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Posted: 6/6/2008 9:53:54 AM EDT
http://biz.yahoo.com/ap/080606/oil_prices.html?.v=11


Oil rises more than $8 to new record high
Friday June 6, 1:41 pm ET
By Adam Schreck, AP Business Writer  
Oil prices shoot past record above $137 a barrel on weak dollar and prediction of price spike



NEW YORK (AP) -- Oil prices shot up nearly $10 to a new record above $137 a barrel Friday after a Morgan Stanley analyst predicted prices could hit $150 by the Fourth of July. The meteoric surge builds on a huge gain the previous day and sets the stage for the biggest two-day gain in the history of the New York Mercantile Exchange.

A further weakening of the dollar helped keep prices high by enticing overseas buyers armed with stronger currencies and other investors looking for a hedge against the greenback. Mounting tensions in the Middle East added fuel to the rally.

Light, sweet crude for July delivery jumped as high as $137.70 on the Nymex, before easing slightly to $136.45, up $8.66. Prices hit a previous record of $135.09 a barrel on May 22.

This latest surge follows a $5.49 gain Thursday, which was the biggest single-day price increase in the history of the Nymex crude contract.

Prices pushed sharply higher Friday after Morgan Stanley analyst Ole Slorer said he expected strong demand in Asia could drive prices to $150 by Independence Day, when millions of Americans are expected to take to the roads. Shipments from the Middle East are mimicking patterns seen in the third quarter last year, when Morgan Stanley based its "oil price spike" predictions on falling supplies in the Atlantic, he said.

"We made the same call using the same parameters, but now we are starting from much lower inventory levels," Slorer said.

Friday's surge builds on a $5.49 gain Thursday, which was the biggest single-day price increase in the history of the Nymex crude contract. That spike came as the dollar fell after the European Central Bank suggesting it could raise interest rates.

"We had a rally of something like $12 in about 24 hours. It makes no fundamental sense," said Stephen Schork, an analyst and trader in Villanova, Pa. "With oil pushing back up to the mid-$130s, it's the make it or break it point. If we go past that, we set the course for uncharted waters and head up toward $150."

Meanwhile, U.S. gas prices at the pump continued to hover just shy of an average $4 a gallon, easing only 0.3 cent from Thursday's record.

Drivers are now paying an average of $3.99 for a gallon of regular gas nationwide, according to AAA and the Oil Price Information Service; in many parts of the country, consumers are already paying well over $4. Retail diesel slipped a penny overnight to $4.76.

Pump prices are bound to rise even further if oil sustains its advance. James Cordier, president of Tampa, Fla.-based trading firm Liberty Trading Group, predicted prices could rise to $4.25 as early as the end of the month.

"Unfortunately, drivers cutting back isn't going to lower the price of gasoline any time soon," he said.

The dramatic reversal in what had been a weakening oil market began Thursday after ECB President Jean-Claude Trichet suggested the bank could raise interest rates and the euro climbed against the dollar. When interest rates rise in Europe, or fall in the U.S., the dollar tends to weaken against the euro.

Many traders buy commodities such as oil as a hedge against inflation when the dollar is falling, and a weaker dollar makes oil cheaper for investors dealing in other currencies. Analysts believe the dollar's protracted decline has been a major reason why oil prices have nearly doubled in the past year.

The euro strengthened further against the greenback Friday. A Labor Department report showing the U.S. unemployment rate jumped half a percentage point to 5.5 percent last month -- its biggest monthly increase since 1986 -- could drag the dollar even lower in the days ahead.

"Unemployment jumping as it did today will be in the market for a long time and will continue to pressure the U.S. dollar," Cordier said.

Growing tensions in the Middle East also helped prop up oil prices. Israel sent aircraft, tanks and ground troops into the Gaza Strip on Friday, and a Cabinet minister hoping to replace embattled Prime Minister Ehud Olmert was quoted as saying Israel will attack Iran if it doesn't abandon its nuclear program.

