NEW YORK, Jan. 2, 2008

Oil Prices Top $100 For First Time Ever

Violence In Nigeria, Rumors Of OPEC Shortfalls And Bad Weather Spark Supply Concerns

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(CBS/AP)  Oil prices jumped sharply Wednesday, setting a new trading record and reached $100 a barrel for the first time ever on supply concerns sparked by renewed violence in Nigeria and a warning that OPEC may not be able to meet its share of global oil demand by 2024.

Word that several Mexican oil export ports were closed due to rough weather added to the gains.

In Nigeria, bands of armed men invaded Port Harcourt, the center of the oil industry Tuesday, attacking two police stations and raiding the lobby of a major hotel. Four policemen, three civilians and six attackers were killed. The Niger Delta Vigilante Movement claimed responsibility for the attack.

"Although the violence has not impacted oil flow out of the country, it has reignited supply concerns as militant attacks have reduced Nigeria's crude output by roughly 20 percent since 2006," said John Gerdes, an analyst at SunTrust Robinson Humphrey in a research note. Nigeria is Africa's largest oil producer.

Surging economies in China and India fed by oil and gasoline have also contributed to prices soaring over the past year.

Separately, the Organization of Petroleum Exporting Countries said its member nations may not be able to meet demand as early as 2024, though OPEC also said that deadline could slide for decades if members increase production more quickly.

CBS News correspondent Alexis Christoforous said since the futures price quickly fell back after hitting the $100 mark, it's not yet clear if the price is sustainable.

"A part of it could have been a psychological barrier," Christoforous said. "Now that we've hit the $100 dollar a barrel mark, we may start to see prices ease back."

Still, the warning gave investors pause, said Amanda Kurzendoerfer, an analyst at Summit Energy Services Inc. in Louisville, Ky.

"They're talking about, in 20 years, not being able to meet demand," Kurzendoerfer said.

Light, sweet crude for February delivery rose $3.38 to $99.36 a barrel on the New York Mercantile Exchange Wednesday. News of the Mexican port closures added to the supply concerns, pushing crude futures as high as $99.60, a new trading record. The three ports handle most of Mexico's 1.7 million barrels of daily exports.

Oil last traded over $99 a barrel on Nov. 26, a few days after rising to a previous record high of $99.29. Oil prices are 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.

Trading volumes were about 50 percent of normal Wednesday, meaning the price move was likely exaggerated by speculative buying.

"I would imagine the speculators are the biggest drivers today," said Phil Flynn, an analyst at Alaron Trading Corp., in Chicago.

Stocks pulled back Wednesday in as the spike in oil prices, along with a weaker-than-expected reading on the manufacturing sector, triggered concerns of a further slowdown in the overall economy. The major indexes each lost more than 1 percent, with the Dow Jones industrials giving up more than 200 points.

At the pump, meanwhile, gas prices rose 0.6 cent Wednesday to a national average of $3.049 a gallon, according to AAA and the Oil Price Information Service. Gas prices, which typically lag the futures market, have edged higher in recent days as oil has approached $100.

Michael Fitzpatrick, vice president of energy at MF Global, told CBS Radio that consumers will feel the pinch of those higher prices.

"Every time the bumper of the SUV goes across the curb of the driveway to soccer practice or ballet lessons or whatever, it's going to cost more and more and more," Fitzpatrick said.

Gas prices peaked at $3.227 a gallon in May as refiners faced unprecedented maintenance issues and struggled to produce enough gasoline to meet demand. A similar scenario is expected this spring, when gas prices could peak above $3.40 a gallon, according to the Energy Department's Energy Information Administration.

But until the production rises in the spring to meet summer driving demand, gasoline prices will follow oil's lead, analysts say. Oil prices have risen in recent weeks in part on concerns about supply disruptions in Iraq and Nigeria, and as domestic inventories have fallen for several weeks in a row.

