Oil Prices Reach New High

Cost Approaches $114 Per Barrel Aided By A Weakened U.S. Dollar

(AP)  Oil prices set yet another intraday trading record Tuesday, surging close to $114 a barrel as the U.S. dollar fell and crude oil shipments along one U.S. pipeline were said to be moving below capacity.

Light, sweet crude for May delivery on the New York Mercantile Exchange traded as high as $113.66 a barrel by afternoon in Europe. That was $1.45 above the trading record set last week and $1.90 above Monday's record settlement close of $111.76 a barrel.

The recent run above $100 a barrel has been largely attributed to a steadily depreciating U.S. currency because a weakening dollar prompts investors to seek a safe haven in hard commodities such as oil and gold.

"We've seen another swing down in the U.S. dollar so I think we saw short term traders go back into oil as a hedge against the falling dollar," said Mark Pervan, senior commodity strategist at the ANZ Bank in Melbourne, Australia.

Stephen Schork, in his Schork Report, described the rush into oil on the falling dollar as an automatic reflex.

"Traders on the Nymex saw the dollar take another tumble, so they did what they have been conditioned to do when the dollar falls, i.e. they bought crude oil," he wrote.

Monday's news from the U.S. bank Wachovia Corp. supported oil prices by making the U.S. dollar less attractive, said Victor Shum, an energy analyst with Purvin & Gertz in Singapore.

Wachovia, the fourth largest bank in the U.S., reported a hefty first-quarter loss and cut its dividend, and said it was forced to seek a $7 billion cash injection to make up for a poorly timed expansion of its mortgage business.

"This news highlights the strains in the banking sector and credit markets and that has led to more dollar selling, and so that tends to drive investors into oil and other commodities," Shum said.

He said the news from Wachovia as well as disappointing first-quarter results from General Electric Co. on Friday overshadowed concerns raised by the Group of Seven industrialized nations about the dollar's fall. The G-7 remarks were seen as a warning by some analysts that the group may be contemplating an intervention that could lessen crude's attraction as an inflation hedge and send it lower.

Crude was also supported by news of disruptions to crude supplies, though analysts said the interruptions were minor.

"They only look like temporary shut downs but ... the combination of that and the fact that the dollar was off again was the key," Pervan said.

The Capline pipeline - the Royal Dutch Shell PLC conduit that carries 1.2 million barrels of crude each day from the U.S. Gulf Coast to the Midwest - was closed on the weekend, and has since resumed operations at a slightly reduced capacity.

In Nigeria, Italian energy giant ENI reported a 5,000 barrel per day reduction in production at one of its facilities.

In other Nymex trading, heating oil futures added nearly 4 cents to sell for $3.25 gallon while gasoline prices rose by close to 3 cents to $2.8491 a gallon. Natural gas futures gained more than 12 cents to $10.175 per 1,000 cubic feet.

[arcvn]

Just who are the "investors" who believe the price of oil will continue to rise in the US? Oil companies? Also, what about the terrorist assertions/or US fears that economic havoc would tear down the US -- who has the money? Is it not the middle east and all the oil companies there? Can''t they also influence the value of the dollar in other ways? It really bothers me to think that it is US investors are so willing to drive the price of oil through the roof just so a precious few can line their pockets with the hard earned cash of hardworking Americans.

[arcvn]

Just who are the "investors" who believe the price of oil will continue to rise in the US? Oil companies? Also, what about the terrorist assertions/or US fears that economic havoc would tear down the US -- who has the money? Is it not the middle east and all the oil companies there? Can''t they also influence the value of the dollar in other ways? It really bothers me to think that it is US investors are so willing to drive the price of oil through the roof just so a precious few can line their pockets with the hard earned cash of hardworking Americans.

[noloyalisti]

The neo conservative republicans got everything they wanted.

A quagmire in Iraq so they could steal and occupy the country for their oil.

More money than they can use to their corporate benefactors, AT&T, Chevron, GE, Exxon, Halliburton, Blackwater and WalMart.

Destruction of government services so they could say there was a problem and privatize.

The destruction of home values and retirement for the middle class so they can transfer the money to the rich.

The problem was that we even thought they cared about their country. Time for a revolt? At least some more bumper stickers and people at the protests.

[simpsonman19]

Every day it seems like oil is hitting new highs and it seems that no matter how much we conserve or less we drive the speculator''s don''t care and keep driving up the price. So all I can say is what I''ve been saying for a while, don''t drive more than what is absolutly necessary. Take a vacation closer to home, or don''t go at all. Shop for groceries or other things on your way home from work to reduce the number of trips.

All we can do is spend less by driving less, we can''t seem to stop the bleeding though...

[forthepeopl1]

if it aint MR. POTATOHEAD, LOOKS PRITTY SCARED DOENT HE. ITS FUNNY TO HAVE THIS INSIDER OF WALLSTREET HAVE SO MUCH POWER..


LISTEN IF THEY ( CONGRESS) WOULD DO THERE JOBS WE WOULDN''''''''T BE IN THIS MESS.

ANYONE THAT TOOK OUT LOANS FROM 2000 TO 2007
REGARDLESS OF WHAT THERE CREDIT LOOKS LIKE RIGHT NOW, BECAUSE OF THIS MESS MOST HAVE LOST THEIR GOOD RATING.