In other Nymex trading, heating oil futures rose 23.72 cents to $3.918 a gallon while gasoline prices rose 15.7 cents to $3.4915 a gallon. Natural gas futures rose 25 cents to $12.769 per 1,000 cubic feet.

In London, July Brent crude shot up $7.75 to $135.30 a barrel on the ICE Futures exchange.
Link Posted: 6/6/2008 9:55:17 AM EDT
No problem. Obama will save us.
Link Posted: 6/6/2008 9:55:57 AM EDT
This is genuinely stressful. There is a lot of fear mongering on ARFcom, but this shit is for real. We are in new times.
Link Posted: 6/6/2008 9:56:32 AM EDT
HOPE I got some CHANGE left after I fill up later.
Link Posted: 6/6/2008 9:57:31 AM EDT

Quoted:
This is genuinely stressful. There is a lot of fear mongering on ARFcom, but this shit is for real. We are in new times.


No doubt about that dude
Link Posted: 6/6/2008 10:02:39 AM EDT
Like a Saturn V rocket

Watch it roar upwards and stare in awe.

Look at at the slope of that rise...
Link Posted: 6/6/2008 10:04:22 AM EDT
Yo' Mutha just picked up a Escalade,Fokker gave it to me

on another note Diesel is $4.80 a gal. here

Hope you like that Big Dog there Sucka
Link Posted: 6/6/2008 10:07:21 AM EDT
An expensive station along pch has premium at 4.80
Link Posted: 6/6/2008 10:08:56 AM EDT
good thing I got one of these

Link Posted: 6/6/2008 10:10:10 AM EDT
Another record high? That's great news.
Link Posted: 6/6/2008 10:10:41 AM EDT
It's a fucking self fulfilling prophecy

If you predict oil will rise, and then fears based off your prediction cause it to rise, how fucked up is that??!?!

Anyone that says speculation isn't driving up the price of oil is a damned fool.
Link Posted: 6/6/2008 10:19:22 AM EDT

Quoted:
This is genuinely stressful. There is a lot of fear mongering on ARFcom, but this shit is for real. We are in new times.


Yup, but keep it to yourself.  You will upset the children.

Out on the highway, the big rigs have definitely slowed down; and so have I.  No more "left lane all the way" for me.  Now I tuck into the middle lane a hundred yards or so behind one of the big boys.  I like it there rolling along at 58 to 68 mph.  Semi-trailers use topography just like hybrids so it works out well; slowing at the crest of hills and regaining speed again on the down slope, hitting the gas again near the bottom so you don't scrub off too much momentum for the next up slope.  With the warmer weather I'm squeezing around 56mpg out of my Prius.  I'm intelligent enough to know that this isn't going to save me.  Come $10 per gallon gas I'll be off the road, out of work and standing in the same unemployment line as everyone else.
Link Posted: 6/6/2008 10:21:58 AM EDT
I drive a saturn and it costs about 20 a week to go back and forth to work

Meh
Link Posted: 6/6/2008 10:22:38 AM EDT

Quoted:

Quoted:
This is genuinely stressful. There is a lot of fear mongering on ARFcom, but this shit is for real. We are in new times.


No doubt about that dude


Yep..  
Link Posted: 6/6/2008 10:22:49 AM EDT

Quoted:
I drive a saturn and it costs about 20 a week to go back and forth to work

Meh


for now
Link Posted: 6/6/2008 10:23:29 AM EDT
Nothing is wrong, everything is fine, go take an economics class.
Link Posted: 6/6/2008 10:23:50 AM EDT
And in other news, Kuwaitis are enjoying their freedom (thanks to Americans) and are filling up their tanks at well below $1.00/gallon AND their oil barons are getting rich off of American oil purchases.

Link Posted: 6/6/2008 10:24:16 AM EDT
Just broke $138.
Link Posted: 6/6/2008 10:24:41 AM EDT

Quoted:
And in other news, Kuwaitis are enjoying their freedom (thanks to Americans) and are filling up their tanks at well below $1.00/gallon AND their oil barons are getting rich off of American oil purchases.