Inventories likely fell last week by 1.8 million barrels, according to the average estimate of analysts surveyed by Dow Jones Newswires. That expectation was also pushing oil prices higher, analysts said.

"(A decline) is not anything unusual for this time of year, but when it happens for 7 weeks in a row, it starts to add up," Kurzendoerfer said.

The EIA's inventory report, delayed until Thursday this week due to the New Year's holiday, is also expected to show gains in gasoline supplies and refinery activity, and a decline in supplies of distillates, which include heating oil and diesel.

In other Nymex trading Wednesday, February heating oil futures rose 9.28 cents to $2.7422 a gallon while February gasoline futures climbed 8.07 cents to $2.5717 a gallon. February natural gas futures advanced 26 cents to $7.743 per 1,000 cubic feet.

In London, February Brent crude rose $3.08 to $97.55 a barrel on the ICE Futures exchange.

© MMVIII, CBS Interactive Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.

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Add a Comment See all 465 Comments
by allunknowing January 2, 2008 1:06 PM PST
Who cares, we''re still going to buy it no matter the price and then use it like we''re never going to run out.
Reply to this comment
by arthall33 January 2, 2008 1:08 PM PST
Unless we fix the dollar by voting for Ron Paul..we will see $200 a barrel oil by the end of the year....
Reply to this comment
by ejcspau January 2, 2008 1:11 PM PST
Funny Bush has no comment on rising oil prices, oh wait, he''s making money. Silly me!
Reply to this comment
by michellem99-2009 January 2, 2008 1:15 PM PST
Dears, I saw the headline as breaking news and told my room mate the price of a barrel. They still want to drive. I can''t. That hurts us all in the pocketbook/purse/wallet.Everything goes up. What a pity. I am on a fixed income. We can''t afford them jaking up the prices.
Reply to this comment
by killtheliars January 2, 2008 1:18 PM PST
The biggest joke in all of this is Mexico halting exports to try and keep the price high. WE should take evey illegal and round them up and dump them over the border and at the same time let everyone know there are no freebees any more, if you get caught crossing illegally you get shot. See how well thier government handels the influx of poor uninsured sick people who were sucking up free services in the US.
Also we need to bill Mexico for every service we have provided to their people (every kid schooled, every mother that gave birth, every sick person, every illegal in prison)and tell them we''ll take oil. If they say no tell them they have one month, and then every week after that we take an oil producing region from them. They would have no chance, the U.S. Coast Guard could take over that arm pit of a country.
Finally they have been moochiong off of the U.S. for to long, they owe us, it does not matter if I have two cars and 4 TVs and they live in a shack, I need to be paid back. My standard of living is more important then evey person in that so called nation.
Reply to this comment
by harp1963 January 2, 2008 1:19 PM PST
I hope it hits $1000 dollars a barrel. America needs a good depression with all of us struggling to find our next meal.
Reply to this comment
by underdogus January 2, 2008 1:24 PM PST
Mexico halting exports to try and keep the price high. ha haaa lol you MORON its the ECONOMY $$$ we will do business with other countries no problem!!!
Reply to this comment
by underdogus January 2, 2008 1:26 PM PST
HHA A HHAAAA MEXICO!! THE THIRD LARGEST SUPPLIER TO THE US, REMEMBER THAT, YOU IDIOTS!!! $$$$$$$$$$$$$$
Reply to this comment
by omega39-2009 January 2, 2008 1:27 PM PST
This is what happens when cowboy diplomacy is used to antagonize almost every large oil producing nation while speculative markets are able to inject their fear and greed into the price structure.
Reply to this comment
by shanev137 January 2, 2008 1:27 PM PST
I hope it goes to $200 a barrel really soon.

