Oil Prices Briefly Top $103 A Barrel

Record Prices Retreat After Sell-Off, But Experts Warn Fuel Prices May Rise Again

(AP)  Oil futures retreated from a new overnight record above $103 as the dollar gained strength and Turkish forces withdrew from northern Iraq.

The slumping dollar and tension in the oil-rich Middle East have been among the factors in crude's dramatic 19 percent rise in February.

Still, many analysts believe any declines may be temporary and that oil is poised to rise above $103.76 a barrel. That's the price many believe to be oil's all-time high, on an inflation-adjusted basis, set in early 1980 during the Iranian hostage crisis.

Gasoline and diesel prices, meanwhile, continued to soar.

Gas prices rose 0.3 cent overnight to a national average of $3.164 a gallon, creeping closer to last May's record of $3.227 a gallon, according to AAA and the Oil Price Information Service. Diesel prices jumped 1.5 cents to a new record national average of $3.642 a gallon.

While most Americans fuel their cars with gasoline, most of the products they buy are transported by trucks, trains and ships that burn diesel. While gas prices are unlikely to rise as high as $4 a gallon, diesel may well pass that psychologically important level this spring, boosting prices of nectarines, computers, clothing and virtually every other consumer product, said Tom Kloza, publisher and chief oil analyst at the Oil Price Information Service in Wall, N.J.

"It's everything that gets shipped," Kloza said of diesel fuel's impact on the economy. "That is the one that is much scarier."

Gas and diesel prices are following light, sweet crude oil, which spiked to a new record of $103.05 overnight before falling 75 cents to settle at $101.84 a barrel on New York Mercantile Exchange.

In London, Brent crude futures fell 80 cents to settle at $100.10 a barrel on the ICE Futures exchange.

Analysts cited profit-taking by investors who have bought into oil's recent runup for Friday's declines.

The dollar rose against the euro Friday, reversing one of the factors that has attracted huge flows of investment capital to the oil market. Crude futures offer a hedge against a falling dollar, and oil futures bought and sold in dollars are more attractive to foreign investors when the dollar is falling. That logic tends to reverse itself when the dollar strengthens.

Also giving investors reason to sell was Turkey's decision to withdraw its forces from northern Iraq, which they invaded earlier this week in search of Kurdish rebels. Turkish attacks on Kurds in northern Iraq — and the concern that Kurds would retaliate by cutting off oil supplies — have helped propel oil to new records in recent months.

Traders also continue to fret over OPEC, which meets next week to consider production levels. The prospect that the Organization of Petroleum Exporting Countries might cut production has helped fuel oil's recent rise. But with prices holding above $100, most analysts now expect OPEC to hold production steady.

Despite oil's modest retreat Friday, many analysts believe the investment flows that have pushed prices higher this year are not about to dry up.

"We've just got a huge, huge speculative drive going on here," said Jim Ritterbusch, president of Ritterbusch and Associates, an energy consultancy in Galena, Ill. "The fresh buying brings in new buying."

Many analysts believe the underlying fundamentals of oil supply and demand do not justify such high prices. Some predict speculative investing could push oil prices as high as $120, while others argue prices have formed a bubble, and could crash back to the $70 range.

Other energy futures were mixed Friday. In other Nymex trading, March heating oil fell 0.59 cent to settle at $2.8397 a gallon while March gasoline futures rose 1.66 cents to settle at $2.5123 a gallon. Both contracts expired after the close of trading.

April natural gas futures fell 7.7 cents to settle at $9.366 per 1,000 cubic feet on the Nymex.

