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.

[ontheleft]

$112 a barrel oil? I wonder what the price of oil would have been today were it not for those hanging chads in Florida.

[brianbwb-2009]

"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."

And I guess the neocons are going to blame this one on the Arabs, right?

[ontheleft]

In mathematical terms: low dollar (product of Bush''s economic policies) plus high inflation (consequence of Bush''s borrowing) plus long term war in Iraq (Bush''s misguidance) = $4 a gallon for gas.

[Gary Kempf]

"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 truth actually being: We can and will "Stiff" the the working class at every opportunity, and create one if neccessary!

[rob416]

Oil keeps going up , up, and up. The pain at the pump is the consequence among other things. Not being an economist I would imagine there are multiple factors for the continued rise. It is apparent to me the Bush Administration policies have done nothing to stem the tide.

I''m not prepared to say President Bush is the cause of the high prices at the pump, but certainly he has a responsiblity to deal with widespread economic effects of that. Its time Mr. President for another reality check.

[crater7]

BUSH BLUNDERS CONTINUE. DOES ANYONE REMEMBER THE GOOD OLE DAY''S? YOU KNOW BEFORE BUSH. GAS WAS LESS THAN $1.39 A GALLON. SEVEN YEARS LATER, $3.39 AVERAGE PRICE PER GALLON. AHHHHH YES, THE GOOD OLE DAYS....

GOD "BLESS" AMERICA. NOT "G D" AMERICA.

[underdogus]

Gas prices exected to rise amid record oil prices..RECESSION!!

[naucoming4u]

Gas prices exected to rise amid record oil prices..RECESSION!!

Posted by underdogus at 07:02 AM : Apr 15, 2008
..........

Wow, underdog, you''re actually saying the "R" word for the first time (that I''ve seen)!

I''m proud of you!

:-)

[underdogus]

HOLY MOUNT ZION!! 112.$ a barrel of oil!!!great depression may be round the corner......

[underdogus]

Ladies and gentlemen,we can''t get out of Iraq, and we can''t stay!! hmm catch 22?...

[mistered9]

Don''t blame the oil people, blam the drivers. The only way to put an end to this feasco is gas rationing. Force people to slow down on their driving habits. If you had the chace at big bucks you would do it to. Say no to that.

[navyretired2]

"Don''''t blame the oil people, blam the drivers. The only way to put an end to this feasco is gas rationing. Force people to slow down on their driving habits. If you had the chace at big bucks you would do it to. Say no to that.

Posted by mistered9 at 07:30 AM : Apr 15, 2008"

Very debateable. The dollar being weak as he11 against the euro and other global currencies is what''s causing these prices, for the most part.

If gas was rationed and people drove a LOT less, that would drive down demand, which in turn would drive prices per unit UP.

I fail to see how this will help the dollar.

[samrensho]

That''s great. My oil portfolio is at an all time high and I use public transportation nearly 100% of the time. I''m lovin'' it.

[naucoming4u]

If gas was rationed and people drove a LOT less, that would drive down demand, which in turn would drive prices per unit UP.

I fail to see how this will help the dollar.

Posted by NavyRetired2 at 07:33 AM : Apr 15, 2008
..............

Yes! And another thing that "mistered9" seemed to miss...

If gas was rationed, it would cause a lot of other economic strife. The travel industry would by severely damaged. Gas rationing would only add that much more hurt to an already fragile (and falling) economy. The concept might sound good to some, but in reality, it is not the best solution by any means.

[kevboom]

Here''s a thought, why don''t we put a price tag on Bush''s never-ending military operations in Iraq and Afghanistan to bring "freedom and democracy" to the Middle East, and pump an equivalent amount of oil into tankers bound for U.S. refineries? I''d love to see OPEC''s collective face when announcing that policy. ha The old saying "freedom isn''t free" has never been more true, so how about passing the hat for a change instead of making the American working class pay for everything. We should sponsor a vote in Iraq explaining our bankrupted treasury with two options: pay for continuing policing of radicals with oil, or end the U.S. occupation. Imagine that, a win-win situation for the American taxpayer. Haven''t seen one of those in the last 7 years.

[fedupredneck]

Pretty soon I will have to sell my car and ride my peddle bike to work. When I bought my ride gas was reasonable,now I can''t afford to pay for it AND put gas in it. Anyone wanna buy a Mercedes?

[bgwinnett]

I''m going back to horse drawn wagon.

[xraytwonine]

thanks, lets go world war III

[piano_man2]

We might as well have some fun before the economy collapses. What is your opinion on how high fuel price will go before it causes our economy to collapse?