They were getting filthy rich back when oil was $20/barrel.  Now it's 7 times higher.
Link Posted: 6/6/2008 10:26:00 AM EDT

Quoted:
And in other news, Kuwaitis are enjoying their freedom (thanks to Americans) and are filling up their tanks at well below $1.00/gallon AND their oil barons are getting rich off of American oil purchases.




We should have let Kuwait and Saudi get what was coming to them.
Link Posted: 6/6/2008 10:28:23 AM EDT

Quoted:
An expensive station along pch has premium at 4.80


Regular is just about $4.50 here.
Link Posted: 6/6/2008 10:30:36 AM EDT
We've seen sporadic incidents of people *losing it* over gas prices....bet that continues, too.

HH
Link Posted: 6/6/2008 10:31:13 AM EDT

Quoted:
We've seen sporadic incidents of people *losing it* over gas prices....bet that continues, too.

HH



When do the riots start?
Link Posted: 6/6/2008 10:31:23 AM EDT

Quoted:

Quoted:
This is genuinely stressful. There is a lot of fear mongering on ARFcom, but this shit is for real. We are in new times.


No doubt about that dude
 Forgive me for laughing, but this is hilarious...many of us have been saying this for a long time...
Link Posted: 6/6/2008 10:36:11 AM EDT

Quoted:

Quoted:
And in other news, Kuwaitis are enjoying their freedom (thanks to Americans) and are filling up their tanks at well below $1.00/gallon AND their oil barons are getting rich off of American oil purchases.




We should have let Kuwait and Saudi get what was coming to them.


Maybe, but the fact is, we didn't.
Americans went over there and liberated them so that in thanks they could rape us at the pumps.


Link Posted: 6/6/2008 10:36:31 AM EDT

Quoted:

Quoted:
We've seen sporadic incidents of people *losing it* over gas prices....bet that continues, too.

HH



When do the riots start?


Don't know about riots, but angry people that can't afford to fill their tanks and get to work may get really goofy on us....and that's not to mention prices on goods/food rising due to increased transportation costs.

HH
Link Posted: 6/6/2008 10:38:47 AM EDT
$139.01
Link Posted: 6/6/2008 10:38:52 AM EDT

Quoted:

Quoted:

Quoted:
This is genuinely stressful. There is a lot of fear mongering on ARFcom, but this shit is for real. We are in new times.


No doubt about that dude
 Forgive me for laughing, but this is hilarious...many of us have been saying this for a long time...



+1
Link Posted: 6/6/2008 10:39:27 AM EDT

Quoted:

Quoted:
We've seen sporadic incidents of people *losing it* over gas prices....bet that continues, too.

HH



When do the riots start?


You laugh...but realize this: each time these prices go up, it squeezes independent truckers HARD. Many of them have unhitched their trailers. That means more unionized LDL's will be handling America's goods.
Did ya catch the word, "unionized" in there? Yeah....
And, for those lines that Aren't unionized, there are other concerns (many have connections to the mob---keeping their fingers in "legal" pies)

Riots?
I dunno...but shit could get bad fast should trucking get set off kilter, that's all I am saying.
Link Posted: 6/6/2008 10:39:46 AM EDT

Quoted:

Quoted:
An expensive station along pch has premium at 4.80


Regular is just about $4.50 here.


where is here?
Link Posted: 6/6/2008 10:41:17 AM EDT

Quoted:

Quoted:

Quoted:
An expensive station along pch has premium at 4.80


Regular is just about $4.50 here.


where is here?


I am guessing somewhere in CA.
Link Posted: 6/6/2008 10:42:02 AM EDT
Everything is fine.  I have been assured oil will go back down to $60 or so a barrel within a year or so by the 'economists" on arfcom.
Link Posted: 6/6/2008 10:43:06 AM EDT

Quoted:

Quoted:

Quoted:
We've seen sporadic incidents of people *losing it* over gas prices....bet that continues, too.