[wardoglrs]

Learn the truth
http://www.ideachannel.tv/

[wardoglrs]

Milton Friedman answer''s the problem

http://www.ideachannel.tv/

[libsrweak]

Posted by SamTheTVCat at 04:59 PM : Feb 29, 2008
+ report abuse

*********

i guess you dont know my history..I am the biggest advocate for oil conservation..I BEEN TAUNTING LIBERALS SINCE DAY ONE about thier feindish need for oil BUT REFUSE TO SECURE IT..they would rather plaster a ''no war for oil'' bumper sticker and everything will be a okay..HEY I RIDE THE FU CKING BIKE EVERY FU CKING DAY..and guess..liberals with thier suvs with ''war is not the answer'' stickers are constatly trying to run people over.
you talk like a helpless fool..try doing some of your suggestion and see these oil companies move from oil to ethanol or some other sources like you said ''its all demand'' then LOWER THE DEMAND AND DEMAND SOMETHING ELSE!!

[albinm]

have you noticed that we are buying as much oil as we can from overseas, but we are selling as much american oil overseas and not helping our american citizens here at home to lower fuel costs. the oil companies are really raking in the dough now, and how much of the american worker recieve from those profits. very little. i believe its time to vote out every one who is now in office and start over.

[mrconservatv]

Posted by libsrweak at 03:35 PM : Feb 29, 2008

What side our you Repugs on it''s so confusing with all the support you fools hand out

Spring 2004
As a result of its aggressive pursuit of energy interests in Central Asia and its need for antiterrorist allies, the Bush administration has courted some of the region''s nastiest autocrats, including Azerbaijan''s Aliyev, Kazakhstan''s Nursultan Nazarbayev, and Pakistan''s Pervez Musharraf.

But the most tyrannical of Washington''s new allies is Uzbekistan''s Islam Karimov. Under the rule of this ex-communist dictator, tens of thousands of political and religious prisoners languish in the country''s overcrowded jails; many are tortured and executed.

Grover Norquist
Norquist was the prime architect behind the many Bush tax-cuts

point man for Republican Party outreach efforts within the Muslim-American community

Grover Norquist has been confronted many times over his activities in behalf of the radical Islamic front in this country.

[jwind11]

Look at who''''s talking!!

One minute the neo cons are selling weapons to Saddam Hussein (1985), 6 years later we''''re fighting them.

One minute we''''re arming the Taliban to fight the USSR, the next they''''re flying planes into our buildings!!

You neo cons have a pathetic record on national security - you''''re the last group of people that should be talking about it.

Posted by hungry1968 at 05:10 PM : Feb 29, 2008

Looks like the only thing that stays steady is that libs blame everyone but themselves for their pathetic lives.

[element51]

I don''t mean to complain but we are just about tapped out. If prices keep going up like they have been it is going to be very difficult to make ends meet. We have never been what I consider "poor" but we seem to be getting closer every day. Utility costs, food, gas, and local taxes are draining us dry. There is no money for any extras let alone luxury items. Shopping for food has become a matter of looking at the price and replacing the item back on the shelf. Sooner or later we will all hit the wall and who will the rich find to bleed dry when we are gone.

[hungry1968]

i dont get your..one day you support muslims then the next you pretty much say they cannot be trusted..make up your mind or your ideas change on a day to day basis

Posted by libsrweak at 03:36 PM : Feb 29, 2008




Look at who''s talking!!

One minute the neo cons are selling weapons to Saddam Hussein (1985), 6 years later we''re fighting them.

One minute we''re arming the Taliban to fight the USSR, the next they''re flying planes into our buildings!!

You neo cons have a pathetic record on national security - you''re the last group of people that should be talking about it.

[hungry1968]

what is wrong?? worried that you cant get oil??
I thought liberals dont need oil that is why they would not even support any effort to secure it..

Posted by libsrweak at 03:35 PM : Feb 29, 2008






You''re going to secure the oil reserves by invading a country and destabilizing an entire region? You call that an effort?

[samthetvcat]

Sorry, I take back the ''idiot'' and ''pea-brain'' remarks - that was rude . . .

[samthetvcat]

libsrweak, oil prices are tied to demand idiot. All for-profit endeavors charge what they can get away with from the market . . .

