Crude Oil Price Skyrockets to New High!

[Daniel_Plainview]

Gasoline: $3 by Christmas and a 'Mini-Apocalypse' in Spring?

By CHARLES WALLACE Posted 6:30 AM 12/08/10 Energy, Economy

With crude oil prices at the highest level in more than two years, holiday shoppers face the agony of $3-a-gallon gas this holiday season -- and much higher prices likely by springtime. "It now look as if December 2010 is probably going to be the most expensive month for gasoline in the U.S. since September 2008," says Tom Kloza, chief oil analyst at Wall, N.J.-based Oil Price Information Service.

Crude oil hit $90 a barrel on Tuesday, its highest point since 2008, when prices were plunging from that summer's high of $145 a barrel in the worst energy crisis of the last decade. Gas topped out at $4.11 a gallon, prompting people to sell their SUVs, buy gold and worry about the future.

Gas prices nationally now average about $2.95 for a gallon of unleaded regular, but they're already at $3.22 in New York, $3.21 in California and $3.02 in Illinois. Philip Verlger, an oil analyst at the University of Calgary who publishes The Petroleum Economic Monthly, says the current price spike was initially caused by a problem at a refinery in Nova Scotia that hit the U.S. East Coast first. "Gasoline prices went way up, and that pulled crude up," Verleger says. "Add to that the fact that it got cold, when heating-oil and natural-gas prices tend to go up, and they went up a little. That added $10 to the price of crude."

Kloza believes gasoline prices will hover around $3 a gallon until Christmas, and then drop back until spring. But then he expects them to surge dramatically, perhaps as high as $3.50 a gallon. "That will be a mini-apocalypse for a lot of people," Kloza says, adding that while the price increase will be painful, he doesn't think it will be long-lasting.

(snip)

The U.S. has never had $3-a-gallon gas at Christmastime, reflecting the fact that gas prices typically get lower as the days grow shorter. Gas was at $3 for about six months in 2008 and for brief periods after hurricanes, but never in the winter months.

Verlger thinks [gas] prices may hit $3 later this year but then fall back a bit as demand for products such as gas and heating oil on the East Coast eases after Christmas. Says Verleger: "Products lead crude."

See full article from DailyFinance:

[OilFinder2]

Here's the Comex futures for CL:
http://www.cmegroup.com/trading/energy/ ... crude.html
^
Notice that futures prices for 2014-early 2016 are priced $1-$2 *lower* than the price of the current contract. If traders were anticipating increasing shortages then, the price of those future contracts would be higher than the current price, not lower.

The backwardation is completely gone. That didn't last. But the futures curve is still very flat.

[sparky]

.
The market is spooked , oil price could move both way
It's a finely balanced equation with growth , the U.S. dollar and depletion as main factor
the Iran situation should be for show but things have a way of going pear shape

[Daniel_Plainview]

NYMEX recently touched $90/bbl, and closed up 0.5 percent at $89.82 (January 2011 contract), representing a 14-month high:



Crude Closes at 14-Month High as Oil Prices Continue to Rise

Posted by Josh Garrett on December 21, 2010 at 4:52 pm

General optimism that economic recovery is underway in the US helped send crude to a 14-month-high closing price at the NYMEX on Tuesday. Trading at the NYMEX was light today as the Christmas and New Year’s holidays approached, but crude and heating oil prices continued to climb, and the price of crude oil closed at its highest level since October 2008. Prices received support from economic optimism in the US that raised hopes of growing demand for petroleum products in the near future. A modest increase in the S&P 500 index of US stocks helped support hopes of an economic recovery and lent support to oil prices. Anticipation of another round of bullish petroleum inventory data also helped lift oil prices, with the API report due out late Tuesday and the EIA report to be released Wednesday morning. Today’s moderate price increases will likely bring a three-cent increase in retail heating oil prices tomorrow.

[Xenophobe]

NYMEX recently touched $90/bbl, and closed up 0.5 percent at $89.82 (January 2011 contract), representing a 14-month high:

deleted Doesn't even touch the real price of crude during the bad old days of the 70's, or even 2008.

We need $250/bbl, and we need it NOW! I say we take up a letter writing campaign, try and convince our fearless leaders to let us have what we REALLY need....$250/bbl crude!

Its time to feel the burn baby....embrace the horror!

[pstarr]

deleted

do you have anything new to say?

[Daniel_Plainview]

Larger Than Expected BOE Drawdown Sends Crude Off To The $100/Barrel Races

Submitted by Tyler Durden on 12/22/2010 10:42 -0500


After WTI passed the $90 barrier with firm determination, as we highlighted earlier, the most recent DOE Crude Oil Inventories number confirms that the far larger than expected draw down is accelerating. As readers will recall, after last week's massive drawdown of 9.854 million barrels which was the largest in 9 years, today's number was another stunner, coming in at 5.333 MM on expectations of 3.4 MM. The result: WTI spikes and is last seen at $90.64. And as a reminder every $1 rise in oil decreases U.S. GDP by $100 billion per year and every 1 cent increase in gasoline decreases U.S. consumer disposable income by about $600 million per year. The move in oil in the past week alone has almost entirely wiped out the most recent stimulus. Furthermore, as we suggest earlier, now that $90 is in the history books, $100 is coming, and may be here within a few weeks. At that point Bernanke may have some problems explaining how he is "100% confident" that the surge in gasoline prices is completely and totally not as a result of his deranged genocidal tendencies.Don't worry though, hedge fund managers around the world will be more than happy to afford the surging prices. Remember: wealth effect!