We deserve to be bankrupted by the speculators.
Reply to this comment
by killtheliars January 2, 2008 1:28 PM PST
underdogus,

The thing is Mexico owes us for putting food in thier mouths, If we need it we have the right to take it by force if necessary, unlike in Iraq and the Middle East where we don''t belong. No country has ever sucked up free services from the U.S. like Mexico.
A perfect example is the current plan to send already subsidized farm goods (farm goods paid for with US tax dollars) to Mexico so those leaches can buy the stuff for next to nothing. Meanwhile I am paying $2.00 for a head of lettuce.
Reply to this comment
by davek455 January 2, 2008 1:30 PM PST
Greedy, addicited-to-oil Americans need to pay even more at the pump. So they appreciate life more. HUGE SUVs, 4-wheel drives they don''t need. Running all over the place transporting their spoiled rotten kids to various stupi things. Living in HUMONGOUS 4 and 5 bedroom homes, sucking up resources. What American wants or would allow their child to pick lettuce or tomatoes in the field? NONE. Have any of you ever slept with an illegal? I have. It''s way hot.
Reply to this comment
by hypnotoad72 January 2, 2008 1:31 PM PST
harp1963 - you can starve all you want. Leave other people out of it.
Reply to this comment
by sdcjd1 January 2, 2008 1:32 PM PST
buy a hybrid
Reply to this comment
by jetranger7 January 2, 2008 1:33 PM PST
Yip- put a Texas Oil Man in office and this is what you get him and his Corrupt-Fraudulent Arrogrant Phony Cronies are gonna put it to you, I said this back in 2001, but everybody just looked on !! I also blame the day traders and Wall-Strret morons for doing this as well !!! If everybody will hold on a second, I have to "SNEEZE", that too will drive up the price of oil probably another 50 or 100 dollars a barrell, here it comes I''m gonna Sneeze !!!!!!!!!!! Theres goes the price of groceries, MILK, Gas - Diesel, and home heating Oil, whoops I just Sneezed again !!!!!! Wait till about June or July, when the price is about $125.00 to $150.00 a barrell, and Gas is 5.00 to 8.00 dollars a barrell or more !!! Its coming- watch out, its BUSH & CHENEYS last Year in office too !!!! Ohh ya, their gonna tell ya to conserve, while they sport around on Airforce 1, eating up huge amounts of fuel too !!!!
Reply to this comment
by underdogus January 2, 2008 1:34 PM PST
The thing is Mexico owes us for putting food in thier mouths haaa haaa NOT ANY MOOE HONEY!! we are doing fine with out you we dont need the US to survive!! : )
Reply to this comment
by gunownerdan January 2, 2008 1:35 PM PST
"Oil Prices Top $100 For First Time Ever"

No doubt Bush and his Saudi boyfriends are happy about this.
Reply to this comment
by underdogus January 2, 2008 1:35 PM PST
ITS THE ECONOMY YOU IDIOTS!!! MEXICO IS DOING FINE!!!
Reply to this comment
by killtheliars January 2, 2008 1:36 PM PST
underdogus,

Since they are meeting with OPEC members in order to cut production then we in the U.S. have a right to undermine the Mexican economy. They are ready to repeal NAFTA anyway, so you guys south of the border are screwed. You might be laughing now but when the peso is not worth toilet paper (I use them for that now) we''ll see who is laughing then. and if your family tries to cross the border to get food we''ll be waiting.
MEXICO SUCKS, it is a failed country
Reply to this comment
by underdogus January 2, 2008 1:37 PM PST
MEXICO GOT OIL!!!!!!! $$$$$$$$
Reply to this comment
by underdogus January 2, 2008 1:38 PM PST
WE WILL
SWITCH TO THE EURO!! NO PROBLEM haaa haaaa
Reply to this comment
by underdogus January 2, 2008 1:40 PM PST
haaa hhhaaa haaa Vicent Price laugh...
Reply to this comment
by cynusps-2009 January 2, 2008 1:40 PM PST
I think everyone has gotten off track. We as Americans need to use more of our own resources and develop news sources of energy. We need to stand on our own 2 feet and stop depending so much on other countries. We also need to quit giving so much to other countries when our own people need so much. Send illegals back home and take care of our own CITIZENS.
Reply to this comment
by fornicario January 2, 2008 1:41 PM PST
I find the inflation figure stated in that article the most horrifying thing listed. 38 dollars in 1984 equals 96 dollars now? Our money has been devalued by more than half in the past twenty years? I''m more spooked by that thought than anything else.
Reply to this comment
by bobnjersey January 2, 2008 1:42 PM PST
[In Nigeria, bands of armed men invaded Port Harcourt, the center of the oil industry Tuesday, attacking two police stations and raiding the lobby of a major hotel.]