Remember some years ago when the Soviet Union tried to maintain its control in too many places in the world and finally their economy collapsed. Are we headed for the same thing??

[underdogus]

I fail to see how this will help the dollar. Posted by NavyRetired2 .you''re right... mistered9 go hug a tree...

[bgwinnett]

Actually thats gave me an idea, do Amish community''s take new settlers? If they do count me in, as one of those settlements would be a good place to survive the coming systemic collapse, with their Centuries of self sufficiency and strong community spirit.Best brush up on some German... Mien name ist, Danke schoen.

[fstop100]

This is open market prices, the big oil companies in America ripping off consumers aren''t paying this much for oil. Just using it as an excuse to destroy the American economy. Profits are one thing, What the oil companies are doing should be criminal!

[swwils]

When are the people going to protest to their Congressmen,Senators to do something.Everyone must be waiting for 5 bucks a gallon.Well it is coming and soon.So I recommend start complaining now!!There is no reason why oil,and gas should be so expensive.What we all of a sudden ran out?No,the big boys of the industry are lining their pockets at the lower peoples expense.Remember the Boston tea party,where are the Patriots when needed? Help!!!!

[tbweb]

Oil Prices Hit New High Over $112 A Barrel

It was obvious to me many years ago that oil was being used against the U.S. as a weapon, the same way a missile or bomb is used, only in this case economically. There is no reason for oil to be over $20 a barrel. While the U.S. is developing an alternative solution to oil, the U.S. should also be looking for a counter balance, a counter weapon and I''ve always said it was food, I would tie the price of food to the price of oil and let the chips fall where they may.

[swwils]

I remember gas wars when I was a child,and they would sale gas for pennies.That was cool.Today if you can find a gallon of gas for 3$ it is probably hotter than a two dollar pistol.They are already reports in our paper of people waking up and their tank has been drained.Lock caps don''t work against a pry bar.So you must have a big loud dog,an alarm system,and a garage just to keep gasoline in your vehicle.

[swwils]

I have seen that the Iraqi ministry has allowed so many companies qualify to bid on their oil.That is a crock,we should be given that oil for all our losses for them.That is just another example of our caring government at work.What are they waiting for total economical collapse of our nation,and its people.Prices are soaring not only at the pumps,but at the stores.I went to the store yesterday,and a sack of about 10 apples was $4.99,a bag of frozen chicken breast was only $5.99,about 6 count.So forget the apples I am getting chicken.The analyst have predicted this for about 2 yrs.Apparently no one listened,because it is happening.Now they are saying stock up non-perishable foods,and clothing for 2yrs.in advance because the storm of the century is coming!!!!

[veteran72]

Ain''t life under Neocon Fascist Nazi Rule swell???
Vote for McBushcain, for more of the same/insane....

[underdogus]

It is definitetly time to bring back the Pinto, a well balanced high performance vehicle!!

[bgwinnett]

It is definitetly time to bring back the Pinto, a well balanced high performance vehicle!!

Posted by underdogus at 09:04 AM : Apr 15, 2008

Bring back chariots.

[l8c6]

The big oil people have been collaborating with very wealthy oil sheiks for years. They have grown fond of the methods of those middle eastern royals methods of controlling their people such as beheading people publicly. Torturing is now accepted practice in the United States. Now that these pseudo americans have become global resource tyrants the constitution has become to them as Bush called it, a "********ned piece of paper". It doesn''t work for global rulers to have a constitution of the United States or a constitution of any nation that represents the majority of people. The day has come that global corporations and those that control them will now rule the world.

[mcvet]

mccain can be president for 100 years? wow


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

Posted by jamesm12341 at 08:48 AM : Apr 15, 2008
+ report abuse

President of what or whom? YOU freaks are on your own as far as I''m concerned! ROFLMAO Sieg Heil Bush... Sieg Heil McSame!! ROFLMAO

[mcvet]

Oh but folks you have just begun to experience the wisdom of borrowing the future to enjoy the present. With the debt we have and the way it''s growing... with the dollar becoming worthless on the world market, the fun of "Trickle Down" has just begun. LOL Hang on it''s get''s bumpy from here on in!! Sieg Heil Bush

[spinster2]

I smiled to myself as they pryed the last dollar from my dying grip.

[timdgrim]

Update....it''s now over $113!!

[bgwinnett]

Do we still make the barrels? If we do, we should secretly make them bigger and hope that the Saudis don''t notice or pay whoever makes them to.

[rudy654-2009]

And just remember folks, it only costs the scoundrels a mere 13 dollars to produce a barrel. No corruption there, right folks?