Consider it like this pea-brain . . . what if oil companies DID start charging $150 a barrel. Could you still afford to drive your car? Wouldn''t you maybe be forced to car-pool or take public transportation? Wouldn''t you maybe walk more or ride your bike?

If demand plummets then OPEC sells less and their profits suffer . . . the set the price to maximize their profits . . .

[libsrweak]

when it hits $200 a barrel..these anti-war pro-muslim liberals would BEG to ''invade'' middle east for thier oil...

[libsrweak]

so does this mean..no more caravan of cars going to a ''no war for oil'' protest..

reduce consumption...dont give any to those liberals..they dont deserve to even have gas

[libsrweak]

I''''d like to hear what the experts think the price of oil would be if we hadn''''t invaded Iraq...don''''t you kind of get the sense that it''''d only be trading around maybe say $70/barrel?


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Posted by SamTheTVCat at 04:02 PM : Feb 29, 2008
+ report abuse

**************

if we decided to take the liberal''s idea of being PASSIVE in middle east..may it be in iraq or any where else..what makes you think they would even sell you oil at 70$ a barrel...they can sell it for $150 a barrel...WHAT ARE YOU GOING TO DO ABOUT IT???? discuss it with the UN?

[samthetvcat]

"Many analysts believe the underlying fundamentals of oil supply and demand do not justify such high prices. Some predict speculative investing could push oil prices as high as $120, while others argue prices have formed a bubble, and could crash back to the $70 range."

I''m confused - are they referring to the price of oil futures or the actual light sweet crude? Because futures don''t ever deviate very far from the actual price of the oil itself.

And from everything I''ve read, the increase in oil prices over the last couple of years IS largely attributable to the increase in demand from China and India, with the rest of it being attributable to unrest in the Middle-East and the weakened US dollar.

I''d like to hear what the experts think the price of oil would be if we hadn''t invaded Iraq...don''t you kind of get the sense that it''d only be trading around maybe say $70/barrel?

[it_oldtimer]

A "huge reserve" in the Gulf of Mexico??? Yeah, right! Do you Repugs EVER bother to actually research a single thing you say?

You really should. You all sound like simplistic fools.

[demslie]

We have a huge reserve of oil right off the South Florida Coast but, the Democrat Environmental Nuts and the Democrat Controlled Congress made it illegal for the United States drill for it because America is bad. Yet not one Democrat alive said anything when their Communist Buddies From China and Cuba began drilling in the same pool of oil for the benefit of their countries. Its obvious that Democrats hate America the same as their Communist friends in China And Cuba.

[libsrweak]

why did they try and sell port seccurity to a muslim country?


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Posted by ainttaken at 03:19 PM : Feb 29, 2008
+ report abuse


************

i dont get your..one day you support muslims then the next you pretty much say they cannot be trusted..make up your mind or your ideas change on a day to day basis

[libsrweak]

Posted by ainttaken at 03:19 PM : Feb 29, 2008
+ report abuse


**************

what is wrong?? worried that you cant get oil??
I thought liberals dont need oil that is why they would not even support any effort to secure it..

[tylenol6]

Everyone needs to google "U.S. to skirt green card check" by the Washington Post. The Bush Administration
will grant permanent residency to ten''s of thousands of
legal U.S. immigrants without first completing required
background checks against the FBI''s investigative files.
No background checks???? Sounds like to me Bush isn''t too worried about terrorists here in the U.S. Also sounds like to me the "war on terror" is a complete
FRAUD!!!!!!!! Bush is planning the North American
Union where the U.S., Mexico and Canada are merged
as one. THIS IS THE MAIN REASON BUSH AND CONGRESS WILL
NOT CLOSE THE BORDERS!!!!!! The Bush adminstration is
also tanking the dollar intentionally so we can have
one currency, the "AMERO". BETTER WAKE UP PEOPLE!!!!