well ... thank god we''re not reliant on foreign oil anymore!
Reply to this comment
by davek455 January 2, 2008 1:44 PM PST
killtheliars - I make over $100K a year and live in a nice apartment in Manhattan. Hardly poverty stricken. Certainly not a shack. My points are: illegals are humans and resemble many of us. Those that I have had relationships with have been singers and models. They''re awesome, talented people not stealing anyone''s jobs. Unless you feel sorry for singers and models, but I doubt you are.
- my ecological footprint is small. I am not jealous, I am ashamed at how greedy and how polluting Americans are.
Reply to this comment
by underdogus January 2, 2008 1:47 PM PST
I LOVE IT!!! I LIVE IN MEXICO $$$$
Reply to this comment
by underdogus January 2, 2008 1:48 PM PST
PETROLEOS MEXICANOS PEMEX OH YEAH $$$$
Reply to this comment
by gunownerdan January 2, 2008 1:50 PM PST
I want a car than runs on water or ****.
It''s a possibility, but the oil companies will no doubt do their best to destroy it.
Reply to this comment
by omega39-2009 January 2, 2008 1:52 PM PST
I want a car than runs on water or ****.
It''''s a possibility, but the oil companies will no doubt do their best to destroy it.

Posted by gunownerdan

Better yet, one that runs on BS, we''re hip deep in that commodity here in the US.
Reply to this comment
by underdogus January 2, 2008 1:52 PM PST
Send illegals back home and take care of our own CITIZENS.
Posted by cynusps send them no problem you will pay $$ MORE AT THE PUMP!! : ) haaa ha ( Vincent Price) ; )
Reply to this comment
by gunownerdan January 2, 2008 1:55 PM PST
"Oil Prices Top $100 For First Time Ever"

I guess the Saudis need more gold toilets for their personal jumbo jets.
Reply to this comment
by underdogus January 2, 2008 1:57 PM PST
PEMEX # 1 oh YEAH PEMEX!!! WE GOT OIL!!!!! you friggin GRINGOS ; ) $$$$$$$$$$$$$
Reply to this comment
by micma-2009 January 2, 2008 1:57 PM PST


Nice job Bu$hies!


Reply to this comment
by davek455 January 2, 2008 2:01 PM PST
Did you know that if all illegals were deported you''d pay 25% more for your groceries? 25% more for your food at restaurants. 25% more for your homes. You''d make less profit when you flipped your home. And oh my gosh, your little Kaitlen and Brandon may actually have to perform manual labor and mow the lawn rather than sitting on their fat arses downloading iTunes all day.
Reply to this comment
by bobnjersey January 2, 2008 2:04 PM PST
[Oil prices jumped sharply Wednesday, setting a new trading record and reached $100 a barrel for the first time ever ...]

air is free ... at least right now ...

http://www.theaircar.com
Reply to this comment
by micma-2009 January 2, 2008 2:04 PM PST


This story is about oil prices.


Reply to this comment
by fornicario January 2, 2008 2:06 PM PST
Did you know that if all illegals were deported you''''d pay 25% more for your groceries? 25% more for your food at restaurants. 25% more for your homes. You''''d make less profit when you flipped your home. And oh my gosh, your little Kaitlen and Brandon may actually have to perform manual labor and mow the lawn rather than sitting on their fat arses downloading iTunes all day.

