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NEW YORK (Reuters) - Oil prices surged more than 2 percent to set a record on Wednesday, after an unexpectedly large drop in U.S. gasoline stocks added to worries that a gathering storm in the Atlantic could damage U.S. oil production platforms.
News Iran's parliament had thrown out the new president's choice for oil minister added to the market's uncertainty and drew a big question mark over oil policy in OPEC's second-biggest producer.

U.S. crude settled at $67.32 a barrel, up $1.61, shortly after hitting $67.40, the highest level in 22 years of oil futures trade on the New York Mercantile Exchange. Oil hit its previous record, $67.10, earlier this month. London Brent settled $1.36 higher at $66.01 on the International Petroleum Exchange.

U.S. data released Wednesday morning showed gasoline inventories in the world's biggest energy consumer tumbled 3.2 million barrels last week, or nearly 2 percent, with two weeks of the peak U.S. driving season to go.

"The gasoline draw is a bullish number, without doubt. The decline was much bigger than the 1.1 million barrels draw the Street was anticipating," said Jim Ritterbusch, analyst at Ritterbusch and Associates.

The market was also watching Tropical Storm Katrina gather strength over the Bahamas and take aim at Florida's southern tip and the oil-producing Gulf of Mexico, which accounts for up to a quarter of U.S. oil output.

"The peak period for hurricanes is usually from August to September, so the oil market is concerned about the risk of weather-related production losses over the coming weeks," said Kevin Norrish of Barclays Capital.

U.S. crude stocks rose 1.8 million barrels last week, contrary to analyst forecasts for a fall. Heating oil supplies built, as anticipated, ahead of the winter.

$50 OIL IN 2006

Assurances by top exporter Saudi Arabia that it would pump as much oil as its customers need failed to take the sting out of a rally that has lifted oil toward the inflation-adjusted $82 a barrel of 1980, the year after the Iranian revolution.

And there is no sign of a let-up next year. Analysts polled by Reuters predicted for the first time on Wednesday that prices would breach $50 a barrel in 2006.

The perceived vulnerability of supply lines is a major factor supporting prices.
Crude oil exports from Iraq's southern Basra terminal resumed late on Tuesday, after a power cut earlier in the day.

In Ecuador, which mostly supplies crude to California, output was still down to around 80 percent of its 530,000-bpd level after attacks on oil infrastructure last week.

Traders were also watching for any disruption in Nigeria, the world's eighth-largest crude exporter, after the state pricing agency instructed the national oil company to recover costs on sales, implying consumer prices are set to rise dramatically. Previous fuel hikes have led to general strikes.

With some production in the UK North Sea and India already offline, dealers worry that the Organization of Petroleum Exporting Countries is pumping flat out and would strain to make up any unexpected outages.

Thought this was interesting:

Quoted: Thought this was interesting: ww1.prweb.com/prfiles/2004/03/19/112819/wflag_copy.jpg

Brutal...

Pretty soon prices will jump because it's a cloudy day

Katrina Witt causes high oil prices?

Right now a dog farting in the park in Brooklyn can make oil prices go up.

I suspect there is some serious comodoties speculation going on right now in the oil market.  

Quoted: Right now a dog farting in the park in Brooklyn can make oil prices go up. I suspect there is some serious comodoties speculation going on right now in the oil market.

I know that would make gas go up but I didn't know about oil.

Yesterday I pulled a booger from my nose and oil shot up $1

Quoted: Katrina Witt causes high oil prices? www.rainbowkids.de/hobbys/sport/MSchoeberl/dugena_03.jpg

It's KATERINA, KA3B...

ARRRRRRRGH!!!!!!!!!!!!!!!!!!!!!!!!

This is the same GD MF SHIT that the media pulls with the stock market.  Trying to link the stock market ups and downs to EVERY FUCKING thing that happens in daily life to make people feel uncertain and SCARED.   So the past 4 GD MONTHS that gas has been going up was WHAT??? Anticipation of this storm?  Fuck them!!


ETA:  not another GD gas thread.

and I would love for gas prices to go back to 1.25 per gallon... then when the "Big Oil" companies could no longer purchase the crude oil needed to MAKE the gas, I guess I will walk.

Quoted: Quoted: Katrina Witt causes high oil prices? www.rainbowkids.de/hobbys/sport/MSchoeberl/dugena_03.jpg It's KATERINA, KA3B...

The lovely Katrina causes high lubricant oil prices.

Any excuse to raise prices......................so I wonder how keeping a horse around would compare to keeping a car around??

Quoted: Any excuse to raise prices......................so I wonder how keeping a horse around would compare to keeping a car around??

You'd have to deal with a lot of shit.

Quoted: Katrina Witt causes high oil prices? www.rainbowkids.de/hobbys/sport/MSchoeberl/dugena_03.jpg

It's this Katrina, and her waves.

Quoted: Quoted: Katrina Witt causes high oil prices? www.rainbowkids.de/hobbys/sport/MSchoeberl/dugena_03.jpg It's this Katrina, and her waves. www.cena.fr/~sagnier/prive/eurovision/kat_dub.jpg

I'm walking on Sunshine!

EVERYTHING makes oil prices jump.  I farted last week...sorry...that cost us all .03 a gallon.  

In a true bubble prices go up whether there is good news, bad news, or no news.

Don't know if this is true, so tell me if I'm wrong - but I heard these countries on average spend $4/barrel to pump crude oil. Or is that BS?

No shit, but if I used her real name it would not have been as funny, no?  

Quoted: Quoted: Katrina Witt causes high oil prices? www.rainbowkids.de/hobbys/sport/MSchoeberl/dugena_03.jpg It's KATERINA, KA3B...

Quoted: Quoted: Any excuse to raise prices......................so I wonder how keeping a horse around would compare to keeping a car around?? You'd have to deal with a lot of shit.

And what do you call what we are dealing with now?

Quoted: Don't know if this is true, so tell me if I'm wrong - but I heard these countries on average spend $4/barrel to pump crude oil. Or is that BS?

Right now we are being driven by speculation which has nothing to do with production costs, and the fact that marginal (expensive) producers are what help control the price.  Every $1 oil goes up another 10 wells are drilled in South Dakota.

Quoted: Quoted: Quoted: Any excuse to raise prices......................so I wonder how keeping a horse around would compare to keeping a car around?? You'd have to deal with a lot of shit. And what do you call what we are dealing with now?

I meant horse shit...I was trying to be funny.

No doubt we are dealing with bullshit right now.

Quoted: Quoted: Quoted: Quoted: Any excuse to raise prices......................so I wonder how keeping a horse around would compare to keeping a car around?? You'd have to deal with a lot of shit. And what do you call what we are dealing with now? I meant horse shit...I was trying to be funny. No doubt we are dealing with bullshit right now.

Horse shit, bull shit it all stinks!