HH



When do the riots start?


You laugh...but realize this: each time these prices go up, it squeezes independent truckers HARD. Many of them have unhitched their trailers. That means more unionized LDL's will be handling America's goods.
Did ya catch the word, "unionized" in there? Yeah....
And, for those lines that Aren't unionized, there are other concerns (many have connections to the mob---keeping their fingers in "legal" pies)

Riots?
I dunno...but shit could get bad fast should trucking get set off kilter, that's all I am saying.



Dude, believe me I'm not laughing. I'm a Carpenter I have watched my quality of life steadily deteriorate in the last year, I have no doubt it's going to hit truckers very very soon, when that happens......it's on.
Link Posted: 6/6/2008 10:43:16 AM EDT
its about $4.30 in places around Eastern Oregon...

I saw one place that was up at $5.01 for regular.. wtf!!!!!
Link Posted: 6/6/2008 10:44:34 AM EDT

Quoted:

Quoted:

Quoted:

Quoted:
We've seen sporadic incidents of people *losing it* over gas prices....bet that continues, too.

HH



When do the riots start?


You laugh...but realize this: each time these prices go up, it squeezes independent truckers HARD. Many of them have unhitched their trailers. That means more unionized LDL's will be handling America's goods.
Did ya catch the word, "unionized" in there? Yeah....
And, for those lines that Aren't unionized, there are other concerns (many have connections to the mob---keeping their fingers in "legal" pies)

Riots?
I dunno...but shit could get bad fast should trucking get set off kilter, that's all I am saying.



Dude, believe me I'm not laughing. I'm a Carpenter I have watched my quality of life steadily deteriorate in the last year, I have no doubt it's going to hit truckers very very soon, when that happens......it's on.


Sorry...misunderstood your post.
And I'm a dude-ette.
Link Posted: 6/6/2008 10:48:38 AM EDT

Quoted:
Everything is fine.  I have been assured oil will go back down to $60 or so a barrel within a year or so by the 'economists" on arfcom.


You mean the ones that stayed at the Holiday Inn last night?  
Link Posted: 6/6/2008 10:49:43 AM EDT
It sure is a good thing that the gas stations didn't lower their prices due to the "barrels" going down throughout the week. They would have just had to raise them again. A lot of extra work for them.
Link Posted: 6/6/2008 10:54:00 AM EDT

Quoted:

Quoted:

Quoted:

Quoted:

Quoted:
We've seen sporadic incidents of people *losing it* over gas prices....bet that continues, too.

HH



When do the riots start?


You laugh...but realize this: each time these prices go up, it squeezes independent truckers HARD. Many of them have unhitched their trailers. That means more unionized LDL's will be handling America's goods.
Did ya catch the word, "unionized" in there? Yeah....
And, for those lines that Aren't unionized, there are other concerns (many have connections to the mob---keeping their fingers in "legal" pies)

Riots?
I dunno...but shit could get bad fast should trucking get set off kilter, that's all I am saying.



Dude, believe me I'm not laughing. I'm a Carpenter I have watched my quality of life steadily deteriorate in the last year, I have no doubt it's going to hit truckers very very soon, when that happens......it's on.


Sorry...misunderstood your post.
And I'm a dude-ette.


In my best Borat voice "Very nice"
Link Posted: 6/6/2008 10:55:00 AM EDT

Quoted:
It sure is a good thing that the gas stations didn't lower their prices due to the "barrels" going down throughout the week. They would have just had to raise them again. A lot of extra work for them.



Oh they'll be out there changing the numbers on the signs tomorrow morning.
Link Posted: 6/6/2008 10:56:40 AM EDT

Quoted:

Quoted:
It sure is a good thing that the gas stations didn't lower their prices due to the "barrels" going down throughout the week. They would have just had to raise them again. A lot of extra work for them.