Posted by davek455

Maybe yes, maybe no. But I fail to see how illegal immigrants have a hand in oil trading and how big oil is making money on the backs of the working class. I doubt the landscaper has a NYMEX oil trading account.
Reply to this comment
by underdogus January 2, 2008 2:06 PM PST
A FRIENDLY MESSAGE...PEMEX!!!!
Reply to this comment
by underdogus January 2, 2008 2:07 PM PST
PEMEX = $$$$$$
Reply to this comment
by beckajw January 2, 2008 2:09 PM PST
Did you know that if all illegals were deported you''''d pay 25% more for your groceries? 25% more for your food at restaurants. 25% more for your homes.

That is the stupidest thing I have ever read. If all illegals were deported, we wouldn''t be paying taxes to send their kids to school (they don''t pay taxes). If all illegals were deported, we would have more jobs for those of us who are here legally.

I have no problem whatsoever with immigrants. But the key word is ILLEGAL. If you don''t do it legally, you don''t deserve to be here. There are so many waiting in the system and following the rules, it is unfair to allow illegals the same benefits.
Reply to this comment
by underdogus January 2, 2008 2:09 PM PST
SEAL THE BORDER???? HUH?
Reply to this comment
by killtheliars January 2, 2008 2:10 PM PST
davek455,

i stand corrected. As long as you or anyone else are here legally I have no problem. I really don''t care about my ecological footprint, or anyone elses, if you can afford it you should be able to do it.
I do have a problem with the mentality that I should work 50+ hours a week and then give part of my earnings to others. Then to have them get handouts from me and then try and squeeze me for more money through raising the price of oil is a joke.
If the U.S. were to make a deal with Chavez to get enough oil to to be able to ignore Mexico the word would call us evil for cutting them off economically, but on the other hand it is ok for them to put the screws to us because we enjoy a better standard of living. That is unfair, and anyone or anything who tries to re-distribute income, especially to other countries will be destroyed.
Reply to this comment
by underdogus January 2, 2008 2:10 PM PST
If all illegals were deported, we would have more jobs for those of us who are here legally hhaa hhaaa oh YEAH but you will be PAYING MORE $$$$$$$$ haaaa haaa
Reply to this comment
by williamsa11 January 2, 2008 2:11 PM PST
Does everyone realize that this is about nothing but greed. All these excuses are bull****! The oil companies continue to post record profits each quarter. Nothing will change until they break the country, and that will be soon.
Reply to this comment
by underdogus January 2, 2008 2:12 PM PST
I LOVE IT!!!! PEMEX ALL THE WAY!!! $$$$$$$ WHAT''s IN YOUR WALLET!!????
Reply to this comment
by underdogus January 2, 2008 2:14 PM PST
Posted by beckajw at 02:09 PM : Jan 02, 2008
haaa LISTEN TO THIS GUY hhhaaaa ha haa haaa
Reply to this comment
by micma-2009 January 2, 2008 2:16 PM PST


Big oil is pricing and polluting itself into obsoletion. Thanks Bu$hies!

Check out Air Cars on youtube.


Reply to this comment
by davek455 January 2, 2008 2:16 PM PST
The illegals I know all paid taxes. City, state and federal taxes, as well as Social Security taxes. Using other people''s social security numbers. But they''ll never collect on Social Security. Therefore the US Gov''t makes a profit. They''ve run the analyses. Despite free services for medical care, schooling, they don''t collect in other areas. They pain in more than they take out. Our unemployment rate is around 4+ percent. Where are all the unemployed Americans that they''re taking jobs from. I don''t know a single American family that would allow their kid to grow up and work in the hot fields picking produce. No way. Not today, kids just don''t aspire to do that for a living.
Reply to this comment
by underdogus January 2, 2008 2:18 PM PST
PEMEX # 1 THE THIRD SUPPLIER OF THE US!!!! $$$
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