[rudy654-2009]

It is definitetly time to bring back the Pinto, a well balanced high performance vehicle!!
Posted by underdogus at 09:04 AM

Yeah, as soon as we can put the oil execs into it, with a bus coming up on them in the rear with a full tank of 113 dollar gas.

[spinster2]

David Axelrod, Barack Obama, and Exelon are now coming after your light bill. Neither McCain nor Clinton voted for the Cheney eneergy bill, only Obama. Is it any wonder that an energy consultant (exelon) runs his campaign. Would you be surprized to learn that two of the six major power companies, GE and Westinghouse benefitting from this bill own three major television outlets who are all pushing for Obama?

We tried the big oil people and we see what it got us. Ready to try the big energy people?

[naucoming4u]

We tried the big oil people and we see what it got us. Ready to try the big energy people?

Posted by Spinster2 at 09:39 AM : Apr 15, 2008
...........

Well, considering the other major choices...

...last I checked, there is no major electricity producing country that would be the target of invasion by an Obama administration.

[usmcvn2]

I voted for Obama two times. He will not get my
vote again.

[singingrick]

Thanks Bushies!

This is like an idiot tax imposed on the entire nation by the idiots who voted for and support Bush.

[racam_us]

If Bush would just stop roaming around the world trying to find things that need his attention and start right here in this country with the greedy oil people, of which he is one, this would add to his legacy. He would still be the very, worst president in history but this would revise his legacy. He would be the worst president in history, however, he did something to control the price of oil. He did something for the people of the United States or does he even remember us.

[spinster2]

We tried the big oil people and we see what it got us. Ready to try the big energy people?

Posted by Spinster2 at 09:39 AM : Apr 15, 2008
...........

Well, considering the other major choices...

...last I checked, there is no major electricity producing country that would be the target of invasion by an Obama administration.


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

Posted by NAUcoming4U
-------------------------------
LOL, the war is only costing us a fraction of what we''re paying for oil. When Clinton wont vote for the Cheney lobbiest energy bill, no big deal, but when McCain bucks and refuses to vote for it red flags are everywhere. Next we find out freshman senator Barack Obama voted FOR it and now has an energy consultant running his campaign,,,well, I guess we really do DESERVE THE GOVERNMENT WE GET, or at least YOU DO.

[parrot123-2009]

I voted for Obama two times. He will not get my
vote again.
Posted by usmcvn2 at 09:47 AM : Apr 15, 2008

This is not Obama''s fault or his doing - it''s still your Repugs at work here. Whatever happenned to our reserves ?? Anyone ??? Cheers!

[usmcvn2]

parrot123 .....

True, price of oil is not Obama doing, but there are
other things.

Anyways, vote for Hillary, because Snow White and Cinderella want to get married.

[spinster2]

I voted for Obama two times. He will not get my
vote again.
Posted by usmcvn2 at 09:47 AM : Apr 15, 2008
-----------------------------------------
Whether you vote for McCain or Clinton, that''s a smart choice. Obama backed these people 100 percent while McCain and Clinton refused to. Now the energy companies are behind Obama and the major news channels they own are behind him 100 percent. David Axelrod, Obama''s chief indian is a consultant for Exelon who''s donateing heavily to his campaign and is a major benifactor of the Cheney energy bill that even McCain wouldn''t vote for. Bush can''t pass ANYTHING by himself. Just google Cheney democrats and read the first article to see how they operate.

[bogusbones]

aren''t we lucky to have such an economically astute administration leading us to ruin? as the traders and the oil companies continue to rape us, bush/cheney cartel continues to stand on the sideline and watch the pillaging. gotta love those two as naked, blatant capitalism ruins our country, starves our people and puts dirty, bloody money in the hands of a few. what did jesus say about the money changers at the temple? better go read your bible a litte closer georgie boy.

[fstop100]

Houston we have a problem!

[usmcvn2]

The born agains never read the book cover to cover. They learn a few verus'' and go around pizzing people off. And vote for fools'' to run the country.

"Round and round we go, where it stops, nobody knows".

"Keep your powder dry"

[lochlan-2009]

"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."

These people at will quite obviously have the ability to make markets move up or down, just as they did with the U.S dollar when the Bank of England, Bank of Japan, the Federal Reserve, etc. collaborated to make the dollar fall.

Remember the Fed interest rate at 1%? That was a dirrect assault on the value of our currency.

Remember the Fed pumping (printing) billions of dollars into the economny? That was a dirrect assault on the value of our currency.

Remember the Fed doing nothing to prevent the economy from slipping deeper into a recession except offer bail outs to the bankers that made the "unregulated" loans that put our economies housing market in its current situation?

If and when they want to turn things around in the U.S., they will.