Oh they'll be out there changing the numbers on the signs tomorrow morning.


At some point they're going to start suffering from "tennis elbow".
Link Posted: 6/6/2008 10:57:49 AM EDT

Quoted:
It's a fucking self fulfilling prophecy

If you predict oil will rise, and then fears based off your prediction cause it to rise, how fucked up is that??!?!

Anyone that says speculation isn't driving up the price of oil is a damned fool.


+1, but, but, it was all based on demand.  No one is powerful enough to talk it up... BS.  Someone just did.  
Link Posted: 6/6/2008 11:01:05 AM EDT
This is just a short price spike.  oil should drop to around 4130 a barrel by next week unless something happens, like Israel attacking iran.
Link Posted: 6/6/2008 11:02:21 AM EDT

Quoted:
good thing I got one of these


Dude, what happened to your tactical wheelbarrow?  

Oh, and someone was shooting at your Subaru.  

Anyway, one of the items in my Roth is up over 5% today.  Ticker: DBC.  It's an ETF that tracks a commodity index that has about 30% in crude and 20% in heating oil.  Needless to say, it's doing quite well for me.  

Gas prices aren't killing us yet, we just go to the "big city" (42k people, lol) a bit less since it's 20mi away.  Not going on those trips 3-4 times a week saves gas, and it means more $$$ in our pockets since we're not going to the movies, or eating out.  Cinemax, HBO, and some frozen pizza work just fine.

It's also a great excuse not to visit the in-laws!  
Link Posted: 6/6/2008 11:03:04 AM EDT

Quoted:

Quoted:
And in other news, Kuwaitis are enjoying their freedom (thanks to Americans) and are filling up their tanks at well below $1.00/gallon AND their oil barons are getting rich off of American oil purchases.




We should have let Kuwait and Saudi get what was coming to them.


Yup. All of them.
Link Posted: 6/6/2008 11:03:53 AM EDT

Quoted:
This is just a short price spike.  oil should drop to around 4130 a barrel by next week unless something happens, like Israel attacking iran.


Or until some d-bag comes out and "speculates" about what the price will be on "X" date and it drives the price up again.
Link Posted: 6/6/2008 11:08:24 AM EDT

Years ago there was a member here named Peak_Oil who broke the news about peak oil to ARFCOM. He was all Gloom and Doom.

He was laughed at, ridiculed and driven from the site.

I imagine he is still here under a different screen name. I assume he is gloating from his bunker.



Some pundits are saying that as much as 70% of current prices is speculator driven. The hedge funds are unregulated and needed a new home after the housing bubble burst. Too many cheap Dollars chasing too few real investments. Pray the bubble burst soon.


And rising oil prices raise the price of EVERYTHING else. I noticed a a few items lately. Bag of chips from $3.29 to $3.79. 20oz. Coke from $1.00 to $1.25 to $1.50 in 3 months.

I build Ford F-250s for a living. We're facing a 7 week layoff and more to come later in the year. The bright side is, I won't be burning much gas commuting.
Link Posted: 6/6/2008 11:13:19 AM EDT
Speculation might be some of it... but China and India are putting a lot of new cars on their roads every day... the gas and diesel for those cars has to come from somewhere..
Link Posted: 6/6/2008 11:15:05 AM EDT

Quoted:
Speculation might be some of it...


"Speculation" has lead to a $11 increase so far today.
Link Posted: 6/6/2008 11:20:23 AM EDT

Quoted:

Quoted:
Speculation might be some of it...


"Speculation" has lead to a $11 increase so far today.


Speculation or demand.. and who can really tell the difference..??..
Link Posted: 6/6/2008 11:24:16 AM EDT
Shush, all of you.

Link Posted: 6/6/2008 11:25:24 AM EDT

Quoted:

Quoted:

Quoted:

Quoted:
An expensive station along pch has premium at 4.80


Regular is just about $4.50 here.


where is here?


I am guessing somewhere in CA.


Buffalo, NY
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