[Daniel_Plainview]

Gas Prices Climb to Highest Level Since Oct. 2008 as Oil Supply Drops

Posted on 22 December 2010.
With oil costs surging past $90 a barrel, gas prices climbed to an average of $3 a gallon this week, the highest estimate since October of 2008, reports said Wednesday. Analysts with AAA, Wright Express and Oil Price Information Service said the national average for pump prices has skyrocketed 13 cents from a month ago. They expect filling stations to charge $3.50 a gallon or more by spring of 2011.

Benchmark oil climbed 43 cents to $90.25 in midday trading on the New York Mercantile Exchange as the government reported a shortage of the nation’s crude oil supplies. The Energy Department’s Energy Information Administration announced that crude supplies declined 5.3 million barrels last week compared to the week before. The administration also noted that gasoline supplies increased by more than 2 million barrels.

[Xenophobe]

Larger Than Expected BOE Drawdown Sends Crude Off To The $100/Barrel Races

EXCELLENT!!! $100 races? Poppycock! $200 is what we need...MINIMUM. And then we need a way to keep it there, short term price spikes as a result of one peak oil or another do not help out our long term transition to a new, less crude intensive lifestyles.

[dolanbaker]

Larger Than Expected BOE Drawdown Sends Crude Off To The $100/Barrel Races

EXCELLENT!!! $100 races? Poppycock! $200 is what we need...MINIMUM. And then we need a way to keep it there, short term price spikes as a result of one peak oil or another do not help out our long term transition to a new, less crude intensive lifestyles.

I'm so glad I don't live in the US! A rapid rise in fuel prices is like a bare arsed spanking! at least we have the padding of taxes to reduce the affect!

Impoverishing significant sections of the population doesn't reduce fuel consumption half as much as proper planning for a reduced fuel environment.

By which, I mean building towns that are not car dependant, electric cars are only a stopgap, they don't resolve the real problem of excessive energy dependancy.

[Xenophobe]

Impoverishing significant sections of the population doesn't reduce fuel consumption half as much as proper planning for a reduced fuel environment.

This being America, we can CHOOSE to pay twice as much, or more, for our fuels, or we can change our behavior and benefit everyone on the planet. So impoverished isn't the right concept, helping out our fellow man through shared sacrifice is.

You are welcome.

[pstarr]

Impoverishing significant sections of the population doesn't reduce fuel consumption half as much as proper planning for a reduced fuel environment.

This being America, we can CHOOSE to pay twice as much, or more, for our fuels, or we can change our behavior and benefit everyone on the planet. So impoverished isn't the right concept, helping out our fellow man through shared sacrifice is.

You are welcome.

You can afford such luxaries because you are a paid shrill. Bakken money anyone? It's easy. Just pimp yourself and your family.

[Daniel_Plainview]

Here we go ... wheeee ...

Crude Passes $91.47, As $100 Billion In US GDP Is Wiped Out In Minutes

Submitted by Tyler Durden on 12/23/2010 12:00 -0500

A few days ago, when oil was pushing on $89 we said that we expect oil to pass $100 in a few weeks, now that chasing returns in stocks is beyond ludicrous, and speculators are branching out to those commodities which have not yet been cornered by the JP Morgue, although we are confident the Masters brain trust is plotting and scheming how to create a synthetic security that allows crude to hit $150 as RBOB goes negative. As of a few minutes ago, WTI has just passed $91, which for those who have taken math means that $100 oil is less than $9 away. And as a reminder, every $1 rise in oil reduces US GDP by $100 billion, just as every cent increase in gas prices lowers disposable income by $600 million.

ZeroHedge

[dolanbaker]

This will be a double whammey for us in the Eurozone, the decline of the Euro is faster than that of the dollar at the moment, it's only the high fuel taxes that partially hide the rise.

Edit: look at Brent crude!
Brent Crude Oil Futures $/barrel 94.27 +0.62 +0.7
[url]http://www.bbc.co.uk/news/business/market_data/chart?chart_primary_ticker=ICEEUR:BRNG1&chart_time_period=1_day&canvas_colour=000000&primary_chart_colour=CC0000&use_transparency=0&plot_colour=ffffff&cp_line_colour=1F4F82&margin_left=35&margin_bottom=20&margin_right=20&time_24hr=1&tiny_chart=1&tiny_month_view=1&logo_strength=light&y_axis_left=1&x_axis_plain=1&cp_line=1&cp_line_style=dotline&charting_freq=1_minute&co_dimension^width=529&co_dimension^height=190[/url]

[Xenophobe]

Here we go ... wheeee ...

