year, from 3 percent now. The bank has slashed rates from 5.25 percent in September, and is scheduled to meet next on March 18.
Full Article
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feederband
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Re: Oil prices over 91 dollars(My thinking of whats next)
Ed Mahmoud wrote:The weak dollar is not our friend. They have taken the 'volatile' items, like fuel and food, out of the inflation calculation, to disguise what inflation is actually doing.
To firm up the dollar, they need to raise rates and shrink the growth of the supply, but with a weak economy, that might just be the ticket to a recession.
Nothing happens in an election year, but I hope the next President and Congress cut, or at least freeze, discretionary spending, to reduce the rate of government borrowing, and encourage the Fed to boost rates as high as possible without triggering a recession.
I think a recession in unavoidable...I agree raising rates will cause one...But maybe its the only way to get on the other side of this mess...Time are tough and its going to get a whole lot tougher.
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Cryomaniac
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brunota2003
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Re: Oil price reaches over 102 dollars
$3.19/gallon here. I remember seeing a gas sign reading "$0.99" back when I was a little kid (Like, 1997 or so). Scary to think back just 11 years ago and compare prices 
(or even, for that matter, a year ago, according to the above article, was $2.37 on average on this date in 2007).
(or even, for that matter, a year ago, according to the above article, was $2.37 on average on this date in 2007).
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Dionne
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Re: Oil price reaches over 102 dollars
There is one particular gas station where I fuel my work truck. They were not selling any gasoline yesterday or the day before....so I asked them why? Get this.....the pumps are an older model......they only go as high as 2.99! They must purchase new pumps to accommodate the higher prices.
Just out of curiosity......when do you think gasoline will hit $5 gallon in CONUS? Will it be the result of higher crude prices/demand.....or will a natural disaster/man made disaster close the Houston shipping channel?
Just out of curiosity......when do you think gasoline will hit $5 gallon in CONUS? Will it be the result of higher crude prices/demand.....or will a natural disaster/man made disaster close the Houston shipping channel?
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feederband
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The gas company's got us and they know it...They could raise it to $5.00 today and we would still have to buy their product...My family have curbed all non needed driving...I barley drive anymore do to my health..Yet we still spend over $60.00 a week or $240.00 a month on gas...This is higher than my electric bill right now..It is also about the amount we use to spend 7 years ago...When I used to drive over fifty miles to work...
I sense really bad times ahead..
I sense really bad times ahead..
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Re: Oil price reaches over 102 dollars
I think a recession in unavoidable...I agree raising rates will cause one...But maybe its the only way to get on the other side of this mess...Time are tough and its going to get a whole lot tougher.
The Federal Reserve lowered interest rates to bail out the real estate speculators and the banks that allowed pyramid price schemes.
Unfortunately when house prices pyramid to three times their value in 5 short years as they did in markets like Miami there is eventually a bust. Housing booms like the SoCal boom inthe 80's ended with house prices falling for 6 years. Once a housing market has reached the melt down point and dropped 15 percent, the investors that had been contributing to the pyramid run and no amount of interest rate lowering is going to help. Bank mortgage underwriters have 20 20 hindsight just like the rest of the potential home buyers.
Lowering interest rates early while inflation was still not a problem was smart. This action might have kept some areas of the country from going into full real estate melt down mode. Now we are beginning to see inflation again at the producer and wholesale levels so the path for future rate cuts is not as clear. Pyramid schemes were the cause of the housing slump and the Federal Reserve needs to let the market bottom out naturally. Greenspan has been predicting a housing correction for some time.
If we fight inflation now and wait for the housing market to bottom out THEN offer some support in the way of interest rate cuts, we can get through this recession much quicker.
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gtalum
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You can thank the policies that have resulted in a 50% drop in value of the US Dollar since the summer of 2001. Nearly the entire increase in oil prices since then are linked directly to the falling dollar. Just think.. If the dollar were worth today what it was worth in 2001, in relation to other world currencies, gas would be ~$1.50 per gallon. And of course, people would still be whining about that.
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Hybridstorm_November2001
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wbug1
Re: Oil price reaches over 102 dollars
It's already been a few years since the number of new oil field discoveries has been declining. USGS seems to think that oil field discoveries will continue at the present rate with new technology improving the ability to locate new fields - everybody else, and the numbers, point to a different conclusion. The amount of coal left remains large, but that won't help with greenhouse gases, and coal can't be burned in cars, although I think some kind of fuel can be made from it at a much higher cost than gas is available for today.
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