THEY NEED TO COME OUT AND TELL ALL MORTGAGE COMPANYS

TO RE-FI EVERYONE NOW. NO EXCEPTION IF THEY HAVE A
MORTGAGE THAN TAKE 60% OFF THE BALLANCE AND RE-FI THEM AT 1 PERCENT OVER PRIME AND STOP ALL THE BLEEDING FOR ONCE..THAT IS ALL THAT HAS TO BE DONE, SIMPLE,FAST,AND IT WOULD STOP ALL FORCLOSEINGS,BURNINGS OF HOMES,AND STOP 10''''''''''''''''''''''''''''''''S OF MILLIONS FROM BEING ON THE STREET..

THIS IS MORE INPORTANT, THAN THIS ***.

OR HOW ABOUT REPORTING THAT WE THE PEOPLE WANT TO KNOW THIS FROM CLINTON AND MCCAIN. WHAT DO YOU WANT TO SAY TO THE 374,298 AMERICANS DEAD,HURT,MAIMED IN THIS WAR YOU SUPPOTED FROM THE START..HOW ABOUT ASKING THEM THIS


TIME TO MARCH DOWN AND TAKE THEM OUT..

[ora734]

Ethanol is a sham, how much money has it saved you on your fuel bill, and how much has it cost you at the food store? I pray tell what happens in the event of a drought? Ethanol will be higher than gas ever got.
It''s all a sham for the oil companies to get their bio fuel refiners built on subsides of the American people.
I voted for Bush once, I wrote in Barney fife the last time, I should have voted for Kerry.

I used to say J. Carter was the worst president we ever had, he has been knocked off the podium by Bush II. Carter was naive and not well advised, Bush it appears as though he has started the down fall of the great prosperity, him and his friends in oil, and their stooges in the futures market..

He fiddles while the economy is choked to death by speculation and greed...

[element51]

ora734....I totally agree with your post. Once I found out the process for making bio-fuels I knew we were in trouble. Sacraficing the food supply to make fuel is total insanity. Not having fuel is inconvienent...not having food is death. If things continue on their present course, the future does indeed look bleak. It''s a vicious circle..higher fuel prices...higher food costs...less food to produce fuel..and on and on. We so desperately need some good leadership to even to begin to address this problem but I sure don''t see anyone out there who can do the job. Maybe it''s time for the aliens (space aliens) to show up. We need some help.

[underdogus]

lastdance81 ..you again?.shesss

[ora734]

WOW another record set, it''s like Christmas to these speculators, but it''s hollow when you break records everyday which means it''s an everyday occurrence and nothing special at all. Then you have Ethanol that is causing food to inflate at double digits inflation, don''t mean nothing to the FED; my fuel bill is the least of my expenses now.
The FED removed GAS & FOOD from inflation calculations which is a master stroke of imbecility, created just for cooking the books because they really new what was coming and wanted to delay it till they retired are die and in greenspans case it may not be far off given his age.

People the cost of a gallon of gas is the least of your worries, you just don''t know it.

The stock market is up in the face of all of these fundamentals choking out the people who keep it going, pre 1929 A.D.

OH HAPPY DAYS for the futures market.

[underdogus]

slade999999.. boring,next!

[fastfredy1]

Drill for more oil in our own country. i know we have it here but the tree huggers won''t let us. Screw the Caribiu, lets eat them and drill for the stuff.

[marcpcbs]

There''s no recession, these oil people are simply taking every spare dime in our pockets. We can''t afford to travel, take vacations. buy food or medicine. Now they say the feds may remove the 18-cent gas tax for the summer. That should reduce the cost of gas by about 3 cents.

[bookwerm314]

Guess what? Oil is NOT at an all time peak.. the US Dollar is at all time LOWS! In any other international currency, oil is only slightly more expensive. The drop in the US dollar is entirely due to Bush, his policies, and the incompetence pervading our government. No, I am not a dem, would be a repub if they didn''t LIE all the time.. 75%of the national debt is from REPUBLICAN / LIEPUBLICAN presidents and their budgets! Sick! And they fool so so many into thinking THEY are fiscally responsible.. where is Perot, Paul and the other saviors? Ignored and cast off.

[mcvet]

lastdance81..you''''re BORING (yaaaawwnn)..


--------------------------------------------------------------------------------

Posted by underdogus at 12:24 PM : Apr 15, 2008
+ report abuse

How''s that Swastika Breath!! ROFLMAO Oh I can''t wait to hear this!! A pathetic bootlicker being asked to explain his feeble attempt at being superior. This is going to be good folks!! Sieg Heil Bush!! Dumb as a box of rocks these fascist... ROFLMAO

[underdogus]

lastdance81..you''re BORING (yaaaawwnn)..

[occams_taser]

The surge is working.

[marcodele]

Bushie, you''re doing a heckuva job!

[liberalme]

havent posted anything about GOP information....just wondering why you are answering your own questions with admitted wrong answers....whats wrong with you?


Posted by jamesm12341 at 11:17 AM : Apr 15, 2008

Ahhh jwind11 the never ending attempt to call someone wrong with no correct information of your own to prove him wrong--what''s wrong with YOU??

The fact is, you never post any information, your purpose is to instigate and challenge and our purpose is to ignore you--now go tell mommy.

[lochlan-2009]

"just wondering why you are answering your own questions with admitted wrong answers....whats wrong with you?"

Alright, I looked it up and did the math for you. You are right, the Euro has risen by 89% against the dollar. The U.S. dollar is now 5.5% away from having its value cut by half.

Thanks for pointing out how far off the mark I was.

[fairmusic]

The hottest commodity in town!




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