EMBRACE THE HORROR!!! BRING ON THE PRICE SPIKES!!! If there is one thing which can cure a crack hoe's addiction, its not being able to support their habit anymore. STARVE THE BEAST!!!!

[americandream]

Here we go ... wheeee ...

EMBRACE THE HORROR!!! BRING ON THE PRICE SPIKES!!! If there is one thing which can cure a crack hoe's addiction, its not being able to support their habit anymore. STARVE THE BEAST!!!!

What say thee other than to sound sullen?

[Xenophobe]

Here we go ... wheeee ...

EMBRACE THE HORROR!!! BRING ON THE PRICE SPIKES!!! If there is one thing which can cure a crack hoe's addiction, its not being able to support their habit anymore. STARVE THE BEAST!!!!

What say thee other than to sound sullen?

SULLEN? Are you kidding. I'm tired of WAITING. Nonstop claims of peak this, peak that, and all of us sitting around drooling, waiting for the horrifying spectacle just to say "we told you so".....and what happens? People are now pretending like $90 oil is a big deal? 25 month highs? PLEASE!

Its been 5 years since peak, 2-1/2 years since peak price, and we can't even sustain a shortage environment in the worlds largest crack hoe crude consumer. I'm tired of waiting, we DESERVE a decent countrywide shortage, planes grounded for lack of fuel, farmers given emergency diesel priority to get the crops in, soliders forced to hold and defend their positions in Afghanistan for lack of air support, this is what peak oil is all about...and so when people pretend $90 oil is a big deal I want to puke. Its trying to make a mountain out of a molehill, and its only being done because we CAN'T have what we DESERVE, skyrocketing prices, shortages, hording, thieves stealing from peoples unlocked gas tanks, we used to have ALL of that kind of stuff back during the 70's peak oils and recessions. I've been prepping for this for YEARS, and I want it to happen so I can GLOAT.

I want to rub it in my neighbors face that I can EV to work, skip the fuel lines, ignore gasoline prices. I want to laugh when they lament how they had to stop buying Starbucks coffee so they could get a few more gallons of fuel, I want to sneer at those forced to ride the bus because they didn't acquire their Honda GX, Volt or Leaf, prior to them becoming in such short supply that people are picking theirs up at the factory gates.

I demand my peak oil consequences! Now! Bring on $250/bbl! Stop pretending this $90 nonsense is anything more than what we should have had in the early 80's, $150 in the 90's, $200 in the first decade of the 21st century, and $250/bbl now!

[dolanbaker]

I've been prepping for this for YEARS, and I want it to happen so I can GLOAT.

I want to rub it in my neighbors face that I can EV to work, skip the fuel lines, ignore gasoline prices. I want to laugh when they lament how they had to stop buying Starbucks coffee so they could get a few more gallons of fuel, I want to sneer at those forced to ride the bus because they didn't acquire their Honda GX, Volt or Leaf, prior to them becoming in such short supply that people are picking theirs up at the factory gates.

You assume that you still have a job as the jacking up of oil prices will reverberate through the whole economy, in this instance, the only thing you won't have to worry about is raised petrol prices. But don't forget that the cost of fuel is factored into the price of almost everything that is ever sold.

[Xenophobe]

I want to rub it in my neighbors face that I can EV to work, skip the fuel lines, ignore gasoline prices. I want to laugh when they lament how they had to stop buying Starbucks coffee so they could get a few more gallons of fuel, I want to sneer at those forced to ride the bus because they didn't acquire their Honda GX, Volt or Leaf, prior to them becoming in such short supply that people are picking theirs up at the factory gates.

You assume that you still have a job as the jacking up of oil prices will reverberate through the whole economy, in this instance, the only thing you won't have to worry about is raised petrol prices. But don't forget that the cost of fuel is factored into the price of almost everything that is ever sold.

Of course. And guess what happened the LAST time prices spiked? Lots of people didn't lose their jobs, the prices of some stuff went up, and BAU kept right on grinding out BAU. Except some of us have since acquired means of transport which isn't entirely dependent on crude supplies. What we need are skyrocketing prices to show everyone who didn't learn the correct lesson the second time this happened (the first was during the peak oils and shortages of the 70's). I say we repeat the lesson as necessary, or better yet, just tax oil to the required level ($250/bbl) and stop messing around waiting for the market to fix this for us.

[Daniel_Plainview]

NYMEX recently touched $90/bbl, and closed up 0.5 percent at $89.82 (January 2011 contract), representing a 14-month high:

deleted Doesn't even touch the real price of crude during the bad old days of the 70's, or even 2008.

We need $250/bbl, and we need it NOW! I say we take up a letter writing campaign, try and convince our fearless leaders to let us have what we REALLY need....$250/bbl crude!

Its time to feel the burn baby....embrace the horror!

You cornies are getting desperate: you no longer argue that PO is a non-issue; rather, now that you've accepted the reality of PO (with its inexorable upward pressure on prices), you're left with no choice but to grasp at rationalizations for higher oil prices ... namely, the rationalization that "higher oil prices will force people to conserve" ... and "higher oil prices are good for the world over the long-term."

That's your last gasp of an argument, so I hope you use it well.